Defined Pension Plans are very valuable

Hi:

Many people in government-type jobs such as teachers, public utilities,  and government workers at all levels have a defined pension plan. That means they will get a specified amount for the rest of their life when they retire. Although that amount may be indexed and go up, it will not fall below the defined amount.

What many people do not realize is how valuable this pension plan is.  Say, for example, you are guaranteed $50,000 for life.  What kind of investment portfolio would you need to generate these returns? At 5%, you would need $1,000,000 in your retirement savings plan. 

It has been stated that the value of a teachers' pension is $1,200,000.  This assumes, of course, maximum contributions for the requisite number of years.  People who worked less would of course receive less but the equivalent value remains. 

A valuable asset, in my opinion.

M.