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Should pension be factored into a net worth?

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  • #31
    We opted to avoid the pension and instead go with SS. We don't include SS in our asset or retirement estimates. I assume all pensions and SS will be gone at that time.

    I agree w/ @Donnie that it should, but mentally I can get away with it for now, and having included in income won't change our plans now. Same thought for the $100 I keep in my passport. If I forget its there, it's a cool surprise later!


    • #32
      Someone asked what retirement system this is in reference to - I am in NY:


      • #33
        That is a really nice pension-mid 100s at 62.Slav-- I know you are doing PP-do you ever toy with the idea of leaving the State job at doing PP full time?---you could probably get the salary and pension NOW(and then some) vs waiting for 62.

        I also am at a place with the golden handcuffs--salary on the low side but pension nice and at 55--however to diversify I am at 0.5 , I did at one point think about going full time but then I would not have time for any 1099 income -or if I did it would feel like I am working too hard.


        Diversifying jobs is nice for psychiatrists however we end up working more than we planned.


        • #34
          My spouse has a pension. It has kept us in the state of Missouri despite being miserable. Golden Handcuffs for sure. My private practice is also thriving so it's double golden handcuffs.
          We are very heavily invested in stocks because of the pension... and because we're 39.
          It's been interesting reading everyone's comments of how they're treating pensions.
          Big 4-0 coming in 2018 for both of us. Been debating making portfolio a bit more conservative... but think we will remain mostly stocks since we've got more than 10 yrs until retirement and the pension.


          • #35
            Same boat, but mine vests after 5 years and eligible for retirement at 59.5


            It wil however keep us at our first job for 5 years, like it or not-even though our contributions are payable if we leave before then. We'd miss out on the 15.3% state match.


            • #36
              We treat it like a deferred annuity, and don't consider any part of it in net worth. I like the previously mentioned easy math of 40K pension income = 1MM you don't need to save. Another way to look at it is that you can retire earlier with a higher than recommended withdrawal rate, knowing that you have a future income stream that will start in X years. So depending on your spending needs, you could really be saving for 10 years of retirement rather than 30.