Author Topic: Just found out I can get pension at 50  (Read 2150 times)

nancy33

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Just found out I can get pension at 50
« on: August 10, 2017, 08:22:28 PM »
So, I worked a government job for about 8 years, switched jobs about 10 years ago, and I'm 49 years old. I have to share on this site. I just decided on a whim to find out if maybe I can collect my pension at 50?
Unbelievable! In less than a year I can start collecting a 25 k a year pension for the rest of my life! Also, the pension has COLA!
We have 850 k invested in addition and dh can retire with a pension as well as health insurance at 57.  I think this pension income starting at 50 for me counts the same as if we had 600k in additional investments when calculating FIRE with the 4 % rule?  Does that sound right???

human

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Re: Just found out I can get pension at 50
« Reply #1 on: August 10, 2017, 08:34:23 PM »
8 years in a government job gives a pension of 25k a year at 50? Or is it 18 years work that is pensionable?

I'm in Canada, at 50 I'll have 25 years in and an "allowance" of about 40-50% of my best 5 years. That will be about 50-60k a year.

I think I'm not understanding how many pensionable years you have unless your gov job paid a good chunk of money or you were a politician or something.

powskier

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Re: Just found out I can get pension at 50
« Reply #2 on: August 10, 2017, 08:45:58 PM »
Happy for you but boy, that sounds like easy money. Is this state or federal? What state if so?

nancy33

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Re: Just found out I can get pension at 50
« Reply #3 on: August 10, 2017, 08:50:55 PM »
Yes 8 years !  my pay was pretty high, about 120 k at the end and they base it on highest paid year! I know it is unbelievable, right?
I'm one of those state of CA pension people who are bankrupting the state I guess. I was thinking maybe I'd get 600 a month at 65. I am in disbelief too.
I just got the info from the pension office, my personal calculation. I think it is legit.

nancy33

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Re: Just found out I can get pension at 50
« Reply #4 on: August 10, 2017, 08:52:55 PM »
I should correct...it somehow relates to Cal Pers but this is a county pension in CA

GenXbiker

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Re: Just found out I can get pension at 50
« Reply #5 on: August 10, 2017, 08:53:55 PM »
Nothing surprises me when it comes to the government promising away taxpayer money.

But congrats to you.   That's like winning the lottery if you weren't expecting it.

nancy33

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Re: Just found out I can get pension at 50
« Reply #6 on: August 10, 2017, 09:02:12 PM »
Yes I imagine this is how it feels to win the lottery. Thank u for allowing me to share.

Another Reader

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Re: Just found out I can get pension at 50
« Reply #7 on: August 10, 2017, 09:35:11 PM »
That does seem a little high for a participating county in CalPERS.  Two percent per year of service at 55 is considered fairly generous, I think Santa Clara County went with 2 percent at 50 and 2.5 percent at 55 in the late 90's.  2 percent at 50 with 8 years of service gives you 16 percent and using your highest year only gets you $19,500.  Curious about how the amount was calculated - 2.5 percent at 50?   Were you a safety member?

Bicycle_B

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Re: Just found out I can get pension at 50
« Reply #8 on: August 10, 2017, 09:44:10 PM »
Unless you're going to work more in some way that increases the pension, grab it while you can in case they do go bankrupt!

PS.  If the pension remains in force for decades, inflation could affect it.  As someone who also has a pension coming (though much smaller and later), I have considered that the mortgage on a rental property could neutralize inflation's power to erode the pension's purchasing power.  Fwiw, I figure that if the payments on the mortgage and the pension are equal at the start of the pension, the inflation effect would be equal until the mortgage gets paid down.  Just a thought - curious what others think, in case there's something I missed.

Anyway, enjoy your lotto winnings.

Dicey

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Re: Just found out I can get pension at 50
« Reply #9 on: August 10, 2017, 10:38:17 PM »
Holy shit! Is there a healthcare benefit associated with this pension? That could really be worth something!!!

I do know that CalPERS is projecting huge shortfalls. See-> http://www.sacbee.com/news/politics-government/politics-columns-blogs/dan-walters/article148181774.html*, so be sure to do your homework. Don't count this chicken before it's hatched. OTOH, if you can grab a few eggs before it all goes to hell, I'd suggest you do so and sock 'em away, so they have plenty of time to multiply in your nest, not the State's.

A friend of mine works for
Spoiler: show
some college
in SF. At the time she was hired, it only took FIVE years to be fully vested. What the hell? Good if you can get it, says I.

*Random google grab; didn't read. I'm sure there's loads more info available if this article's skimpy on details.
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nancy33

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Re: Just found out I can get pension at 50
« Reply #10 on: August 10, 2017, 11:49:12 PM »
I'm looking at it again, it says 2 percent at 55 but 1.4 percent at 50. It says my highest monthly salary was 17,500.  Maybe I was recalling making 120 k because I was putting so much in my 457 and 401k? (And paid off my 180k in student loans!) That was a long time ago, I guess I was making more ? I sure hope it is correct. I also do remember buying back some retirement when I went on maternity leave. It also says maximum COLA of 3 percent. it is also from 2 different counties and says "miscellaneous reciprocal reserve" because I worked for 2 different counties , luckily wealthy counties so they had better not go bankrupt.