Originally Posted by
Denny Crane
You are right, a pension doesn’t get turned over to your estate but......
Everyone needs some kind of income to cover expenses. How about you use that pension to cover the first $130k of yearly expenses and now you don’t have to withdraw that out of your retirement accounts allowing them (the retirement accounts) to grow your estate even more.
Denny
I don’t disagree with that at all. Just encouraging people to make fair comparisons. I hear all the time “I would need $xxx in order to equal my 60 fae without taking away principal.” It doesn’t work that way. There are a number of factors that drive you towards a correct analysis of annual income in retirement.
There aren’t many benefits to pensions these days but one is that they can assume we all live to the average age. When you individualize it we all must assume we live to the max which greatly increases funding requirements.