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Chapter 5. Developing Your Retirement Pl... > Eight Steps to Financial Independenc... - Pg. 53

Developing Your Retirement Plan 53 Figure 5.3. So, we take the retirement income John needs, $27,224 (in box D), and we multiply it by 2.77, as shown in Figure 5.4. John's inflated retirement income goal for inflation is now $75,410. Figure 5.4. Finally, we then subtract any pension income expected from former employers. That seems easy enough. But how do you estimate your defined benefit pension income? As we discussed in Chapter 1, "What Is a 401(k)?" most pension plans are based upon your years of service with the company, your earned income, and your age when you retire. Most employers will provide an annual pension statement. Here's how you get your number: You have a pension:If you have a pension where you currently work, ask your employer to provide a "pension benefit estimate" at your preferred retirement age. (Put this number in box B of Step One.)