kingOFchester
Well-Known Member
One thing to keep in mind, our pension is a defined pension. If you retire at 55, the dollar amount you walk out with will be the same amount you get when you are 80.
You have to factor in inflation. Someone who retired 25 years ago, their dollar is worth almost half of what it is today.
$4,000 of 1988 dollars would be worth: $7,905.14 in 2013
$4,000 of 2013 dollars would be worth $2,024.00 in 1988
At the rate of inflation, if you retired today with a 4k pension, in 25 years you would need a payment of $7,905.14 to have the same buying power that your 4k today gives you. Just something to consider when planning on retirement.
You have to factor in inflation. Someone who retired 25 years ago, their dollar is worth almost half of what it is today.
$4,000 of 1988 dollars would be worth: $7,905.14 in 2013
$4,000 of 2013 dollars would be worth $2,024.00 in 1988
At the rate of inflation, if you retired today with a 4k pension, in 25 years you would need a payment of $7,905.14 to have the same buying power that your 4k today gives you. Just something to consider when planning on retirement.