3 ms·
The 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 priva
by closeparen 7y ago
The 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.