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harley01 wrote:
Is there a formula / rule of thumb that I can use to determine what % of my assets my pension is? If there is such a formula, what is it?

I have the same situation, and I like to take a simple and very conservative approach to this question (as opposed to calculating the present value of an income stream as has been suggested). I simply ask myself "What amount would I need in the bank to generate the same payment per month, at the 100% Safe Withdrawal Rate of approx 4%". I like to use the Safe Withdrawal Rate as determined by the Trinity Study and written about by intercst on the Retire Early website, because the income is 100% guaranteed. Anyway, if you are expecting $1500 per month from your pension, that is $18000 per year. 18000/.04 = 450000. So, I would think of the $1500 per month as though I had $450000 invested in approx 75% equities and 25% fixed income.

Others may choose to use 5% and be a little less conservative than I. In that case, the lump sum equivalent would be around $360000.

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