ABBOTT PENSION RETIREMENT
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Be thankful you have a pension and be quiet with your stupid questions.
I put in 46 years, yes that's correct as I started at 19 when I left my parents home. So I will be retiring in July and my numbers from HR are $12,537 a month as a SLA (single life annuity). I plan to take the 66% survivorship option so my wife (16 years younger than me) will collect when I go. With the survivorship option I will get 84% of $12,537 or about $10,531 per month ($126k a year). When I go wife gets 66% of that or about $6,950 a month. As I am now over 65 I am on Medicare so I have a supplement for myself. Wife is age 49 so I will pay her coverage at about $300/ month after company contribution. I also have SSI but will hold off until maybe 70. Also the IRA etc which will provide maybe $75K a year when I opt to collect at 70 at the RMD level.
Hope this helps. I am a DM of long term tenure. This is a great company.
Yes Abbott is an excellent old school company. Wish it had lasted longer for me but it got real political about my ninth year. At least I made it to 11 years. My pension is a bit over $2K a month but most people get no pension. In fact it's about $700 more than the average SSI payment. My claim to fame were stock options my wife and I made at startups.
Sounds like the Abbott retirement benefits are solid and should remain that way for a while. Chances are our kids will never get anything like this.....
Almost half a century at the same company. Amazing.
the old defined benefit plans either are gone or suck. Agree yes the next generation had better save a lot in their 401k and IRAs and even a pension gets no COLA so its worth less and less
28 years at Abbott. Retired at 55. Watched stock split 6 Times. Best were the 2 for 1 in June 86, June 90, June 92 June 98 ...Then in Jan 03 it was a 10,000 to 4798 split .... Same in May 04 except this was 10,000 to 9356 split. I Had 7 figure vested 401k and retirement annuity 15 years into tenure.Theres NO WAY any newbie or snowflake will survive 25-30 years at ANY Pharma company. In this day and age, it's gauged in months ......not years or decades. LOL
got a chuckle out of this post, you actually put in 46 years ?? wtf you must be a glutton for punishment . I retired at 60 with almost the same pension ( about 11.5k a month) as you got plus all the stock as another poster mentioned.
Interesting gorilla math, not saying that what your calculating is impossible. I'm a 30 year retiree, most in mid to upper level management. Great pension and 401K, no complaints, but yours seems a bit off the hook. Just a couple things to point out... your pension and percentage toward your medical premium are frozen at 35 years of service, still accumulates but doesn't grow. Your 401K account must be in the $3MM range (base on 27.4% draw per government RDM Chart starting at age 70), $75K is a very unlikely number. I've always contributed the max toward my Abbott and former employers 401K (including to Bush's "Catchup Account"), with access to the same middle of the road funds that Abbott offered, I know and understand the expected return. Not saying you're overstating your wealth, just saying you're a good dreamer. And it's you that counts, not the cafephrma faithful :>
Enjoy your retirement!
Very good. Not many can do this. I got lucky during the tech bubble 20 years ago. Options at $5 sold for $60. Made a lot and saved every penny and watched it grow. The days of 30 years at a company, pension and gold watch were always a bit of a fiction and are now long gone for most. I know guys getting union or local government/state pensions and they are bitching that the benefits are being reduced.
The old lifers at Abbott did well. I imagine at some point in the near future Abbott will stop this gravy train for incoming employees. I know there have been discussions to this effect.
thank you. yes the RDM distribution was an estimate from my Financial Advisor, and its a guesstimate. Right now I just turned 66, and have to start the 401K by year I turn 70 1/2. So that's 4-5 years out. I currently have $1.4M in the 401k right now which my advisor believes can grow to $2M which would yield about $75K RDM. He may be too optimistic, though . I am actually much more conservative than my FA so I appreciate your comments. BTW he gets a cut of 0.9%/year of all my assets in the account so he wants it to grow.
Nice response, and more realistic. At any rate, you have done well and should be proud of your nest egg. Congratulations! All FA's take a commission and are well worth it if they do a good job. Plus all your assets/investment are in one place, easy to access, and easy to monitor the rabbits from the turtles. His fee of .9% is well with the ballpark. Ride the wave my friend :>)
I don't have a financial advisor (do have a tax accountant) and it sounds like your FA is using the 4% rule.
I retired just a few months ago and my wife is a year behind me. What I am doing it tracking all expenses to see exactly what I spend so I can better judge how much I need. I have read that some FAs suggest the "3.2% rule" for a more conservative withdrawal rate. That is my goal...
Actually the first distributions my FA looked at are based on the RMD (Req. Min Distribution). At 70, it is about 3.64% which is the reciprocal of the life expectancy used by the IRS (27.4 yrs). The RMD increases each year. So if you only need to withdraw at 3.2 % to live on the balance can be reinvested, etc. Of course the RMD only takes effect at age 70 and any earlier distributions are as required by you.
Best wishes for your retirement and enjoy life !
Actually the 401K RDM percent decreases each year.
The RMD is there so the feds can get their tax money.
Another IRS cheat is the interest on some annuities. If you put $50K in an annuity and at retirement it's worth $100K the initial distributions are interest. You will be taxed on first on the $50K which was earned. The next $50K is principle so the only taxable portion is the interest earned during the distribution period.
The government wants it's share before you die.
Another IRS cheat is the interest on some annuities. If you put $50K in an annuity and at retirement it's worth $100K the initial distributions are interest. You will be taxed on first on the $50K which was earned. The next $50K is principle so the only taxable portion is the interest earned during the distribution period.
The government wants it's share before you die.
QUOTE="anonymous, post: 5845108"]God Bless Miles White. My seperation package was icing on the cake. You finiancial gurus on here better check your facts. Whoever said they're getting $11K Month is dreaming. NO DM or RM Would get even half of that amount and the time frame parameter you claim are quite funny
From*****to***** or until you secure other full-time employment, which ever occurs first, you will be on a Pay Continuation Leave (“PCL”). You may not convert your PCL to any other type of leave of absence (including, but not limited to Short Term Medical Leave and / or participation in the Abbott Long Term Disability Plan). During your PCL, Abbott will continue to pay your current salary of $332,100.68 (less applicable deductions and amounts it is required by law to withhold).
You will inform Abbott by contacting the Corporate Vice President of Global Human Resources within seven (7) days of accepting other full-time employment. Should you fail to do so, Abbott is relieved of any obligation to make further payments to you hereunder and you agree to promptly remit to Abbott any amounts received from Abbott for the period of time beginning with the date you began full-time employment forward.
Have fun kiddies [/QUOTE]
From*****to***** or until you secure other full-time employment, which ever occurs first, you will be on a Pay Continuation Leave (“PCL”). You may not convert your PCL to any other type of leave of absence (including, but not limited to Short Term Medical Leave and / or participation in the Abbott Long Term Disability Plan). During your PCL, Abbott will continue to pay your current salary of $332,100.68 (less applicable deductions and amounts it is required by law to withhold).
You will inform Abbott by contacting the Corporate Vice President of Global Human Resources within seven (7) days of accepting other full-time employment. Should you fail to do so, Abbott is relieved of any obligation to make further payments to you hereunder and you agree to promptly remit to Abbott any amounts received from Abbott for the period of time beginning with the date you began full-time employment forward.
Have fun kiddies [/QUOTE]
[/QUOTE]
Don't know about the others out here, but after a bit over eleven years (Abbott rounded it to twelve) I get just under $2K a month. Only others I know who get a pension worked for government. I am happy with it...pays some bills.
$12K a month does seem like a lot. Requires a very high salary.