Hello everyone,
My wife and I are lucky enough to have defined benefit pensions with cola but I’ve been trying to supplement those in case I’m forced to retire earlier than anticipated. If we both work until we’re 60-62 the pensions can cover all of our current income, but the physically demanding nature of my job makes me think I may have to draw my pension at 55 (I have CalPERS 2% at 55). I was trying to put aside 15-20% of gross income but looking at the numbers it’s just not possible if I don’t count the pension contributions that are deducted from our pay. We already live a relatively sparse lifestyle so any further reductions in our standard of living would probably entail a divorce. Do you include your pension contributions towards whatever your goal is?
Thank you