5 ms·
Err, who earns $75k a year for 40 years? 40 years ago that person probably started off below $15k/year. (In 1979 average household income was $19,553) https:
by phonon 7y ago
Err, who earns $75k a year for 40 years?
40 years ago that person probably started off below $15k/year.
(In 1979 average household income was $19,553)
https://www.multpl.com/us-average-income/table/by-year https://www.multpl.com/us-average-income/table/by-year
- closeparen 7y agoThe calculation includes inflation. $20k in 1979 is $70k today. It’s also the classic tradeoff of government work: lower salary than you could get in the private market, but retirement equivalent to a higher salary than you could get. Compelling only if you are sufficiently long term oriented.
- phonon 7y agoI ran a few scenarios--your numbers are not correct. Start at age 20, making $15,000/y, increasing 5% per year. (Salary at retirement over $100k/y) Assume annual savings rate of 15% 8% return Retire at 60. I get around a million dollars saved at age 60 (i.e. today). Not enough to buy an annuity that pays out over $100,000/y. Off by a factor of 2 or so, I think. And starting salary 40 years ago was probably under 15k, 8% consistent compounded returns are really good, the other retirement benefits besides the pension etc.