I've had it...

[Teacher Terry]

the notion of a pension of that size at 50 years old amazes me...that's a nice deal for sure and makes me wonder how governments survive with that kind of obligation.

My sister has a teachers pension that is (I think) more like 42k/yr which was the max she could get. I have a private pension worth ~20k. Glad to have it.

Nevada’s pension is that high because they don’t pay into SS. If a person has SS credits from other jobs they are negatively affected by WEP. In 2010 Nevada changed many of the rules for new hires one of which is no retiree health insurance. I am not sure if they still have 30 and out at any age.

 

[wrigley]

With all that said, I'm ready to throw in the towel to do the new job. Let me have it. Tell me the truth! Am I crazy, smart, inspiring, or just flat out something else?

Brian[/QUOTE]


OK....here it comes......YOU'RE CRAZY!

I could stand on my head for 4 years if I had to.

Mike

 

[Badger]

I currently make $100,000 annually. I am a gov't employee with a pension. I've got 25.75 years in and am looking to complete 30. I'm SO sick of my job. At the beginning of my career I did something much more fun/entertaining/rewarding and I'm at the point of taking a $30k reduction in pay to go back to it. I know financially this doesn't make ANY sense, but I'm at a breaking point.

Brian

30 years ago I was given the opportunity to either take a position in a large Chemical company or a teaching position at a college for about $35k. The Chemical company would be almost 3x the salary with regular raises and bonuses and all travel expenses covered with business class flights. It was a job in which I had a great deal of experience and that I could successfully do in my sleep. The teaching position was pretty much just the salary with occasional small raises but was a much different lifestyle and something that I enjoyed in previous years.
I chose the teaching position and never had second thoughts about it. I retired 20+ years later at a final salary of about $51k. My wife was just starting a grade school teaching job with a salary less than mine. We LBM and was able to save/invest enough to easily cover retirement and more.
It was the right choice for us. I don't know how long I would have been happy staying at the Chemical company. It just wouldn't have been as much fun.

Cheers!

 

[Slim11]

Do you have a 25 and out? If so what would your pension be at 26 years? I just did this and while I have to pay for insurance, in 4 more years my pension wouldn't have gone up much at all. So , I lwft with 26 years on the job. Don't know if thats an option for you, or the calculations. Of it is its something to consider.

 

[pacergal]

What you did 25 years ago may be a very different job now. Have you talked to folks actually doing the job you envy today to make sure it is what you remember ?
I would run scenarios, check taxes, check pension etc on the difference in pay before making a decision.
In the end, do what will make you happy. Four years is not a long time, in the scheme of things.

 

[Brianeboatman]

I want to thank everyone for their feedback. You are all so wise and helpful, even the smart alecks!

 

[bobbyr]

Nevada’s pension is that high because they don’t pay into SS. If a person has SS credits from other jobs they are negatively affected by WEP. In 2010 Nevada changed many of the rules for new hires one of which is no retiree health insurance. I am not sure if they still have 30 and out at any age.

helpful clarity, thx

 

[MarieIG]

I would probably switch to the more pleasant position now, and reassess as the four year mark approaches.

 

[Cayman]

based on your info here, take the lower paying job. Life is short and you're in a decent position with your future pension and savings.

 

[freedomatlast]

the notion of a pension of that size at 50 years old amazes me...that's a nice deal for sure and makes me wonder how governments survive with that kind of obligation.

Easy. They just continue to raise taxes year after year, we all pay for it.

 

[Slim11]

Easy. They just continue to raise taxes year after year, we all pay for it.

Um, no. Lol. In a situation like this, I know because I have something similar, you do not pay SS , that means your employer, dosen't pay SS. Instead the employer makes a payment into your pension fund thats roughly the same as the ss amount. Additionally you as the employee pay into it as well. In my case I had to pay 10 percent every check into my plan. The goverment, was paying 6 to 8, percent. Very similer to how SS works. The monies both sides put in is invested, and the payments are made from that. Addtionally, if you were to collect SS because you worked and put in your quarters somewhere else, you get very little, like 300$. So , No SS, but a bigger pension. Some places have smaller pensions, and collect SS. But money is collected on both sides for this pension. If funded corectly by both sides, it is self sustaining and costs no addtional money to the taxpayer.

 

[stephenson]

Brian,

I am going to say what I would do.

1. Absolutely stay in the higher paying job
2. Actively look for a better job at the same or higher pay
3. Use every tool at your disposal to make the current job better - any and every tool
4. Did I mention stay in the higher paying job?

I have hated a few jobs - but, in reality it wasn't the job - it was the particular mix of people - or, one person (the boss). In one, with the bad boss, I helped get rid of the boss - in the others, I waited until the mix changed. In one I moved to another job at higher pay.

First rule - don't turn down the money.

 

[Brianeboatman]

Do you have a 25 and out? If so what would your pension be at 26 years? I just did this and while I have to pay for insurance, in 4 more years my pension wouldn't have gone up much at all. So , I lwft with 26 years on the job. Don't know if thats an option for you, or the calculations. Of it is its something to consider.

I get the pension at 30 years, not 25. Well, let me clarify - one is vested at 5 years but can't draw "at any age" unless they have 30 years of service. Because I'm so young (46), I need to complete 30 years to draw immediately. I have four years to go until 30. No health insurance benefits, however, my wife works for a school district and has that option for us.

 

[Brianeboatman]

Um, no. Lol. In a situation like this, I know because I have something similar, you do not pay SS , that means your employer, dosen't pay SS. Instead the employer makes a payment into your pension fund thats roughly the same as the ss amount. Additionally you as the employee pay into it as well. In my case I had to pay 10 percent every check into my plan. The goverment, was paying 6 to 8, percent. Very similer to how SS works. The monies both sides put in is invested, and the payments are made from that. Addtionally, if you were to collect SS because you worked and put in your quarters somewhere else, you get very little, like 300$. So , No SS, but a bigger pension. Some places have smaller pensions, and collect SS. But money is collected on both sides for this pension. If funded corectly by both sides, it is self sustaining and costs no addtional money to the taxpayer.

Correct!

 

[stephenson]

Age 46?

Look for better job with same retirement entity - and higher pay.

Do not be shortsighted and demote yourself.

 

[Koolau]

With all that said, I'm ready to throw in the towel to do the new job. Let me have it. Tell me the truth! Am I crazy, smart, inspiring, or just flat out something else?

Brian

OK....here it comes......YOU'RE CRAZY!

I could stand on my head for 4 years if I had to.

Mike[/QUOTE]

I hear you, but if you'd been standing on your head for, say, the past 10 years, could you do 4 more years? I think that's the question OP is addressing in his decision making. He HAS been "standing on his head" for several years and is now facing 4 more years.

I do think the nest egg may be a bit small, but it sounds like OP has the cash flow figured out.

 

[Brianeboatman]

OK....here it comes......YOU'RE CRAZY!

I could stand on my head for 4 years if I had to.

Mike

I hear you, but if you'd been standing on your head for, say, the past 10 years, could you do 4 more years? I think that's the question OP is addressing in his decision making. He HAS been "standing on his head" for several years and is now facing 4 more years.

I do think the nest egg may be a bit small, but it sounds like OP has the cash flow figured out.[/QUOTE]

You NAILED it! I've been standing on my head for 14 years, actually.

 

[gayl]

I'd downgrade in a heartbeat to get to 30 yrs in ... But then I pensioned out as soon as I could even though staying another 5 years would've gotten me 25% more. (Sis signed / left on her actual 50th birthday [emoji4])

In your case your pension will be 68k and you need 75k. Surely she takes home over 7k! I don't see a financial deficit. BUT are you sure the 'ideal job' is as great / rewarding as you remember? Sometimes we remember things better than they actually were when stressed out

 

[Surewhitey]

I had a friend leave his job once he got appx 75% of his pension & it was based on his pay vs 100% at a future age. I'm curious if you can "lock in" your current income calculation & wait the 4 years & come out ahead. Then go get another job doing what really excites you.

I left the office world in 2018 & I honestly know I am better for it. I really like 95% of my small biz venture & probably a wash financially as we travel way more than we used to without having to "ask for time off"...not to mention I get to help DD, mom & sis every year with their homes.

 

[militaryman]

If you move to the lower paying job then your HI 3 is Locked in essentially for the next 7 years with no cola according to your post #7 (no cola first 3 years of retirement and 4 years of retirement to go in which your HI 3 would stagnate)

At 3% inflation your $68,000 pension will have the buying power of $55,290 after 7 years of no cola.

I have this same issue to look forward to retiring before 62 as a Federal FERS employee. I will retire at 56yrs 10mos old and have no cola until the first Jan after my 62nd birth year. So effectively I will miss 6 years colas reducing my anticipated $41k pension to a $34,300 pension (buying power)


https://www.buyupside.com/calculators/inflationjan08.htm

 

[Brianeboatman]

If you move to the lower paying job then your HI 3 is Locked in essentially for the next 7 years with no cola according to your post #7 (no cola first 3 years of retirement and 4 years of retirement to go in which your HI 3 would stagnate)

At 3% inflation your $68,000 pension will have the buying power of $55,290 after 7 years of no cola.

I have this same issue to look forward to retiring before 62 as a Federal FERS employee. I will retire at 56yrs 10mos old and have no cola until the first Jan after my 62nd birth year. So effectively I will miss 6 years colas reducing my anticipated $41k pension to a $34,300 pension (buying power)


https://www.buyupside.com/calculators/inflationjan08.htm

The 7 years of no raise is a good point that I hadn't directly looked at. I appreciate you bringing that to my attention. Good pick-up.

 

[Slim11]

I wish we still had a cola. That was taken 15 years ago......yea its another consideration.

 

[SJhawkins]

At 46 it could be more of a midlife crisis deal many of us deal with, myself included just about the same age as you.

Now north of 50 it's different, still at the same job as past 30+ years but found my piece with just trying to enjoy the parts I Iike. However at some will shed/step down to a role that only let's me do the part I enjoy most of my job at some point, maybe!

Staying in the higher paying job, having a midlife crisis, buying a fun convertible is perfectly acceptable. I'm still really enjoying my top off experience that started in my mid 40s, now in my mid 50s. Will that change in my mid 60s, who knows but for know I'm driving it with a big 18 year old smile.

 

[ddoorn]

I understand the feeling, bureaucracy will eventually fill up your BS bucket. Tough to deal with it on a constant basis. However, you have the advantage of being close to the FI part of FIRE. So my recommendation is use that to help let that bureaucracy slide off your back. you have a good path going, I think taking the new job is fine if that helps your metal sanity. But remember the grass is always greener problem, and the new job may have just as many issues as the current one.

Totally agree. I made it over 36 years by starting a side gig where I got my real fulfillment and regarded my civil service job as my bread & butter job.

I also got very good at trimming my civil service work to just the bare essentials with no more donations of long unpaid overtime.

 

[HMMY]

Not crazy. Smart. Take the lower paying gig and hang on/out for 4 more years where you are. If it turns out to be a bad decision, you can always reassess.