Heading Out

Seeking the winds that help to sail on Shakespeare's tide.

Thursday, September 02, 2004

Being nosey

In the last post I talked about the benefits of retirement and had also commented at Dr. Crazy's place . And since I could not help but noticing that some folks are younger than others (grin) I thought I would add the results of a little calculation. For those interested: If you are 25 and start at a university with a starting salary of $50,000 with an assumed raise of 3.5% a year and stay there until you are 65. If the retirement calculation is 2% times no of years at the average of the last 5 years salary, you will end up earning $197,963 in your final year and will retire with $148,015 a year or 75% of your final salary. If you were to move every five years, with a $10,000 raise each move, but otherwise with the same raise increment and the same retirement calculations, then you would retire after earning $286,362 in your last year, but with a retirement of only $114,586 or about 77% of what you would have if you stayed in one place.

If you are now 30 the numbers are final salary $166, 680 retirement income $109, 047 or 65% but with moves final salary $240,834 but retirement of only $88,640.

At 35 final salary is $140,340 with a retirement of $78,698 as against the five year move option of a final $201,158 but with a retirement of only $66,960.

Obviously I had nothing to do this morning, other than have a Personnel meeting, another student showed up to interview me, this one for an hour (is the word out I am a fossil ?) a short article for a newsletter, and now to put sound on the second of the lectures to be studied on Blackboard in my absence. Then I have just to cost another proposal and attend the first student society meeting of the year as a benevolent presence, and I can have the rest of the day off.


At 9:15 PM, Blogger Mel said...

This is somewhat consoling. Except of course for those of us in fields that don't start at $50,000. From the last time I saw our publicly-available salary records (a state U), only a handful of Full Profs in my dept make 50K or more, and mostly because they've gone into university administration at one time or another. We don't get raises every year, either.

I mean, of course the benefits of retirement pile up no matter what your crappy starting salary. But I had to just point out that it's potentially even bleaker for some people who consider hopping around to different jobs.

though isn't tiaa-cref portable? as are some of the others.

At 11:42 AM, Blogger bitchphd said...

Wow, that is *really* interesting. I'd not broken it down before. It sort of makes me feel more justified in trying to hop jobs right away, in the hopes that I can settle down faster; it also makes me feel really, really bad about having taken as long as I did to finish my diss, so that I'm already in that last group there, the 35+.


At 4:04 PM, Blogger Heading out said...

If someone can give me some bounding conditions I will be glad to run any combination when I come back.

At 9:03 PM, Anonymous retire abroad said...

Heading out, I love this site. I love odds and ends too.


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