Big_Hitter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Oh carp - missed the fact that the OP is 26.
Look for a generous DC plan.
Look for a generous DC plan.
Just out of curiosity, did a pension ever help determine what job you would take?
Thanks for the replies everyone, I appreciate the insight into this! Obviously the pension is only worthwhile if one can make the 20-30 year gauntlet which is why I'm contemplating it, since I'm still young enough to make that gauntlet while still making the goal of ER. Certainly a lot to think about and probably something I can't decide on until I have some concrete numbers in front of me.
It certainly seems like this community is torn on pensions for younger individuals which is a bit of a surprise to me! I'll see what comes down the pipeline and weigh in from there.
Time to brush up on your Dale Carnegie?So please no offense. But do you live in a cave? or maybe you just don't know?
I don't think it is so much torn, Greencheese, as it is apprehensive for you that it will be there for you at the end. When many here were your age 30 years ago, the idea of having your promised pension deleted was very rare. Many of these pension freezes late in a career can be brutal. Most of the accrual benefits of a pension can occur late in the career. Freezing a pension at year 20 of a 25 year full pension can be huge haircut. Not just the simple math of thinking well I will get 4/5 of the pension anyways.
But, I think you can see through other threads the people who actually have them are very happy they do (including me). Its just can you trust it to be there when you need it most as it will be completely out of your hands.
So please no offense. But do you live in a cave? or maybe you just don't know?
There is a nationwide movement funded by Billionaires to destroy pensions both public and private. A carefully designed attack on teachers,Pilots,cops,truck drivers,etc.
It depends on the employer.
Many non-profit healthcare institutions, some utilities, many unions, still some private companies, and many local/state gov't still offer pension plans to employees.
It depends on the employer.
Many non-profit healthcare institutions, some utilities, many unions, still some private companies, and many local/state gov't still offer pension plans to employees. If the OP is in one of these, then there's a chance that they will still be "fair" to employees, rather than try to finagle the rules and structure to only benefit the C-suite. However, I'd try to first find out what the funding level currently is - and be aware that there are different ways to report funding levels.
There were recent laws passed that let the pension fund use historical returns to determine funding levels in lieu of current interest rates. With current interest rates being non-existent, the funding levels are much worse off. With historical rates, the funding levels are much higher. I would probably opt to split the difference between the two to get a gauge on what the health of the pension is.
If it's currently fairly well funded (say, 88% or higher using the "split the difference method"), then I would bet that it will likely still be adequately managed and funded in the next 10-20 years, and still be a part of their retirement plan. Which, IMO, would make it worthwhile to take a chance.
From the few pensions I"ve seen, they often have a 5 year vesting schedule. if you make it at least 5 years, you vest 100% in it. If you leave after 5 years, and/or if the cash balance is small enough, you might be able to roll it over into an IRA after you leave, depending on the rules. So it could still be worth it to look into.
very true
I was always going to have a career as a librarian and I ended up with a public service job that I loved for 28 years. I was so green about my retirement that it wasn't until I was there 5 years that I found out that we had a pension and paid medical upon retirement. I could not believe they were going to pay me when I retired. The pension is still a benefit at the City I worked for but the retiree medical is pretty much gone. I was one of the last lucky few.
It's not a bad thing to stay at a job you love and retire from it. But, I admit, having a pension and medical certainly prevented me from going elsewhere. In my case it would have just been another City and I was comfortable at mine so I stayed. I had no ambitions other than to retire as a manager (higher salary and pension) which I did.
And I was freaking fantastic librarian!
Thats awesome. And with that pension check you will help fuel the economy.
That is the first thing my pension fund writes about in the quarterly newsletter is how the many millions of dollars from the pension fund is spent in state helping fuel the local economy. I do my best to spend mine and help the economy....But if I was a taxpayer without a pension or had mine taken away I would be thinking... "There is an easier way to get the money spent out in the local economy. Let me keep it and spend it myself."
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As a taxpayer I have no problem supporting the cops,teachers,firefighters,librarians,etc, because they provide a needed service in my community and they are my hard working neighbors.
They help create jobs and sustain the economy with those pension checks.
Some people are just jealous of pensions for some reason. I am happy for those with a pension.
As I am typing this a firetruck with its sirens on just drove by my house.
[...] But I agree - pensions are at risk in the future...Even while in my state, with CalPERS, the average pension is about $1250 a month. [...]
As of June 30, 2014:
Average monthly service retirement allowance, all service retirees $2,784
Average years of service, all service retirees 19.9
Average monthly service retirement allowance for state misc. members (tier 1) $2,737
Average years of service state misc.retiree 22.2
Average monthly service retirement allowance for school misc. members $1,615
Average years of service school misc.retirees 17.4
Average monthly service retirement allowance for public agency misc. members $3,006
Average years of service public agency misc. retirees 19.8