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I'm going crazy...there are lots of recent rumors that my company is going to make big changes to the current pension plan. Based on my SS, 401(k) and Roth, and pension I was planning to retire at 62 - about 10 years from now. The rumors give a formula of age + tenure*2 = 100 to be "grandfathered" in - and I won't hit that until after my birthday in August of NEXT year in 2017.
I've been planning so carefully...and the pension was going to allow me to wait until 70 to take SS. I have this dread that I'm just going to miss the cutoff and there's no way I can replace that income...even if I work until 70.
Does anyone have experience with the kind of "deals" you get? A percentage of salary added to your 401(k) every year? A lump sum given now or at time of retirement? I have to get a handle on this...even though I know it's just a rumor what I'm hearing is just too specific to be baseless.
I understand your concern. What I will say is keep an ear open. Listen to the rumors as they are sometimes true. In the meantime continue to save as you have. If you have the means increase that savings since you probably qualify for larger savings rates. Maximize all of what you can but most importantly, do not panic. Doing that will only cause you to have health and mental issues.
My workplace gave us the option of cashing it out or putting it in the 401k plan. The pension freeze is happening all over to many people so you're not alone.
Do you know what the health, ie funding, of your plan currently is? While ours is currently funded at 105%, that is my biggest dread, though not a big one, since I am already 58, and they just stopped pensions for new hires in 2008.
As others said, nothing you can so about it now, so take deep breaths and hope it's just a rumor. Then deal with it if it ever comes.
Do you know what the health, ie funding, of your plan currently is? While ours is currently funded at 105%, that is my biggest dread, though not a big one, since I am already 58, and they just stopped pensions for new hires in 2008.
As others said, nothing you can so about it now, so take deep breaths and hope it's just a rumor. Then deal with it if it ever comes.
Yes - the health has been at about 120% for the last 4 years! And they have to put a statement saying the health for the current year and they say they foresee nothing that would impact the health for 2016!
It seems there are more safeguards in place for companies that full-out declare bankruptcy where others that decide "for the future health of the company" they need to make cuts that they can give a small fraction of what they have already taken from your salary to fund it.
And even though the pension is "fully company funded" I know that money wasn't donated by the execs...it came at the cost of lower salaries for employees. I see it as a "trade" - you give me a pension and I'll take less salary because you're giving me something in the future if I stick around....well, I stuck for more than 20 years...
Yes - the health has been at about 120% for the last 4 years! And they have to put a statement saying the health for the current year and they say they foresee nothing that would impact the health for 2016!
It seems there are more safeguards in place for companies that full-out declare bankruptcy where others that decide "for the future health of the company" they need to make cuts that they can give a small fraction of what they have already taken from your salary to fund it.
And even though the pension is "fully company funded" I know that money wasn't donated by the execs...it came at the cost of lower salaries for employees. I see it as a "trade" - you give me a pension and I'll take less salary because you're giving me something in the future if I stick around....well, I stuck for more than 20 years...
Sadly that is the way of pensions. You need to give up something to get something in return. Still given everything I know now I would not give up my pension for higher earnings. One reason is I loved my job and folks I worked with. Two the pay was high enough that even that put plenty of food on the table and a nice lifestyle while still being able to save for retirement.
Sadly that is the way of pensions. You need to give up something to get something in return. Still given everything I know now I would not give up my pension for higher earnings. One reason is I loved my job and folks I worked with. Two the pay was high enough that even that put plenty of food on the table and a nice lifestyle while still being able to save for retirement.
Anyone who actually gets a pension is very fortunate, as a lot of them are not sustainable, and probably never were. Increased longevity has added to the problem also. For me, the hospital where I would have received a pension went bankrupt and I never got anything.
You are fortunate to be in a pension plan but I think we all can see that a lot of goverment and private plans promised more than they can deliver. Thus I think you have to plan that at some point your pension might stop or be reduced. Those of us without pensions won't be able to bail you out.
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