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How much would having a pension keep you at your current job.
Posted on 9/15/17 at 1:35 pm
Posted on 9/15/17 at 1:35 pm
I have a great job that I love but I've basically capped out my pay. However I have a great pension that I'm 13 yrs vested in. I know if I stay and make 25 or 30 years I'll be in incredible shape when I retire. That being said I could make more somewhere else and find more fulfillment somewhere else.
I've just always been the bird in the hand is better type guy.
I've just always been the bird in the hand is better type guy.
9
Posted on 9/15/17 at 2:00 pm to tigereye58
I would much rather have a 401k than a pension.
Posted on 9/15/17 at 2:05 pm to Shepherd88
Yea...I have both with a 6% match. Last interview I had she all but told me I'd be an idiot to leave. Lol. It made me think twice. That really wasn't the best opportunity but it would have resulted in a pay raise.
Posted on 9/15/17 at 2:09 pm to tigereye58
i wouldn't take a job if it offered a pension over 401k. Too many folks get left high and dry when the pension isn't managed properly.
Posted on 9/15/17 at 2:16 pm to notsince98
It's fairly easy to calculate what that pension is worth and (with some assumptions) determine what kind of pay raise would be required to offset the loss of pension.
You mention fulfillment as well. This is much less quantifiable, and no less important. Only you can determine the value of your happiness.
You mention fulfillment as well. This is much less quantifiable, and no less important. Only you can determine the value of your happiness.
Posted on 9/15/17 at 2:33 pm to tigereye58
I am not totally sure a pension is better than a 401k anymore.
Posted on 9/15/17 at 2:59 pm to tigereye58
quote:
13 yrs vested in
that means you have a long way to go. the current pension retirement options will likely change before you retire. I have pension with 7 vested years. glad i am now at a company with 401k and match. the original rules on the pension were full retirement at 55 (age 55 with 30 years to qualify) retirement has moved to 60 min, then it was backdoor moved to 65 as you have to work to get option of health insurance through company now
also, under that same pension, if i die before spouse then she only get 50% of my pension, unless i take a 20% cut in benifit at retirement.
with my 401k, that money is mine, i die its goes to my wife, and if we both pass my kids get the remaining cash
add in that there may not be any cash left by then do to miss management
EDIT:
my 401k has the option of income for life, or basically a pension within the 401k
This post was edited on 9/15/17 at 3:01 pm
Posted on 9/15/17 at 3:18 pm to tigeraddict
quote:Isn't that basically allowing the plan to purchase an annuity with your money?
my 401k has the option of income for life, or basically a pension within the 401k
Posted on 9/15/17 at 3:30 pm to member12
quote:
I am not totally sure a pension is better than a 401k anymore.
depends on who is backing the pension
Posted on 9/15/17 at 3:58 pm to member12
He has both 401k and pension.
So do I, so I'm following
So do I, so I'm following
Posted on 9/15/17 at 4:08 pm to tankyank13
I got 401k and pension. Love my job and company and plan to ride it out for the next 30 years
Company is changing to a lump sum pension offer option in January, should be interesting to see what that does to most of the work force at retirement age
Company is changing to a lump sum pension offer option in January, should be interesting to see what that does to most of the work force at retirement age
This post was edited on 9/15/17 at 4:10 pm
Posted on 9/15/17 at 6:54 pm to tigereye58
I'm in the same boat. My pension is a state program that will allow me to retire with approximately 55% of my final salary after 25 years (i'll be fully eligible at 49). I'll probably work on past that, but having that option is hard to beat.
There have been changes to ours seeking to create more solvency recently, but the changes were only for new hires going forward.
All depends on who sponsors the pension
There have been changes to ours seeking to create more solvency recently, but the changes were only for new hires going forward.
All depends on who sponsors the pension
Posted on 9/15/17 at 7:30 pm to AUjim
Federal and state pensions are the only good ones! 
states can sell off of their land that was confiscated during the 1800's and the Feds can print money. Winner winner.
states can sell off of their land that was confiscated during the 1800's and the Feds can print money. Winner winner. 
Posted on 9/15/17 at 9:26 pm to crazycubes
My best friend is a VP for Moet-Hennessy. He makes a crazy 6 figure salary and travels the world on them. Since they are French owned, have incredible pension. The best 5 years of salary averaged for the rest of your life. Free health care too.
He is under 5 years to get the pension and all that. Then moves back home takes another 6 figure job back in Dallas.
He is under 5 years to get the pension and all that. Then moves back home takes another 6 figure job back in Dallas.
This post was edited on 9/15/17 at 11:29 pm
Posted on 9/15/17 at 11:44 pm to tigereye58
quote:
How much would having a pension keep you at your current job.
I've never taken a job because of the money and never will.
I do work that interest me and I'm lucky that is also pays well. Being a slave to a job because of a money is dumb unless it's your only avenue to secure a good life for you and your family.
Posted on 9/16/17 at 8:16 am to member12
quote:
am not totally sure a pension is better than a 401k anymore.
Except it isn't Pension vs 401k. It is pension vs 401k match
For any pension program tied to your final salary, a pension > 401k match
Posted on 9/16/17 at 10:00 am to GenesChin
quote:
For any pension program tied to your final salary, a pension > 401k match
Why would anyone try to use this as a blanket statement?
One is a defined contribution plan, the other is a defined benefit plan. The compensation can vary tremendously from plan to plan.
A pension is very beneficial to someone who remains with the same company for 30+ years. Most are based on accumulated % multiplied by years of service and final average salary. The risks are only subject to company plan changes and plan management. However, you are subject to vesting requirements, and typically have large penalties based on early retirement/withdrawal, and require long service to receive maximum benefit. It typically cannot be moved or changed after separation.
A 401k is a defined contribution where the employer can contribute a predetermined amount, based on your current salary. The performance is based on market performance as well as your personal company performance (higher salary = higher match). It usually has much lower vesting requirements for the company contribution, and it is under your complete control after separation.
As the OP mentioned, and many of us here, we have both a 401k and a pension. The main question relating to the OPs decision is whether he believe he can obtain a significantly higher salary, and possibly better 401k contribution outside of the current company. A review of the total compensation package, including salary, insurance benefits, 401k match, pension plan, etc. can highlight what a similar offer would have to be offset the loss of pension. Assuming you are vested in some level of pension benefit, it's only the loss of future benefits.
Posted on 9/16/17 at 1:26 pm to barry
Wow two downvotes for following your passion. I guess I should have know the Money board would take money over career satisfaction.
Posted on 9/17/17 at 9:49 am to LSUtigerME
quote:
Why would anyone try to use this as a blanket statement?
From a financial value? There isn't a company knwon to provide a 401k match that competes giving 401k funding limitations
The OP was very clearly trying to measure financial value of pension vs 401k w no pension
quote:
One is a defined contribution plan, the other is a defined benefit plan.
I am very well aware of the difference. That's why I specifically mentioned Salary tied benefits and not a cash balance pension plan
This post was edited on 9/17/17 at 9:54 am
Posted on 9/17/17 at 10:38 am to tigereye58
None
You will start to see defaults and employer buyouts from pensions once rates increase....
...and I don't trust employers making employees fully whole or the annuities to fund up the pensions.
Give me the 401k all day every day.
You will start to see defaults and employer buyouts from pensions once rates increase....
...and I don't trust employers making employees fully whole or the annuities to fund up the pensions.
Give me the 401k all day every day.
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