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Chapter 5. Developing Your Retirement Pl... > Eight Steps to Financial Independenc... - Pg. 54

Developing Your Retirement Plan 54 You had a pension:If you had a pension with a prior employer, they should have provided you with an estimate of your pension benefit payable to you at age 65. You should have received this state- ment shortly after leaving that job. Terms to Know Normal retirement at most companies is age 65. If you start collecting your pension before then, it will be reduced for early retirement. This is called, logically, an early retirement reduction . You can determine this reduction by asking your employer for the details or reading the pension plan's SPD (summary plan descrip- tion). If you will receive a pension benefit from a prior employer, put this amount in box E. If you won't have any pension benefit, put 0 in box E. Now subtract it from your inflation-adjusted goal. Put the difference in box F. Step Three: Determine the Amount of Money Required to Achieve Your Income Goal Now we need to calculate the total amount of money we will need to have saved before we retire.