Author Topic: www.cfiresim.com Question  (Read 1583 times)

TomTX

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www.cfiresim.com Question
« on: March 22, 2014, 05:18:13 PM »
So,  A Rebel Spy Keeps touting: www.cfiresim.com

I'm not certain as to what exactly I should be putting into the "Social Security" field. Use the https://www.socialsecurity.gov/estimator/ retirement estimator, then put in the result in today's dollars?

Small changes in assumptions change results pretty dramatically (at least, dramatically to my eye) - but I've been coming up with numbers that have me retiring sooner than I thought (not as fast as a lot of you, though!) My prior assumption was that I would take my (reduced) pension as soon as I could at age 56 (16 years) - or possibly "buy time" with 401(k) money to push up the date by 18 months. IRA/401(k) money would be used to supplement.

Basic plan had been, retire at 55/56 with the pension, draw wife's (small) SS retirement at 62, let mine keep growing til 70, when I will start to draw and she will start taking spousal benefits. Use IRA/401(k) money to fill in any shortages.

The simulator thinks that I can retire sooner, though. 

Unfortunately, there are confounding variables.

If I retire and directly start drawing pension, accrued sick leave gets converted into additional service time. Accrued vacation gets paid out* AND counts as additional service time. If I "retire" before I can start drawing the pension, the accrued leave vanishes, and the age I can start drawing the pension gets pushed out further.

*Either cash, or into 401(k) - currently I have roughly $5,000 and 2 months of potential service time "on the books"

I can start drawing the pension at age 65, OR when age + years of service = 80.

My pension does not inflation-adjust, and is fixed based on .023 x years of service x (highest 36 months of earnings / 3) - likely it will be somewhere around 58% of final salary if I retire upon eligibility.

Anyway, just some ramblings to go with my question.

bo_knows

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Re: www.cfiresim.com Question
« Reply #1 on: April 01, 2014, 01:03:09 PM »
Hey Tom, sorry that no one got to this.

cFIREsim accepts an annual Social Security benefit, whereas (I think) the SSA website gives a monthly number.

Quote
My pension does not inflation-adjust, and is fixed based on .023 x years of service x (highest 36 months of earnings / 3) - likely it will be somewhere around 58% of final salary if I retire upon eligibility.

At least you can account for the non-inflation adjustment in the calculator.

Good luck with the number crunching!