Originally Posted by dckozak

Are you really a new hire? If you are young and give Fedex at least 25 years, you will top out at 50% of your final average earning. Assuming no change in the cap and assuming you are fairly young. Chew on this:

Our last known rate of pay for WB CAPT on Nov 2020, 15 years service is $335.56. Use what ever multiplier you like to guesstimate yearly pensionable earnings. Based on historical averages, we (I mean you, I'll be gone) can expect 3% pay increases if inflation doesn't change from current trends. By my figuring, the hourly rate for Fedex should be about $700 per hour in 2045, your yearly pay least $700,000 per year. Your A plan payout the year after you retire, $130,000 (18.6% of your previous years pay). Your income in 2070, possibly age 90, A plan, $130,000. Fifty two years from now, with steady 3% inflation, all money, in constant dollars, will be worth 78.5% less. To put it another way, $130,000 in 2070 will be worth the equivalent of $27,951 today. On the hypothetical day of your retirement in 2045, 55% less with 130K equivalent to $58,525 today. All this assumes 3% inflation, worse inflation, bad to really ugly.

I hope your B fund does as well as mine has in recent years. PRIMECAP has had double digit gains. I hope the good times roll. We will all need it, especially you guys.