Originally Posted by
Roberto
I'm not so sure UPS saves any A-Plan money by extending the retirement age.
FWIW, this is how I evaluated the A-Plan and retirement age.
If I had retired at age 60, my retired pay would have been $48K per year (16 years longevity at $3K per year). Over 5 years, this equates to $240K of "free money" I did not take.
However, with 5 more years of employment, my retired pay will increase $3000 per additional year of employment, or a total increase of $15,000.
My parent's average life span was 86 years. If I match that average, I will have 21 years after retirement at age 65. Those remaining years at $15K extra per year equate to an additional $315K of compensation. Considering the time value of money, that pretty much approximates or is greater than the $240K of retirement pay not taken. It also seems to me not to lessen the total retirement expenses that are required to be met by UPS.
Finally, I have 5 more years of employment to make very good wages, a good part of which is saved and furthers my life after retirement. Finally, I enjoy the job, and that was a big factor in choosing not to retire early.
Thanks for the logical, to the point explanation... It does make more sense to me now...