Pensions are generally not included in your net worth, but do play an important role in retirement planning.
Future income streams, such as defined benefit pension plans and Social Security, primarily impact your retirement planning by lowering your projected income needs in retirement.
These future income streams allow you to withdraw smaller amounts from your portfolio in retirement as a portion of your living expenses will be covered by your pension and/or Social Security.
You can always include your own pension contributions in your savings rate, and may include your employer pension contributions if you make under $100,000 (single) or $200,000 (married).
Check out the video below for more information about how your pension factors into your retirement plan!
