Integrating Pensions into Retirement Planning: Equivalence & Savings Goals

Retirement planning becomes more complex for individuals who have defined-benefit pensions in addition to or instead of traditional 401k savings. A common point of confusion is how to factor a pension into standard retirement savings rules of thumb (e.g., 'save 3x salary by age 40') and how to determine the 'equivalence' of a pension compared to a self-funded retirement account. This highlights a need for guidance on combining different income streams for a comprehensive retirement strategy.