3 Realities Of Retiring With A Pension

If you're retiring with a pension and over $1 million saved, you are part of a very small and unique group of retirees. In this episode of Joe Knows Retirement, Joe discusses the realities of retiring with a pension and talks about what you need to know so you can plan accordingly. He shares the actual value of a pension depending on how much you receive and how long you receive it, and explains a strategy you can use to save money in taxes even with a higher net worth.

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#retirement #retirementplanning #pension

Timestamps:
00:00 Intro
01:26 1. You are one of the few
03:23 2. Your retirement planning is different
10:57 3. You should consider doing a Roth conversion

Disclaimer: Since we do not know your specific situation, none of this information can serve as tax, legal, insurance, or financial advice, and may be outdated or inaccurate. The information comes from sources believed to be reliable but cannot be guaranteed. This content is prepared for educational purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Peak Retirement Planning, Inc. is a Securities and Exchange Commission registered investment adviser and able to offer advisory services in Ohio and in other states where registered or exempt from registration.

[RetJetFxr]

Debt free homeowner here with an $80K military pension and VA disability each year, much of which isn’t taxable. I’m 56 and CHOOSE to drive a school bus part-time, which is another $40K+. Tricare medical too, so costs are low. Feeling good!

[philliphinkle]

I’m lucky enough to have a pension from law enforcement with medical paid for for life. I realize how fortunate I am but my career took a toll on my life. I feel I earned every penny I get

[sandrahoward]

Thank you, I retired from the military in 2009 at 42 years old. I started a Roth in 1999 and converted two 401ks into a Roth. Today, I’m very grateful, but realize health is the most important thing.

[Aldo-dz]

Retired with a 6K a month pension.Unfortunately no COLA. But I’ll take it. Wife gets 1/2 if I go first. Maxed out SSA @ FRA. I was able to self fund a 401K that’s just over 7 figures. Zero debt. Same spouse, same house, same job worked for us. I worked as a high voltage electrician for a local utility company. Listened to my dad 46 years ago. My 2 sons do the same job I did and so far it’s working out.

[AlaskaErik]

Between two pensions and Social Security I pull in over $100, 000 a year. I can live comfortably on that. My wife pulls in about $60, 000 with her pension and Social Security. So we're set for life. If my wife dies first I will get her SS benefit, which is more than mine. If I die first she gets 55% of my military pension. So we're both set as the surviving spouse. And neither of us will have any debt.

[TeslaRules]

For many in Goverment jobs, a pension, along with some job security, was the "Carrot" to except lower pay for decades compared to private sector. We live in a state that does not tax retirement income, so there is a guaranteed lower tax bracket for us from all our retirement income sources.

[lakerfam]

Finally after watching a thousand videos this is pretty much hitting my situation. Thx Joe!

[Meadowlark]

Very good info! We just found you today and you have reinforced all that we have come to learn in the years of our retirement. We do have a pension of about $25k per year but have not taken Social Security benefit yet. We live on the pension and some funds from our retirement account. Medicare was sort of a 'big' hit for us as our health plan was almost free and lasted into retirement until age 65, but no complaints there. Roth conversions were learned about after a few yrs. of retirement so we got a late start doing that; about 2/3 through that process doing it a bit at a time. Anyway, you have new subscribers here in the Midwest/Great Plains (who are NOT millionaires)! Looking forward to hearing more from you!

[amytuttle]

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments

[onoff]

Retired Firefighter after 30 years, six figure CALPERS pension and full medical for life with annual COLA.
And now I get my full social security with the SS fairness act.

[michaelwise]

I retired from the state of Texas at 53 1/2 years old, after taxes and deductions I receive $6, 100 a month. i will receive this amount for the rest of my life. Yes i don’t receive any annual increases but I have zero debt. I considered taking my Social Security at 62 and investing that money. No one knows how long they will live. I just turned 60 years old.

[alfredyost]

I happen to be one of those lucky ones. I will have a pension, a 401K and also Social security. I will also have medical benefits too. I do not have a government job. My company no longer offers these benefits to new employees. I am grandfathered in. Thoughts?

[austinbar]

The 2.5% COLA for 2025 provides a modest increase in benefits for Americans receiving Social Security and SSI payments, helping to offset the rising cost of living and inflation. This increase offers essential financial relief for vulnerable populations like retirees. But on the contrary, the avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?

[vernshird]

I'm out 7/1/26 and my inflation protected pension will be about $4k/month to start and will have an annual COLA. I do have a 401k, a 457b, a small ROTH IRA, and I'm debt-free. Crunching the numbers, my retirement date is based on me never working again and living to age 100. Logic being that if I pass sooner or if I work p/t in retirement, the numbers still work. My biggest concern in retirement will be my IRMAA strategy. My wife will still be working so I need to "appear poor on paper" for that 2 year look back period. It's a nice problem to have, but it's still a problem.

[horiv]

Just found you! I’ll have two pensions in about a decade, and while I won’t have a million in my TSP, I appreciate the conversations you’re having for me to have sound advice and learn the best way to save on taxes in the future.

[jpdriver]

When I chose my profession, I never thought about the power of a pension. I got lucky. I watch a lot of retirement planning videos, and it is not lost on me how much more difficult it is to plan for long range costs without a pension. We are aggressively doing Roth conversions over the next several years to get ahead of RMDs.

[shakes]

Fast forward to minute 4, you’re welcome

[jimmywalters]

RMD's don't start until age 75 for anybody born in the 60's ... my advice if you lots of money in a 401k plan... spend it in your go go years 62-75 . I myself have 1 million in my taxable 401k plan...will get a Federal pension and Social Security of appx $60, 000 per year. at 62.. and will spend down my 401k for 13 years and my income will still be less than what I'm making now. I also have some funds in a ROTH IRA but won't spend that down in retirement until I use my taxable money. I won't do ROTH conversions .. would rather deal with it later if I really have to (meaning taxes).

[billykellum]

Thanks Joe for another great pension retirement video. It is much appreciated. 👍

[blongshanks]

I’m in that weird job situation where I will have a Pension paying about $30, 000 a year, and I also have a 401k with a 6% match. I’m trying to retire at 62 and not have to worry about finances again.