There are significant differences between paychecks and pension checks, and the ‘work or retire’ decision should be based on a bottom-line comparison. Most DB plans will have some form of reduction for retiring before a certain age, like 62 or 65. For our example, they are single, and we will apply the average state income taxes. Obviously, we made $1,700 less on the top line, but income taxes were less because income was less. In the former (good) market environment, the number of DB plans were falling.

Source: Forbes May 30, 2020 10:52 UTC