Originally Posted by
willflyforfud
I agree with you.. I mentioned removing that liability too. But like I just showed... the math on a percentage or cash over cap is by no means less risky or guaranteed to generate more retirement income. Contracts are also bargained for the median pilot .. not the 100% upgrade work 20 days a month till age 67 person. Your results may vary.
Agreed. You'd want to compare your hypothetical DC fund using min BLG and a realistic retirement age for you.
Our pension/401k mix is nice. Not arguing that. But it appears seriously increasing both is unlikely without some tradeoff, like ending it for new hires or a MBCBP.
Originally Posted by
willflyforfud
People always say the pension is eaten away by inflation... true. BUT, market returns are also affected by inflation and there is no doubt that tax legislation will affect everyones reality when you turn your massive cash over cap fund into retirement income. Also RMD's and the associated tax consequences.
seriously, who besides congress, California teachers, cops and fireman have a 169k pension??... even 15 yrs from now? It is a gd start.
Market returns are measured nominally, so it includes inflation. There's no cap on the upside (or downside..). The fixed payment of a pension will always be that, and inflation reduces its value.
What private employer offers a pension of 169k? I'm sincerely curious. It has to be very few if any. Another thing working against us to increase it even further in the next TA.