<p>" I know someone who retired in his fifties with 35 years of service and had a retirement salary 80-90% of his paycheck, which would work out to well over a million dollar annuity."</p>
<p>If it was 35 years, it was most likely 70% of his paycheck. And if you assume a payout of 4% a year, a million-dollar annuity is only $40k a year. (which seems about right for a 35-year schoolteacher.)</p>