U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-24-2017, 04:36 PM
 
Location: SW Florida
9,777 posts, read 7,060,462 times
Reputation: 14355

Advertisements

Quote:
Originally Posted by ihatetodust View Post
Mine aren't even close to what government workers get.
You would laugh if I told you what my pension is as a state of FL retiree.

Rich indeed.
Reply With Quote Quick reply to this message

 
Old 09-24-2017, 05:44 PM
 
Location: Minnysoda
8,648 posts, read 8,547,659 times
Reputation: 5192
Quote:
Originally Posted by mlb View Post
I was vested immediately upon hiring. Municipal gov't job.

I'll draw @ $30K a year - but it took 27 years (which includes 8.5 years at the state university) to get here.

I never took the pension for granted - and started this second muni job at $28K per year. Hardly big bucks.

I'll leave at about $60K. And all throughout my employment I shoveled 15-20% into retirement savings.

We won't be hugely rich - matter of fact what we draw will be about what I bring home now.
Similar for me....Besides PERA we have a 457b that I max out and the employer matches dollar for dollar the match going into a 401a. we also have a program which any vacation time accrued over x amount goes into a HSA retirement account. I'll have 100k+in that alone to pay for healthcare when I punch out in 5 years....
Reply With Quote Quick reply to this message
 
Old 09-24-2017, 11:36 PM
 
Location: Metro Seattle Area - Born and Raised
718 posts, read 295,527 times
Reputation: 1773
I retired under the federal government's FERS plan. After working 21 years, I retired, but prior to retiring, I bought back my 13.5 years of Active Military Service to add to my final retirement computation, which brought me up to 48% of my high-three years of earnings, which was in the low six figure income range. Being in law enforcement, we had a slightly better retirement plan than non law enforcement federal employees... Is that fair... Yes, since I took a chance everyday of being shot or killed while at work and had to, without question, maintain very high public standards in my private life as well, which was easy for me since I'm a boring person!!

Anyway!! For the first seven years, I put about 7% of my pay into our TSP/401K matching plan then bumped it up to 10% then again to 15% for the last ten years of work. I'm not touching that income at all EXCEPT when I retired, I took out a good size chunk to put down on a house since I live in a high cost area... For now. BUT!! The money I used as a down payment basically has earned a very good rate of return since the housing market in my area is really strong and will basically remain that way for many more years. I'm currently thinking about moving to Texas, Georgia or north Florida within the next 4 years.

Also, under FERS and being in law enforcement, we get what is called "supplement income," which is approximately 40-ish percent of your SSA payments since WE HAVE TO retire no later than your 57th birthday... By law. Note: I've heard that the federal government will be stopping this part of the FERS pension plan for new retirees starting in January 2018.

I also retired from the Miltary Reserve at a senior enlisted rank and will be drawing monthly payments from them on my 60th birthday. So that's another decent chunk to add to the monthly pension pot.

Currently, I work for another law enforcement agency (Non federal govt.) and putting 10% of my salary into their TSP/401K matching plan, but will bump that up to 15% in 2018. I'll work there for a little over five years to get vested into their retirement plan, but the monthly payments will not be that great, but enough to cover my monthly cable/internet and water bills.

Once I'm finished with my current employment, I'll combine both of my TSP/401K plans into one long term investment vehicle and "add" only the earned interest rate to my monthly retirement income.

Even as a 17 year old "kid" when I enlisted into the military, I knew that I would only take jobs that had a good retirement plan and with other attractive retirement benefits. I clearly remember all the older men in my neighborhood, including family members, regretting that they never took that lower paying job that had a good retirement package, but instead taking the job(s) with only minimum benefits, but at a higher hourly rate. Basically, to get what I got, every job that I've had involved me carrying a firearm, which also had a very high chance of me being shot, blown up or killed. So far, I've been lucky and I just hope my luck will hold out for another 3.5 years... I'll be in my mid/late 50s when I fully retire and if I stay my current course, I'll take home more in retirement than I did while I was working.

If you're not saving/investing a minimum of 15% of your gross income now AND do not have a solid pension plan, early retirement isn't going to be very comfortable. The best advice I can give anybody is to start saving as soon as possible... Not five years from your retirement date since $50Ks and a SSA check will not cover anything beyond your very basic needs. But!! Start in your mid/late 20s or in your early 30s, if not sooner.

In my case, the only regret I have is that I will not have a house that is fully paid off when I fully retire in the next 3.5 years... If you can pay off your house... And live in a moderate cost of living location, than you're looking really good in retirement!! To me, even with a modest pension and SSA AND with a fully paid off house is a huge win-win!!

Last edited by bergun; 09-24-2017 at 11:47 PM..
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 07:40 AM
 
Location: Loudon, TN
5,815 posts, read 4,862,439 times
Reputation: 19538
You were pretty smart for a 17 year old!

I wouldn't worry too much about the house not being paid off. With your retirement income, a mortgage shouldn't be that big of a deal. I choose to keep my money invested where it earns much more than my 3.75 percent mortgage interest.
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 09:02 AM
 
Location: Location: Happy Place
3,703 posts, read 1,881,012 times
Reputation: 11355
As a soon-to-be Fed retiree, my total income will be more than adequate to live comfortably, providing my needs remain what they are now.

I am just to the place where I don't want much anymore, save a nap on the patio and the occasional trip to Santa Fe.
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 09:45 AM
 
Location: Fairfax County, VA
1,387 posts, read 692,643 times
Reputation: 2736
If you decided to pursue a private sector career knowing that the salary might be good while the benefits might not be so good, you have nothing at all to whine over regarding the situation of people who made a different choice when they came to that same fork in the road.
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 10:20 AM
 
29,829 posts, read 34,918,975 times
Reputation: 11752
Quote:
Originally Posted by 17thAndK View Post
If you decided to pursue a private sector career knowing that the salary might be good while the benefits might not be so good, you have nothing at all to whine over regarding the situation of people who made a different choice when they came to that same fork in the road.
Bada Bing!
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 11:27 AM
 
Location: Tennessee
23,685 posts, read 17,640,506 times
Reputation: 27772
Quote:
Originally Posted by 17thAndK View Post
If you decided to pursue a private sector career knowing that the salary might be good while the benefits might not be so good, you have nothing at all to whine over regarding the situation of people who made a different choice when they came to that same fork in the road.
The catch is, and I've said this repeatedly, is that for many career fields and in many geographic areas, there is essentially no wage gap between private sector and government workers. In some cases, government workers even make more because government positions often have a minimum pay level. That minimum pay level may be more than what the worker can command in the private sector.

I live in an area with a generally poor economy. Three years ago, I worked as an IT support contractor for a local contracting firm that has the local Fortune 500 HQ as its client. I was paid $11.68/hr, was only part-time (36 hours/week), and with no benefits. There was no pay raise in going full-time, but there was a poor selection of benefits.

Recently, some of those contractors were fired and the client company created similar positions in its Hyderabad, India office. Two of my former colleagues got on with the city government. The one I talked to said the city pays better than what they made contracting, AND with the additional protections and benefits of government employment.

In general, lower paid fields and areas with poor economies are where government employment will be more "preferable," relatively speaking. Some highly paid, high end private sector worker in a major metropolitan area may very well be better off remaining in the private sector.
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 11:40 AM
 
Location: Florida
4,379 posts, read 3,718,272 times
Reputation: 4121
I think they are heading toward a problem. Inflation is one. The ability of the government to continue giving good pensions is the other. Remember most tax payers will not have pensions.

As a minimum they should be putting money in a ROTH
Reply With Quote Quick reply to this message
 
Old 09-25-2017, 12:30 PM
 
Location: Paranoid State
13,047 posts, read 10,470,358 times
Reputation: 15684
1. At their stage in their life, they are probably incurring too little risk. They can achieve a higher rate of return with a balanced portfolio than they can by paying down their mortgage to zero.

2. As teachers, their future pensions will most likely come out of the same bucket of state money. That introduces some risk that would have been better to diversify away.

3. One is a HS teacher; the other is elementary. Is it a so-called "Unified" school district? That is, they they both employees of the same district? If so, that also introduces some risk that it would have been better to diversify away. Even if they are not in the same district, their respective districts might be subject to the same macroeconomic forces, which of course then introduces some risk that would have been better to diversify away.

Fear is a wonderful motivator. I'd encourage them to look at a few alternatives.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top