Left over a quarter million of pension payments on the table. just don't get it . so he'll get maybe 500-600 more a month in his pension.it will take 40 years to break even.
he could have retired 5 years ago , collect 50k a year on his pension and worked another job or started a sideline business if they needed the money.
worked for half wages as I see it.
Lets see in those 5 years...
-He made 50k more each of those years as compared to his pension = $250k ahead + appreciation.... If he put that excess ($4166 a month) in his 401k at 9% average return over the last 5 years = $316,573 ahead
-He saved $500 a month not paying for his own healthcare = $30k ahead
- He increased his average earnings for calculating his Social Security benifits... He knocked his early low earning years out and replaced them with his highest earning years gaining him an extra $800 a month extra to begin, and this benifit is indexed for inflation ($1675 more per month after 25 years at 3% inflation) so if he collects for 25 years....$371,000 extra
His pension monthy benifit increased $500 to $1000 a month for the rest of his life..25 years= $150k to $300k
So for working 5 extra years he will have about $867,000 to 1 million + extra for retirement.
I think he did well.