Pension estimates

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anonymous

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What should be an approximate pension balance at full retirement for a 20yr employee, knowing that the pension has been frozen for 3+ years ? The modeling tool estimates pension payouts at today’s interest rates, which are historically low.
 
















anonymous said:
But very useful if planning a move soon.
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The pension estimator on Fidelity is only useful if you plan to leave in the next 90days as the lump sum shown is for current rates & payouts when you leave are 90 days removed.
From Feb to March my pension lump sum actually went down 100k due to 1/4% interest rate increase but as of now the rate went back down 3/8% so balance back up 125k more.
Keep eye in pension interest rates on IRS website under Segmented Value Rates as that shows direction of your pension value (hint it basically can only go down now w rates going up from 0%)
 




An approx value change in your Pension Lump Sum Value is based on your balance.
$1 million then every 1/4% interest rate move affects Pension by $50k
$2 million then 1/4% effects Pension by $100k

So you can figure up quickly if rates go back to 2018 of 3.5% from current 0% rates .
3.5% is still low rate but based on 0% now, that will CRUSH your Pension to a tune of 50% less!

Now if you take monthly payments, that is NOT effected by interest rates. Only Lump Sum payout option.
So a $1 million pension now will crash to 600k if rates go to just 3.5% but your monthly payment option amount will stay the same..
If you want Lump Sum then take now while value is Max, if you want monthly payment you can leave anytime as it will be same.
 




anonymous said:
An approx value change in your Pension Lump Sum Value is based on your balance.
$1 million then every 1/4% interest rate move affects Pension by $50k
$2 million then 1/4% effects Pension by $100k

So you can figure up quickly if rates go back to 2018 of 3.5% from current 0% rates .
3.5% is still low rate but based on 0% now, that will CRUSH your Pension to a tune of 50% less!

Now if you take monthly payments, that is NOT effected by interest rates. Only Lump Sum payout option.
So a $1 million pension now will crash to 600k if rates go to just 3.5% but your monthly payment option amount will stay the same..
If you want Lump Sum then take now while value is Max, if you want monthly payment you can leave anytime as it will be same.
Click to expand...

Finally someone with common sense!
The only thing you fail to mention is the $600k invested and withdrawn conservatively or only when needed, will be close to the pension w/o the principal being touched..... and it’s there for your heirs when you die.
Another thing is the pension calculators give the total amount of money you’d receive in the perfect world. Most people won’t come close to a million dollar payout either way.....Pfizer made sure if that.
 




anonymous said:
Finally someone with common sense!
The only thing you fail to mention is the $600k invested and withdrawn conservatively or only when needed, will be close to the pension w/o the principal being touched..... and it’s there for your heirs when you die.
Another thing is the pension calculators give the total amount of money you’d receive in the perfect world. Most people won’t come close to a million dollar payout either way.....Pfizer made sure if that.
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If you have 20yrs vested in the Pension your value is 1 million plus. 30yrs its 2 million.
Might not seem like it but with all the Lecagy companies Pfizer has bought the past 20yrs, there are thousands of employees with more than 20yrs vested service that would benefit taking Pensions now at almost 0% interest rates & Max Pension Value.
 




anonymous said:
If you have 20yrs vested in the Pension your value is 1 million plus. 30yrs its 2 million.
Might not seem like it but with all the Lecagy companies Pfizer has bought the past 20yrs, there are thousands of employees with more than 20yrs vested service that would benefit taking Pensions now at almost 0% interest rates & Max Pension Value.
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You may be Pfizer legacy, but the pension value of acquired companies is no where near that much.
 




You may be Pfizer legacy, but the pension value of acquired companies is no where near that much.

The Special Olympics 8th place trophy winner chimes in again.
Broke, stupid, and a liar aren’t good traits son! Go back into the trailer, your sister is waiting and she got that eagle on waiting for you.
 




anonymous said:
An approx value change in your Pension Lump Sum Value is based on your balance.
$1 million then every 1/4% interest rate move affects Pension by $50k
$2 million then 1/4% effects Pension by $100k

So you can figure up quickly if rates go back to 2018 of 3.5% from current 0% rates .
3.5% is still low rate but based on 0% now, that will CRUSH your Pension to a tune of 50% less!

Now if you take monthly payments, that is NOT effected by interest rates. Only Lump Sum payout option.
So a $1 million pension now will crash to 600k if rates go to just 3.5% but your monthly payment option amount will stay the same..
If you want Lump Sum then take now while value is Max, if you want monthly payment you can leave anytime as it will be same.
Click to expand...
Do rising interest rates have the same effect on monthly Pension annuity payments as they do on the Lump Sum? If not, how would someone calculate the effect of rising rates on the annuity payments?
 




anonymous said:
You may be Pfizer legacy, but the pension value of acquired companies is no where near that much.

The Special Olympics 8th place trophy winner chimes in again.
Broke, stupid, and a liar aren’t good traits son! Go back into the trailer, your sister is waiting and she got that eagle on waiting for you.
Click to expand...
you don't work for Pfizer
 








anonymous said:
Do rising interest rates have the same effect on monthly Pension annuity payments as they do on the Lump Sum? If not, how would someone calculate the effect of rising rates on the annuity payments?
Click to expand...
No rising interest rates only effect Lump Sum payout. Your monthly payment option stays the same & doesnt move w rates.
 








anonymous said:
You may be Pfizer legacy, but the pension value of acquired companies is no where near that much.

The Special Olympics 8th place trophy winner chimes in again.
Broke, stupid, and a liar aren’t good traits son! Go back into the trailer, your sister is waiting and she got that eagle on waiting for you.
Click to expand...
You are so dumb & cluless.
You must be a low paid employee if you hsve 20 yrs & Pension not a million
When Pfizer was contributing before lock, it was an annual % of TOTAL COMP.
So if your salary was 150-200k in HQ, AM , DM erc or even a SHR which goes up to 195k base, then you have a nice size Pension.
You think these people taking early retirement at 50 are doing so with just a 700k Pension or something????? You are clueless dude. (Call Fidelity & ask what Avg Pension Rollover is with a 25-30yr employee- idiot.
 








anonymous said:
You may be Pfizer legacy, but the pension value of acquired companies is no where near that much.

The Special Olympics 8th place trophy winner chimes in again.
Broke, stupid, and a liar aren’t good traits son! Go back into the trailer, your sister is waiting and she got that eagle on waiting for you.
Click to expand...
IDK about your situation but pensions are contributed by the co as a % based on your annual salary (higher salary the more the co puts in)--' not every rep, manager, HQ or even pay grade is the same Pension.
Also Pfizer had a backend pension formula in that they contributed a smaller % in early yrs and larger % later year.
Last 10yrs---Year 20-30 the Pension grows 3-4x than the first 20. It is one of the formulas Pfizer had always used because the company is playing the odds most employees dont stay past 15-20yrs.

In my case, I am at 25yrs and 48yrs old. Legacy Pharmacia and if I took early retirement today with the 0% rates my Pension Lump Sum is showing 1.2million. (It is frozen of course & can only go down w higher rates-- being frozen it has grown 350k in 2yrs since 2018 w Feds lowering rates).
Several reps in my Oncology district have taken early retirement with a 1.5-2mil Pension.

Your situation might not be that much or it could be more, IDK but for a 25-30yr employee the Pension are over 1mil unless you didnt make a lot or salary & bonus in your career up until the time they froze it in 2012ish.
(Sad thing prior to freezing it, my pension projections at 65 was going to be close to 3mil but i have been in HQ & operations with high salary being a rep the past 10yrs.
 




I believe Pfizer pensions were frozen 12/31/17. Nothing beyond that date matters except the numbers of years you take it before your magic number or 65yrs old whichever is sooner. You get the max amount at 90pts or 65
 








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