I've had it...

[Brianeboatman]

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.

I have $535,000 saved in retirement accounts/savings. My pension will be approximately $68,000 per year (in 2027 @ 30 years). My annual spending is approximately $75,000 per year. I will continue, with my wife's help/work, to save $18,000 per year into retirement accounts. Our house is NOT paid off, and I have about 25 years left on the mortgage.

My wife will continue to work after I retire in 2027. She makes about $35k per year and LOVES her job. Yeah, I'm jealous! She will will continue to work to maintain insurance and keep money coming in, too. We are both 46 years old.

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

 

[twirler]

Okay take a deep breath.

Done? okay good now focus.

I used to do government work I understand the insanity of it. Lucky for you given what you've explained so far, congrats! You're retired. You were already done. I hear by give you permission to take the pay cut and do the work you want. Defer the pension if it helps, but people have retired on far less than you! (myself included) confer with your spouse of course, consider paying off your mortgage before taking the lower paying job, but honestly you are fine, just call it. They got those pension handcuffs on you, better use it now least they decide next year they stop offering that type of retirement.

Sincerely,

~T

 

[Brianeboatman]

I should have indicated that if I quit now, I have to wait 9 years to draw my pension. If I continue working in the high or new lower paying job, I get to draw in 4 years. I'm committed to staying in the retirement system for the next four years, just not in my current position.

 

[Texas Proud]

Are you taking into account the lower paying job in your pension calculation?


Is your pension indexed?


If so, then it looks good to me on a quick look.

 

[38Chevy454]

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.

 

[Alan]

I was in a similar position but was able to switch jobs and location within the same company for the last 2 years to enable me to retire with a reduced pension at 55, but with a retiree health insurance scheme that was very attractive. (This was before the ACA)

Good luck with whatever you decide.

 

[Brianeboatman]

My pension is based on my highest 36 consecutive months. I've established those years at this point which makes my pension approximately $68k per year. Yes, there's a cost of living increase. Here's how it works...

After retirement, the first three years I'll receive ZERO increase.
In years 4, 5, and 6 of retirement, I'll get 2% per year.
Years 7, 8, and 9, I'll get 3% per year.
Years 10, 11, and 12, I'll get 3.5% per year.
Years 13, 14, and 15, I'll get 4% per year.
from then on I'll get 5% per year OR the CPI inflation rate at a max of 5%.

 

[zl55lz]

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.

I have $535,000 saved in retirement accounts/savings. My pension will be approximately $68,000 per year (in 2027 @ 30 years). My annual spending is approximately $75,000 per year. I will continue, with my wife's help/work, to save $18,000 per year into retirement accounts. Our house is NOT paid off, and I have about 25 years left on the mortgage.

My wife will continue to work after I retire in 2027. She makes about $35k per year and LOVES her job. Yeah, I'm jealous! She will will continue to work to maintain insurance and keep money coming in, too. We are both 46 years old.

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

I would also look into how any decision will affect continuing FEHB or State or whatever gov't level you are--gov't health insurance--into retirement scenarios.

 

[dixonge]

I quit my job two years before I vested in my pension. The next few years was fun, but we lived off of savings until it was all gone. *then* I finished my vesting by working two more years, and then my wife's pension kicked in and we went back on the road.

It is not a plan I recommend to any one. But quitting your existing position to transition to another more sane position, even at lower pay? That's a no-brainer. Whatever you need to do to maintain sanity until your pension is ready is worth it.

 

[Dtail]

So we all appear to be on the same page to wait it out for the 4 years.
As for taking the lower paid job, I would make sure it truly is the same job as in the past; can you take the position as you wish and who would be your new boss?

 

[ivinsfan]

Are you bored with West Wendover? Wendover is kind of a different beast...you started with this at 20 years old...


People get sick of jobs it happens but honestly you sound a little woe is me....why are you at a breaking points with a 100K job that gives you a gold plated pension. Take a deep breath and a little introspection might be a good thing. Might be something else going on here.

 

[Brianeboatman]

I'm no longer in West Wendover, though I loved my time there. I'm in the Nevada State pension which is for City, County, and State employees.

 

[Brianeboatman]

I quit my job two years before I vested in my pension. The next few years was fun, but we lived off of savings until it was all gone. *then* I finished my vesting by working two more years, and then my wife's pension kicked in and we went back on the road.

It is not a plan I recommend to any one. But quitting your existing position to transition to another more sane position, even at lower pay? That's a no-brainer. Whatever you need to do to maintain sanity until your pension is ready is worth it.

I won't be quitting the system, just my current position. I don't want to shoot myself in the face, just the foot.

 

[Brianeboatman]

So we all appear to be on the same page to wait it out for the 4 years.
As for taking the lower paid job, I would make sure it truly is the same job as in the past; can you take the position as you wish and who would be your new boss?

My new boss would be a guy I've known for 20 plus years. He's a good and fair person. It's not the boss I'm quitting, either. It's the job. I'm just tired of the current position.

 

[njhowie]

I think you should move back to the lower paying position that you enjoy to be able to make it the next 4 years. It's not throwing in the towel and quitting, just making it more enjoyable. I wouldn't look negatively on the lower salary - it is enabling you to get to the goal of walking away with the 30 year pension.

If you enjoy what you're doing, the time flies by. If you hate what you're doing, it seems like forever just to make it through another hour.

 

[Major Tom]

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.

I have $535,000 saved in retirement accounts/savings. My pension will be approximately $68,000 per year (in 2027 @ 30 years). My annual spending is approximately $75,000 per year. I will continue, with my wife's help/work, to save $18,000 per year into retirement accounts. Our house is NOT paid off, and I have about 25 years left on the mortgage.

My wife will continue to work after I retire in 2027. She makes about $35k per year and LOVES her job. Yeah, I'm jealous! She will will continue to work to maintain insurance and keep money coming in, too. We are both 46 years old.

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

One (maybe not so) small point. You say,

"I have $535,000 saved in retirement accounts/savings."

and

"My annual spending is approximately $75,000 per year"

I take it that your $535K saved is for your joint use, and that the figure of approx $75K spending is a joint figure for both of you? I'm assuming you mean joint spending, but just wanted to make sure, as some couples completely separate their finances.

 

[Brianeboatman]

One (maybe not so) small point. You say,

"I have $535,000 saved in retirement accounts/savings."

and

"My annual spending is approximately $75,000 per year"

I take it that your $535K saved is for your joint use, and that the figure of approx $75K spending is a joint figure for both of you? I'm assuming you mean joint spending, but just wanted to make sure, as some couples completely separate their finances.

Yes, jointly my wife and I spend $75k per year, pre-tax.

 

[Route246]

You really suffer with a very nice problem to have, very similar to high-net-worth folks complaining about taxes and AMT. Congratulations.

You are not going to get much sympathy from the vast majority of the population but that goes with the territory. You are also quite young at 46 to be dealing with these decisions, again a very nice problem to have because you have options. I dealt with a difficult situation in my career (albeit in the private sector) that lasted 5 years, the longest 5 years of my career, but realized that my compensation and mortgage at the time necessitated staying in that role. I deflected much of that frustration by focusing on what was good about my role and just toughing it out with what was really bad about the role. You may have nothing good to focus on which is unfortunate if so.

You've put in 25+ years of vesting to get where you are. You need to deal with the final 4 years if I read things correctly. My only advice is assess carefully your alternative and try to think 10 or 20 years in the future. You will have some future remorse in any decision. Try to minimize that future remorse as best you can assess today. If there is little or no chance of saying 15 years from now, "Gee, I really blew it!" then go for it.

 

[Brianeboatman]

You really suffer with a very nice problem to have, very similar to high-net-worth folks complaining about taxes and AMT. Congratulations.

You are not going to get much sympathy from the vast majority of the population but that goes with the territory. You are also quite young at 46 to be dealing with these decisions, again a very nice problem to have because you have options. I dealt with a difficult situation in my career (albeit in the private sector) that lasted 5 years, the longest 5 years of my career, but realized that my compensation and mortgage at the time necessitated staying in that role. I deflected much of that frustration by focusing on what was good about my role and just toughing it out with what was really bad about the role. You may have nothing good to focus on which is unfortunate if so.

You've put in 25+ years of vesting to get where you are. You need to deal with the final 4 years if I read things correctly. My only advice is assess carefully your alternative and try to think 10 or 20 years in the future. You will have some future remorse in any decision. Try to minimize that future remorse as best you can assess today. If there is little or no chance of saying 15 years from now, "Gee, I really blew it!" then go for it.

I certainly recognize that we've been highly blessed. We've also put in a lot of hard work to save. We've denied ourselves as many of our friends purchased new vehicles, bigger homes, went on vacation, etc.

I also recognize that this pile of cash will need to last me the rest of my life. We aren't terribly big spenders, IMO, but will be greatly assisted by our pension. My wife will draw a pension, too, eventually. She works at a school but only has about 7 years in. She'll have to wait until she's 62 to draw.

I'm 90% convinced that I need to switch to the more pleasant position even though it pays $30k less. I just needed confimation that I wasn't too far off base. Looks like, based on the comments, I should be good to go.

 

[enjoyinglife102]

No brainer to me. Why spend years being miserable when you can make the numbers work and be happy?

 

[bobbyr]

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.

 

[SnowballCamper]

My bitterness really increased the last couple years before retirement from active duty army...I can tell you that the bitterness goes away after a few years of pension checks... but you do need to keep your sanity above all else. Good luck.

 

[aaronc879]

If it doesn't reduce your pension then I don't know why you are even considering what to do. The obvious choice is to take the job that you will like better, you won't miss the salary, you don't need it. If your pension is set at $68K/yr COLA'd starting at age 50 then you are good. You can easily coast for the last few years.

 

[zl55lz]

Someone might have already mentioned this, but if you already have your high 3 years locked in for your pension calculation, have you run the numbers to see what your tax withholding difference will be with a reduction from $100K to $70K while still working? Also, would your pension increase with higher salary increases in the next 4 years?

It could be a significant enough tax difference to where your net salary on $70K isn't as much less than on $100K as one may think? And, with the $30K more per year, how much can you reasonably save over the next 4 years and will that really make a difference in the long range scheme of things? Only you can make such decisions based on your situation. My opinion. And, I personally would carefully listen to my spouse.

 

[mystang52]

Before jumping to that lower paying job, do your best to objectively assess you'll enjoy it. What it once was may not be what it is, now. "Greener grass"?