How would a monthly guaranteed pension figure into retirement saving/investing?
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Hey Hutch!
Well, personally I probably wouldn’t COUNT on a pension, other than maybe federal government or military. I would want to have enough on my own to cover my expenses and look at the pension as bonus.
If you do want to count it as “guaranteed”, then simply reduce your annual expenses by that much when figuring out what you need to retire. i.e. if you spend $60K/year and have a $40K/year pension, then you just need investments large enough to cover the other $20K. (According to the 25X retirement number rule, that would $500K)
Jeremy,
It would be a Government pension. Thanks for the input.
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