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Old 01-14-2018, 11:48 AM
 
Location: Idaho
1,451 posts, read 1,153,086 times
Reputation: 5472

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Quote:
Originally Posted by southkakkatlantan View Post
So...only 1 person had feedback on my pension post above...?

However, I was still interesting in getting opinions about whether staying at a job like mine is worth it because of the pension. This question arose for me after one poster (or a few) mentioned I should consider leaving now and start working on a government pension....
Considering the fact that many companies no longer offer pensions, the one offered by your company does not look too bad but I don't think it is good enough for you to stay for 10 to 17 years and not considering better alternatives.

Do you have to stay at least until 48 to collect $642 at 58?

How much will you get if you stay for the minimum 5 years?

Does the company offer any health care insurance for retirees? It not, you may want to check out civil service jobs since you will get not only pension but also health care.

If it was me, I'd start looking for a civil service job a year or so before the vesting minimum years and jump ship after I'm vested.

Age discrimination is illegal in government jobs but the younger you are, the more likely that you will get hired. I don't think you should wait until you are 50 or 55 to leave your current job. Besides, there is no guarantee that you will not be laid off before you reach these ages.
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Old 01-14-2018, 03:14 PM
 
Location: Atlanta
3,201 posts, read 3,195,476 times
Reputation: 2026
Quote:
Originally Posted by BellaDL View Post
Considering the fact that many companies no longer offer pensions, the one offered by your company does not look too bad but I don't think it is good enough for you to stay for 10 to 17 years and not considering better alternatives.

Do you have to stay at least until 48 to collect $642 at 58?

How much will you get if you stay for the minimum 5 years?

Does the company offer any health care insurance for retirees? It not, you may want to check out civil service jobs since you will get not only pension but also health care.

If it was me, I'd start looking for a civil service job a year or so before the vesting minimum years and jump ship after I'm vested.

Age discrimination is illegal in government jobs but the younger you are, the more likely that you will get hired. I don't think you should wait until you are 50 or 55 to leave your current job. Besides, there is no guarantee that you will not be laid off before you reach these ages.
I will hit the vesting requirement of 5 years in which will be basically at my 40th birthday next year.


Here are some estimates I just ran from the site detailing what I would get if I quit at the 5 year mark:


Quit at age 40, collect at age 55: $169
Quit at age 40, collect at age 62: $299
Quit at age 40, collect at age 65: $386


The numbers are really low until you get at least a decade in. For instance, here are 3 more estimates based on quitting at 10 years *or more* in (but collecting at age 62):


Quit at age 45, collect at age 62: $682
Quit at age 50, collect at age 62: $1,062
Quit at age 55, collect at age 62: $1,770


I am totally open to this whole idea of switching over to a different job for the purpose of the pension. Of course, leaving my current salary would be difficult as I'm assuming I'd be taking a huge paycut to go to government job as I have no clue what kind of job I would be qualified for and end up taking.
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Old 01-15-2018, 05:57 AM
 
Location: New Oxford, PA
120 posts, read 59,065 times
Reputation: 464
Quote:
Originally Posted by southkakkatlantan View Post
I will hit the vesting requirement of 5 years in which will be basically at my 40th birthday next year.


Here are some estimates I just ran from the site detailing what I would get if I quit at the 5 year mark:


Quit at age 40, collect at age 55: $169
Quit at age 40, collect at age 62: $299
Quit at age 40, collect at age 65: $386


The numbers are really low until you get at least a decade in. For instance, here are 3 more estimates based on quitting at 10 years *or more* in (but collecting at age 62):


Quit at age 45, collect at age 62: $682
Quit at age 50, collect at age 62: $1,062
Quit at age 55, collect at age 62: $1,770


I am totally open to this whole idea of switching over to a different job for the purpose of the pension. Of course, leaving my current salary would be difficult as I'm assuming I'd be taking a huge paycut to go to government job as I have no clue what kind of job I would be qualified for and end up taking.
I faced the same dilemma at age 21. Being able to see the big picture, I decided to take the initial pay cut, to go with the career with the pension/health care. Best move I ever made. 25 years later, I was retired.
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Old 01-15-2018, 06:33 AM
 
Location: Atlanta
3,201 posts, read 3,195,476 times
Reputation: 2026
Quote:
Originally Posted by Ghost Guy View Post
I faced the same dilemma at age 21. Being able to see the big picture, I decided to take the initial pay cut, to go with the career with the pension/health care. Best move I ever made. 25 years later, I was retired.


Well, I am about to be 39 so it's just a bit different for me.


Which is why I wouldn't mind getting opinions on doing the same considering my situation (age, current salary, current small pension, etc.)....
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Old 01-15-2018, 07:31 AM
 
Location: Tennessee
23,557 posts, read 17,535,380 times
Reputation: 27602
Honestly, I think you're going to have a hard time finding many people under 60 in the private sector with a decent pension to compare with.

I've worked for three Fortune 500s, a software company (had the best benefits/comp out of anywhere), a bank, a small manufacturing facility, and a health system, in three different regions of the country.

Only one of the F500s offered a pension to new employees. None of the other companies did. Some "legacy" employees had pensions, but they were often in their 50s or older. Pensions have largely gone the way of the dodo years ago in the private sector.

I make around $60,000 in the private sector. The state had a role with the same title as mine for $54,000 - yes, that's a salary drop, but look at the benefits.

1) 11 holidays annually. I get the six majors and that's it.
2) One day of sick leave per month, one day of vacation leave per month. That's 24 days.
3) Between sick, vacation, and extra holidays, they have 35 days compared to my 21 that must cover everything.
4) Pension plan. We have no pension.
5) With that much sick leave, there must be some expectation that it can be used. Here - a fourth sick day per year is an oral warning.
6) Bonuses. Staff salaried exempt employees, at least on my team, are not eligible for a bonus.
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Old 01-15-2018, 08:38 AM
 
Location: Forests of Maine
30,677 posts, read 49,423,020 times
Reputation: 19129
Quote:
Originally Posted by southkakkatlantan View Post
So...only 1 person had feedback on my pension post above...?


I'm assuming it's because people read it and were probably just thinking "yeah...that's nothing...definitlely don't bother with counting those projections in your financial estimates" lol


However, I was still interesting in getting opinions about whether staying at a job like mine is worth it because of the pension. This question arose for me after one poster (or a few) mentioned I should consider leaving now and start working on a government pension....
With what you have now, you can easily project your future pension.

If you look through the jobs at OPMs USAJOBs you can see what kinds of jobs you would qualify for, what pay-grades they are, and what pensions they would offer.

Getting a decent pension from a federal job is not always cake though. My Dw worked for DECA, she planned on getting a good pension from it. When she finally became eligible for the pension, she applied for it. They initially gave her an estimate of her pension and it was about what she had expected to see. But it takes them months to do the 'real' math, and when they did, come to find out she was originally hired as a part-time worker, so they were only contributing to her pension as a p/t worker. After 5 years she was bumped to f/t, but the payroll people never changed the contribution levels. So while she did become eligible for the pension, the contributions going into it were only 1/4 of what they should have been. Now her pension is less than $200/month.

Financially we budgeted to live on my military pension, so we are not struggling, per say. We are years away from SS and we see that working a federal job did not benefit her in the way that we had assumed it would.
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Old 01-19-2018, 09:47 PM
 
Location: Columbia SC
8,947 posts, read 7,725,979 times
Reputation: 12154
Not sure I did not post earlier but my advice is marry an earner and do not have children. Them little boogers can be expensive.
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Old 01-20-2018, 01:02 PM
 
485 posts, read 490,215 times
Reputation: 836
Quote:
Originally Posted by johngolf View Post
Not sure I did not post earlier but my advice is marry an earner and do not have children. Them little boogers can be expensive.
Having little boogers is the best thing that ever happen to us. Money isn't everything.
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