The next step in the process of pensionizing your nest egg is to add up all of your existing pension income.
As we discussed in Part One, practically every retiree in all of the areas we are looking at can count on some pensionized income in retirement. Now, recall what we mean by pensionized income—guaranteed income that lasts for your lifetime. There are two sources of pensionized income you may be able to count on in retirement: the public pension programs broadly available for all retirees and benefits from a workplace defined benefit pension. What sources of pensionized income might you already have? To help you answer this question, this section looks first at public pensions and then at private defined benefit pensions (Exhibit 14.1).
While a comprehensive review of public pension programs is well beyond the scope of this book, this chapter provides some basic information about these programs—plus guidance about where to go for more.
Public pensions are meant to provide income to retirees who have contributed, financially and otherwise, to the growth of the country. These income sources are “pre-pensionized” because they are delivered to individuals as lifetime, ...