Quote:
Originally Posted by chedder
Let's not forget that every defined benefit pension plan of $50,000/year for life is the equivalent of that person having minimum $1,250,000 in savings (using the aforementioned 4% rule)
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Edit sorry, I misremembered the 4% rule but the 4% rule does account for inflation while a defined benefit does not.
A person using the 4% rule would be withdrawing much more than $50,000 a year after 30 years of post-retirement living while the defined benefit pension would still be a flat $50,000.