Quote:
Originally Posted by retiredguy123
When I started as a Federal employee, I made $12,000 per year. My total cumulative income during 35 years of employment was $1.8 million. I know that because, just before I retired, I deposited $180,000 into the voluntary retirement fund, which allows you to deposit 10 percent of your total Federal career income. I have been retired for about 20 years and I have collected about $2 million in pension income, which exceeds my total Federal career income. My current pension annual income is slightly less than my highest Federal salary while working. But in a few years, the annual COLA increases will cause my annual pension income to exceed my highest Federal working salary. So, on an annual basis and on a cumulative basis, it is very possible for a Federal employee to make more money after retirement than before retirement. That is the math, and it is correct.
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Okay, *that* math may be correct.
Perhaps someone will explain increases, inflation, COLAs, and why your retirement income today, while approaching your salary 20 years ago, is still likely to be about 70% of what someone in your previous position is making today.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough
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