[quote=AN][quote=CA renter]The average CalPERS pension benefit is $2,332 per month. The average benefit for those who retired in the most recent fiscal year that ended June 30, 2011 is $3,065 per month.[/quote]
That’s pretty sweet, consider average SS benefits this year is $1,230. With that pension, with the difference between CalPERS pension and SS of $22k/year, it’s like having ~$800k NPV calculated 401k by 55 years of age assuming 30 years of retirement years. How likely do you think someone making average American wage of $39k/year today have a 401k nest egg of ~$800k?[/quote]
Again, SS is an insurance program designed to keep the elderly from being completly impoverished. SS is supposed to be **in addition to** other pension/retirement plans for those in the private sector.
DB pensions in the public sector are a form of *deferred compensation,* not insurance against abject poverty.
In order to compare the retirement plans, you have to include 401ks (along with any other retirement plans) AND Social Security, combined. Even then, it doesn’t account for the different nature of the programs — insurance/retirement/deferred compensation.
