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Obviously that person must have had a lot of deductions (perhaps contributions to retirement funds?) coming out of their pay. If someone is contribution a really substantial portion, then the NET of the pension could be as much or greater than their NET paycheck.
They only thought they did. They hired me back as a consultant six months after I left. The man who was given my job, contrary to my recommendation, was so incompetent, I had to spend six months training him. I made them pay me as a consultant almost twice the amount they paid me as an employee.
Obviously that person must have had a lot of deductions (perhaps contributions to retirement funds?) coming out of their pay. If someone is contribution a really substantial portion, then the NET of the pension could be as much or greater than their NET paycheck.
I purposely maxed out my 401K contributions the last two years I worked to get used to living on my pension income. Then I paid off the mortgage, all credit cards and tore them up to be debt free. Then we only needed one car, and I saved on clothes, dry cleaning, commuting, buying breakfast and lunch and coffee at work. Add in SS and RMD's and 16 years of colas and I am netting more now than I was the day I retired.
Curious - how can the pension pay more than working? I will have a pension, but no matter how long I worked, it would never be more than my work pay.
I think my husband's federal pension (under the pre 1983, think it was) retirement system, pays around the same amount as his salary from the federal government did. It comes out that much as he doesn't have all the deductions taken out of his pension that he did out of his salary when he was working. He still does get a hefty portion deducted for our secondary health insurance, though.
I have a state pension ( not one of the blue states, so it's not a princely sum). Between that and the social security I get, it comes out to about as much as I made with that employer when I was working.
I didn’t resign, Covid killed my job so TPTB paid me to go away. The timing couldn’t have been better. I was already two years past my first retirement threshold at 60 and was frankly, done. Sold our house, relocated, built another house, etc. I’d rather be lucky than good!
Yep. My employer and I mutually agreed that I had there too long and they were willing to pay me a tidy sum to leave. I was than happy to be paid for not working.
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"Hate is too easy, Love takes courage."
(set 13 days ago)
Location: Washington County, ME
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I retired early due to disability - two bad knees.
My employer had the option to find me a different job within the company, but at the time they were sort of downsizing (around 10 years ago). They were closing the facility i worked in.
I think my husband's federal pension (under the pre 1983, think it was) retirement system, pays around the same amount as his salary from the federal government did. It comes out that much as he doesn't have all the deductions taken out of his pension that he did out of his salary when he was working. He still does get a hefty portion deducted for our secondary health insurance, though.
I have a state pension ( not one of the blue states, so it's not a princely sum). Between that and the social security I get, it comes out to about as much as I made with that employer when I was working.
Same here. My goal is to duplicate my job's net pay (at least), with my pension plus SS. I have an investment portfolio, but don't figure that into the equation. That will be a nest egg that I would use for emergencies or big, unexpected expenses, or a splurge here and there, or to pay for whatever will pop up near the end (as something surely will). I don't want to count on investment income for my living expenses. So if I can hang in there with the job for two more years when I hit 65, I will exceed my net pay a bit. But more importantly, Medicare will start at 65. Insurance is the BIG fly in the ointment for me. Otherwise, I would probably work only one more year. Not sure what to do with my home's equity at some point. But good to know it's there if I need it too. At least that's as far as I've gotten with "The Plan". So much to think about.
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