No. of Recommendations: 12
Another thing many people don't realize is how back-loaded most defined benefit pensions are.

I kept getting annual benefit statements projecting a comfortable $2K/month pension when I retired. Even reduced 20% by my planned early retirement at 60 the pension would be about $1600/mo based on my present salary. Then I got "involuntary early retirement" at 51. My projected pension suddenly dropped by 40%. I had 24 years service but by missing the additional 9 years work that I had planned on, I also missed out on most of my pension. Even though I got another job quickly there was no way to make up for the loss in the new employer's pension program. It was also back-loaded to reward only those with many years of service. At that point my quarter century of saving and investing became my savior.

In this age of uncertainty about job tenure I think everyone should strive to save enough for retirement without a pension or social security. If you eventually get something from those programs it just means you'll be able to live a little better in retirement.

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