that, and inflation vs opportunity cost in index fund growth or buying a home sooner.
Do you get or will you get a pension?
- Thread starter ZZman
- Start date
Yes. The only real benefit of a pension was that people mostly don't save on their own - so it forced the issue. Also you could not outlive your benefits.
If your disciplined you would definitely be better off saving the extra you make somewhere else. The side benefit is if you die young you leave something for your heirs, which a pension doesn't. However hopefully you live to a ripe old age and get to spend it all.
Owen Lucas
$100 Site Donor 2023
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I thought Chimmie worked for the rail road?
Doesn't he get that sweet RR Pension?
I sure he can throw you some spare change.
- Joined
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Chimmie is rail roading me alright
Nope.
You know, I used to want/like private company pensions. But now after seeing many people cash out and/or stick it out at a company they hated, I’m not sure pensions are actually better than a 401K or IRA. Most people don’t stay with a company for 30 years anymore. I’ve been with my company for almost 20 years and that’s unheard of among my millennial cohort. People move around a lot now so being able take your retirement with you is a big positive. Also heard of a few horror stories of people getting laid off a few years before retirement - no way that was intentional cost cutting, right? Government pension still make a lot of sense, but I’m not sure private ones do anymore.
You know, I used to want/like private company pensions. But now after seeing many people cash out and/or stick it out at a company they hated, I’m not sure pensions are actually better than a 401K or IRA. Most people don’t stay with a company for 30 years anymore. I’ve been with my company for almost 20 years and that’s unheard of among my millennial cohort. People move around a lot now so being able take your retirement with you is a big positive. Also heard of a few horror stories of people getting laid off a few years before retirement - no way that was intentional cost cutting, right? Government pension still make a lot of sense, but I’m not sure private ones do anymore.
I will get one when I retire, plus I have a very healthy 401k and IRA from multiple companies. The only reason I won't retire at 59 like I want to is we adopted 3 kids late in life (also have 3 biological and another adopted, all over 20 years old) and they will need assistance with school, should they chose to go to a university. My last child will be 18 when I am 63. I am 49 now.
I do hope my company offers the "old person" golden parachute that seems common these days. It seems if you are in your mid 50's you get offered a severance to move on. I'm not sure how legal that is, but this isn't the first company I have worked for that seems to operate that way. My job after that will be something fun, if I am so lucky.
I do hope my company offers the "old person" golden parachute that seems common these days. It seems if you are in your mid 50's you get offered a severance to move on. I'm not sure how legal that is, but this isn't the first company I have worked for that seems to operate that way. My job after that will be something fun, if I am so lucky.
Patman
Staff member
At the company that I worked at before I retired they had a great salesman who was promised a pension when he retired early around age 60. The problem was that the original owners sold the company and the new owners didn’t honor that promise. I’m not sure why he didn’t pursue legal action but I know that after he retired and moved to Myrtle Beach for six months, he came back to work again. He only stayed with the company for about a year and then went elsewhere. He’s still working today
I haven’t heard anything quite that bad. That’s really sad. I know a few people who had their positions eliminated shortly before they reached the required service time to earn the retirement. Most within a year or two. Also sad. Honestly unless you just don’t know how to save money or can’t keep yourself from touching it I don’t see how it’s better than a 401K or Roth. Gov’t pensions excluded.At the company that I worked at before I retired they had a great salesman who was promised a pension when he retired early around age 60. The problem was that the original owners sold the company and the new owners didn’t honor that promise. I’m not sure why he didn’t pursue legal action but I know that after he retired and moved to Myrtle Beach for six months, he came back to work again. He only stayed with the company for about a year and then went elsewhere. He’s still working today
Also like I mentioned early I know several who took the cash out option and reinvested it. At that point it’s treating a pension like a 401K anyways.
Pension, 401 and ssi 13 years retired
Please allow me to add that I did not choose my profession because of the pension.
I became a fighter pilot to become a fighter pilot. Full stop. No other consideration.
The pay was not that great, while the personal risk was extraordinarily high, and the job was very difficult to get.
Later in life, as I look back on things, yes, I could’ve gone into more competitive industries in which I would’ve earned a lot more money, and I would be better off financially, having earned that money and invested it, than I would be getting the pension.
Please allow me to point out that I’ve been an investor for the past 40 years, it’s just that I couldn’t invest much as a young fighter pilot because they didn’t pay us much.
So, don’t envy my pension, I paid for it, I earned it.
I became a fighter pilot to become a fighter pilot. Full stop. No other consideration.
The pay was not that great, while the personal risk was extraordinarily high, and the job was very difficult to get.
Later in life, as I look back on things, yes, I could’ve gone into more competitive industries in which I would’ve earned a lot more money, and I would be better off financially, having earned that money and invested it, than I would be getting the pension.
Please allow me to point out that I’ve been an investor for the past 40 years, it’s just that I couldn’t invest much as a young fighter pilot because they didn’t pay us much.
So, don’t envy my pension, I paid for it, I earned it.
Bravo! You are a credit and an asset to BITOG, to America and to me.
That’s kind of you to say, Jeff. Thank you.
I’ve reflected on the decision a couple of times.
Bottom line - I got to do something very rare, and I don’t think I would trade that experience for more money at this point in my life.
4wd
$50 site donor 2026
Well said - Said well … Thanks for your service …
Public service should be rewarded with a pension in my opinion. Which is why I specifically caveated government as an exemption from my comments about pensions not being better than a 401k. If you dedicate your life to serving the community, state, or country, which rarely pays well, you should be rewarded with a pension.
You know, now that I think of it, if I had stayed in the military I’d be retiring this year. Wow. How time flies. Glad I got out though as it wasn’t the life for me.
You know, now that I think of it, if I had stayed in the military I’d be retiring this year. Wow. How time flies. Glad I got out though as it wasn’t the life for me.
Pension? My company calls it a thrift savings plan it's all money they put away. They contribute 5% of your salary yearly and give you 4% interest on what is in there. I can take that as monthly payments until I die. That includes medical if taken as payments and becomes secondary to medicare at 65. They just sent something that the medical is changing to like $3500/year to get a plan from marketplace with some they picked. I can take the payments all to me, a couple percentages to me and then wife if I pass first or equal amounts to me and then her. Difference is about $250/month more if all me or less if even for both. Even $$ for both is about $2k/month. Nothing left to kids from that way.
I have the option to take that thrift savings as lump sum and do what I want but no secondary medical. Projected lump would be about $375k. I'm hoping for 62 which is 5.5 years away then need to really decide which way to go with that. Invest that, buy some secondary medical, covers wife, anything left for kids.
My wife is a teachers assistant in local school district, her pension at 62 (a year behind me) is about $900 IIRC. She also contributes some to a 403b but not that much and just in it recently.
I get $420/month already from fire departments LOSAP. That goes all to me or 10 years guaranteed, nothing for her if I pass after 10 years (65). There is also a LOSAP entitlement thing, not exactly sure how that's working. Something with life actuary calculations, more now and reduces over the years. Goes up a bit as long as I stay active at firehouse and make my percentage. Last year was one lump check of $7k, pays out 1x per year. That one went quick with my sons wedding, is what it is.
My SS will be about $2500/month, wife's SS about $1300 if we both start at 62.
I put 7% to my 401k and the company adds 5% on that. I have done at least that percentage for 32 years, more before kids, the last 10 years as Roth 401k in S&P and Fidelity Growth Company with some other smaller percentage ones. I cleared the 7 figure hurdle end of 2024. Hopefully keeps performing well.
So lots of taxes to pay anyway but about $5k/month guaranteed on mine, $7k when she retires and hers adds to it. The rest to play, relax, help kids, maybe some dabble day trade like other BITOGERS etc will come from the 401k.
I definitely need to sit with a planner to help with preservation, withdrawal/tax strategies, transfer plans to kids. Also need out of NY with all the extra taxes here. My friend retired and moved to FL. One month of his property taxes up here covers his year down there plus the taxes on retirement funds.
I have the option to take that thrift savings as lump sum and do what I want but no secondary medical. Projected lump would be about $375k. I'm hoping for 62 which is 5.5 years away then need to really decide which way to go with that. Invest that, buy some secondary medical, covers wife, anything left for kids.
My wife is a teachers assistant in local school district, her pension at 62 (a year behind me) is about $900 IIRC. She also contributes some to a 403b but not that much and just in it recently.
I get $420/month already from fire departments LOSAP. That goes all to me or 10 years guaranteed, nothing for her if I pass after 10 years (65). There is also a LOSAP entitlement thing, not exactly sure how that's working. Something with life actuary calculations, more now and reduces over the years. Goes up a bit as long as I stay active at firehouse and make my percentage. Last year was one lump check of $7k, pays out 1x per year. That one went quick with my sons wedding, is what it is.
My SS will be about $2500/month, wife's SS about $1300 if we both start at 62.
I put 7% to my 401k and the company adds 5% on that. I have done at least that percentage for 32 years, more before kids, the last 10 years as Roth 401k in S&P and Fidelity Growth Company with some other smaller percentage ones. I cleared the 7 figure hurdle end of 2024. Hopefully keeps performing well.
So lots of taxes to pay anyway but about $5k/month guaranteed on mine, $7k when she retires and hers adds to it. The rest to play, relax, help kids, maybe some dabble day trade like other BITOGERS etc will come from the 401k.
I definitely need to sit with a planner to help with preservation, withdrawal/tax strategies, transfer plans to kids. Also need out of NY with all the extra taxes here. My friend retired and moved to FL. One month of his property taxes up here covers his year down there plus the taxes on retirement funds.
Any pension things from Airline? At least free flights for rest of life?
I'll be happy with roof over head for me and my wife, food on table, hopefully healthy, living as I do now but no alarm clock. The rest will need to be figured out.
No pension from the airline. United Airlines pilot pension was liquidated during the bankruptcy in 2002.
At the company that I worked at before I retired they had a great salesman who was promised a pension when he retired early around age 60. The problem was that the original owners sold the company and the new owners didn’t honor that promise. I’m not sure why he didn’t pursue legal action but I know that after he retired and moved to Myrtle Beach for six months, he came back to work again. He only stayed with the company for about a year and then went elsewhere. He’s still working today
New company new rules.
No company wants to inherit a legacy cost that’s very very expensive.
Well said.
Kestas
Staff member
When I retired I was offered to keep my pension or take a lump sum. Just straight money I calculated to break even point was 80 years of age. I opted for the lump sum. I can reasonably expect to grow that money, plus I don't have to deal with the possibility of the company going insolvent. Even though the company is over 100 years old, there's no guarantee of a future.
I lucked out. A year later my boss told me they cut the lump sum option for future retirees by 25%.
I lucked out. A year later my boss told me they cut the lump sum option for future retirees by 25%.
