Would be curious to hear what you think of the pension, that video. I do think its hard for us to compare the value of a pension to the value of a retirement account. I like to look at it as the reverse of 4% rule . So, if I know I can get 20k a year from a pension, I project what that would be 4% of, in other words multiply it by 25. In that example a pension income of 30k a year woule be like the value of a 750k balance 401k account. Does that make sense? I agree with you that there are pros and cons to pension system. I am part of one through the University I work at, though I'm staff, not a teacher. The pension I have only even is designed to replace a certain amount of income. Retirement is supposed to be made up of: work place account (pension), personal savings, and social security. Three legged stool, they say :)
I agree with your perspective of reversing the 4% rule as an estimate of pension value. It is fortunate to have a three legged stool instead of just two legs! Less likely to fall over so to speak.... I will be making that video, thanks for watching and taking the time to comment.
Would be curious to hear what you think of the pension, that video. I do think its hard for us to compare the value of a pension to the value of a retirement account. I like to look at it as the reverse of 4% rule . So, if I know I can get 20k a year from a pension, I project what that would be 4% of, in other words multiply it by 25. In that example a pension income of 30k a year woule be like the value of a 750k balance 401k account. Does that make sense? I agree with you that there are pros and cons to pension system. I am part of one through the University I work at, though I'm staff, not a teacher. The pension I have only even is designed to replace a certain amount of income. Retirement is supposed to be made up of: work place account (pension), personal savings, and social security. Three legged stool, they say :)
I agree with your perspective of reversing the 4% rule as an estimate of pension value. It is fortunate to have a three legged stool instead of just two legs! Less likely to fall over so to speak.... I will be making that video, thanks for watching and taking the time to comment.
I don’t know any millionaire teachers. I guess anyone in any profession could be a millionaire under the right circumstances.
That is the truth!
Does this study surprise you? Any other ideas why this may be true?