I was shocked comparing my wife's 401K to my

[meaculpa2011]

119. As a teacher my wife was able...

to contribute to two types of enhanced benefit programs beyond her base pension. They have both done very well, mostly in equities.

When she retired we annuitized one fund and let the other ride until we are required to withdraw.

By state law, both funds are required to pay guaranteed rates. We get a greater return on the annuitized portion, but the other pays a guaranteed 7% on the fixed income side, although we were about 80% invested in variable until last month when we converted to 100% fixed. A few years ago we rebalanced to 50/50 but the variable side did much better than 7%.

Bottom line: Her defined benefit pension and her individual program pay about the same each month.

As I see it, the main value of individual plans (that we chose not to annuitize) is that when we're gone our kids will inherit the balance.

Even after we're required to withdraw, the required amount will be about half of the annual return so the fund will continue to grow.

With that said, since we were living on my earnings for most of the last thirty years, she was able to contribute about a third of her salary into these plans. And... I intend to work until they shovel dirt in my face.