RE: Sustaining Stability
You are viewing a single comment's thread:
I am not sure I would call the current rates crazy:
At 6-7% 30 year fixed actually is inline with a long term average, it is just everyone got used to 4% or lower...
The medical emergencies are the only reason I might want to stay in my job after 62, there is no other reason...
I have been working at my current job for 23.5 years which earned me 47% of my current salary as defined benefit pension. If I keep working till 62 the benefit will be 74% of may salary at that future time so there will be no point to keep working...
0
0
0.000
We have some kind of equation too with a multiplier and all of that, but I don't think it matters once I hit 30 years. After that it is just the base number that changes, not the percentage. 6% is trash. I about had a fit when my wife got a new car and that was the best they could give us. The lady acted like she was doing us a favor, I told her she was smoking crack.
Our multiplier is simple 2% for every year of service. At 62 I can retire with no benefit reductions since I would have over 30 years of service... We have to contribute to this plan and we don't even control the rate at which we contribute:
Like I said, I don't really know how ours works. I just know it is out there. I think our factor is 1.5% or something like that, but then they take your last three years salary and average those. So like Final Average Compensation X 1.5% X years of service. It's honestly quite lose because they expect you will likely be eligible for SSI once you start taking it. Which is part of the reason I would definitely need to get another job if I retired when I can.
Yes, we have that also: "Your AFC is a monthly average of the compensation you earned over your 60 consecutive highest paid service credit months." So basically they will pay x% based on the last 5 years salary average...