What is the present value of a government pension? How does one calculate it? Trying to get a sense of weather it's worth moving over to Federal.

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Here's how I evaluated it:

If you worked 20 years and made it to gs15 step 8 in a HCOL area (which is a generous assumption), you'd get a pension payment of 37.5k/yr.

The rule of thumb for retirement withdrawals is to pull out 4% of your total savings. 37.5k/4% indicates a value of 935k.

So not a super impressive number, most white collar workers will be able to save more than that during their careers. However, the pension is safe from market fluctuations and has COLA.

I decided that I could probably save much more than that in the private sector, even with the security that FERS provides.

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You’re looking for the NPV formula when you make this calculation

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