Retiring after 20 years at a job?

[SteveSRT8]

Originally Posted By: Joe_Power
Originally Posted By: Mr Nice
The company I work for spends $2 billion in pensions every year. It is a legacy cost that really adds up over time.


Yeah, and I bet the top 1% are gobbling up about 60% of it.


[censored] right. They're PENSIONS, meaning you earned them as part of your contract. Surprisingly, despite the war on the "rich", most pensions are paid to the workers. Big Execs are a far smaller part, despite getting more money individually.

Most folks would do well to check their company's performance in this area, as many state and federal workers have already found out their pensions are in danger of being unfunded!

 

[Dave Hess]

Originally Posted By: motor_oil_madman
So I guess some jobs give really good retirement packages or something? I listen to these people who are like 38 years old and they're like I only have two more years and I can retire cause they put their 20 years in. Teachers are one example. How much do these jobs pay for a retirement package? I doubt it's enough to sit at home all day long for the next 40 years.


motor_oil_madman,

What retirement benefits does your employer offer ?
Don't forget your IRA contribution for 2015.

 

[Joe_Power]

Originally Posted By: SteveSRT8
Originally Posted By: Joe_Power
Originally Posted By: Mr Nice
The company I work for spends $2 billion in pensions every year. It is a legacy cost that really adds up over time.


Yeah, and I bet the top 1% are gobbling up about 60% of it.


[censored] right. They're PENSIONS, meaning you earned them as part of your contract. Surprisingly, despite the war on the "rich", most pensions are paid to the workers. Big Execs are a far smaller part, despite getting more money individually.

Most folks would do well to check their company's performance in this area, as many state and federal workers have already found out their pensions are in danger of being unfunded!


Yeah, keep telling yourself that. That's what THEY want you to believe...

 

[JTK]

Originally Posted By: motor_oil_madman
So I guess some jobs give really good retirement packages or something? I listen to these people who are like 38 years old and they're like I only have two more years and I can retire cause they put their 20 years in. Teachers are one example. How much do these jobs pay for a retirement package? I doubt it's enough to sit at home all day long for the next 40 years.


I say more power to them if they're able to do so!

Fact is, very few sectors offer this type of benefit today and haven't for years. Not many of us are fortunate enough to have a defined pension and a 401K. I still have a pension with my private sector employer of 19yrs, but they could hold it where it is any time they want. In fact, they just canned a bunch of upper management all in their mid to late 50's, some with over 30yrs with the company. Total company people too. Really bodes well with the rest of the dedicated.

 

[Dave Hess]

Saving for retirement is the responsibility of each individual, not the employer. If they offer a pension, great. If they don't offer a pension you just have to max out IRA and 401K contributions.

People in their late 50's should have substantial retirement savings where they can 'coast' towards the finish line without any problems. They had 30+ years to plan and save.

 

[MCompact]

I retired "early" at 51- but I had to buy a few years of "air time"-using my 401K-as well as agree to work an additional 600 days "on call." I finished that before I turned 58. It was a decent deal as my annual pension is the same number as my annual salary was when I retired.

 

[grampi]

Originally Posted By: Panzerman
Actually it is. My friend retired from the police after 16 years + 4 years military at $40,000 a year. That's enough for me to retire and sit at home. He got bored after two months and went back to work. No imagination, I guess. My neighbor is 96. He retired from Ford over 40 years ago. Still getting a pension, a pretty good one too by his lifestyle. That's what broke the auto industry and the government's. People make more in retirement than they ever made working. Do the math.







Pensions are not what's breaking the gov, that would be the entitlement programs...

 

[Dave Hess]

I'll get approx $7500 a month, that's with 2 pensions. Company and voluntary pension (red box).

 

[The_Jeff]

Originally Posted By: Mr Nice


People in their late 50's should have substantial retirement savings where they can 'coast' towards the finish line without any problems. They had 30+ years to plan and save.


I suspect those who sacrificed in their early years for a lower-paying govt (type) job with the contractual promise of a pension, vs a private industry flash-in-the-pan "big paycheck now" would consider themselves to have planned and saved.

 

[Joe_Power]

Originally Posted By: Mr Nice
I'll get approx $7500 a month, that's with 2 pensions. Company and voluntary pension (red box).

Not bad. I'll be drawing out about 100K/year when I retire. Maybe more, maybe less. Depends on the toys I want to buy, and trips I want to take. And that will be at age 58.

 

[Dave Hess]

With my 401K and IRA.... I will break $10,000 a month.

Wife has similar retirement benefits.

 

[Joe_Power]

Originally Posted By: Mr Nice
With my 401K and IRA.... I will break $10,000 a month.

Wife has similar retirement benefits.


Ahhhh Yeahhhhhhhh......... That's better.......

 

[msparks]

We always said in the Military any day past 20 and you are working for 1/2 pay. Since you are guaranteed that anyhow.

Many 20 year type of jobs are high stress. In many cases it makes sense to put your 20 in and find a less stressful job. I know a lot of military guys (I live in a military town) that do this. They will go work somewhere with no responsibilities and just show up and do their job.

 

[hattaresguy]

Pensions are not the only way not to work forever.

In about 5-10 years my rental income will cover all my expenses and than some. So I'll either just keep working because I like what I do or go do something else. Not sure.


I sail with another guy who "retired" at 38 after he was part of a group that sold a tech company. Now he VC's and is working on another start up.

 

[supton]

Not sure what I'll do but it would be nice to semi-retire or change careers after 25yrs at my current job. That'll put me at almost 50. Kids will be in college and I'm guessing though I'll still be paying for something for them.

Anyhow, I wish I had socked away more when I was younger. Can't change that now, so I'll ramp up my savings amount, try to get a few good years in, then see if I can somehow coast after my big cost years (raising kids) is over with. Until age 70 or so. At that point I think I'll want to be fully done. Maybe--hard to tell, since 70 is over 30 years away.

Maybe I'll luck out and stay with the current company for a few more decades, but tech fields rise and fall, and if mine falls, I may well welcome the change to go do anything else. I'll just have to lie on my resume or something.

 

[Dave Hess]

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Play with the numbers, yearly contributions, percentage rates of return and even small amounts of cash can grow substantially over 20-30 years if you stay disciplined.

I already contributed the maximum money for my IRA on January 1st of this year, I don't procrastinate when it comes to retirement planning.

 

[SteveSRT8]

Originally Posted By: grampi
Originally Posted By: Panzerman
Actually it is. My friend retired from the police after 16 years + 4 years military at $40,000 a year. That's enough for me to retire and sit at home. He got bored after two months and went back to work. No imagination, I guess. My neighbor is 96. He retired from Ford over 40 years ago. Still getting a pension, a pretty good one too by his lifestyle. That's what broke the auto industry and the government's. People make more in retirement than they ever made working. Do the math.







Pensions are not what's breaking the gov, that would be the entitlement programs...





Note that unfunded pensions are a HUGE amount of the money we need but don't show anyone.

 

[Andrew1972]

Retirement is typically half last one or two years(average) of paycheck.

Enough to live on, depends on how frugal you are. My friend(43) who is a police officer is at 15 of 20 years required for pension. He next plan work at a local high end nursery and enjoy retirement.

 

[Silverado12]

Originally Posted By: grampi
Originally Posted By: Panzerman
Actually it is. My friend retired from the police after 16 years + 4 years military at $40,000 a year. That's enough for me to retire and sit at home. He got bored after two months and went back to work. No imagination, I guess. My neighbor is 96. He retired from Ford over 40 years ago. Still getting a pension, a pretty good one too by his lifestyle. That's what broke the auto industry and the government's. People make more in retirement than they ever made working. Do the math.







Pensions are not what's breaking the gov, that would be the entitlement programs...





That would be unnecessary tax breaks to the rich and loss of industry to China, Mexico, etc. through free trade. Pensions are factored in as employee benefits. At one time, GM actually made money on pensions, but they lost market share to the import brands who don't have the good bennys the American brands had. Local governments (usually up north in the industrial cities who gave good benefits) are losing money because of industry leaving the area and the loss of a tax base.

 

[grampi]

Originally Posted By: SteveSRT8
Originally Posted By: grampi
Originally Posted By: Panzerman
Actually it is. My friend retired from the police after 16 years + 4 years military at $40,000 a year. That's enough for me to retire and sit at home. He got bored after two months and went back to work. No imagination, I guess. My neighbor is 96. He retired from Ford over 40 years ago. Still getting a pension, a pretty good one too by his lifestyle. That's what broke the auto industry and the government's. People make more in retirement than they ever made working. Do the math.







Pensions are not what's breaking the gov, that would be the entitlement programs...





Note that unfunded pensions are a HUGE amount of the money we need but don't show anyone.


Do away with the entitlement programs and those unfunded pensions would be funded...