4 ms·
> Then it's 1.1%/year. Still, if you assume something like a 4% return (maybe comparable to the bonds behind them?), that 1.1%/year amounts to another 27.5% on
by repsilat 8y ago
> Then it's 1.1%/year.
Still, if you assume something like a 4% return (maybe comparable to the bonds behind them?), that 1.1%/year amounts to another 27.5% on top of your gross pay.
And that's not considering the likelihood that you'll be earning more at the end of your tenure than at the start. You're effectively earning that significant fraction of your final pay on top of whatever you see in your pay check.
- Jtsummers 8y agoWhat that 1% or 1.1% per year represents is your pension, which is paid like a salary. So if I work for 20 years and have an average of 100k for my high 3-year, I'm getting $20k/year for the rest of my life. In the same circumstances but I retire at age 62 (leave work at age 62), I get $22k/year for the rest of my life. The current President is also talking about eliminating the cost-of-living adjustmetns that have been typical (intended to keep with inflation) for retirees, and changing the 3-year average to a 5-year average. The other number I gave (5%) is a matching contribution to the TSP (401k equivalent), that is cash given each year and will add up to something more substantial. Even assuming a modest 4%/year return over 20-30 years of contributing.