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Old 01-15-2018, 06:41 PM
 
11,134 posts, read 8,544,282 times
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Quote:
Originally Posted by Gerania View Post
My father did plan for his retirement and the rug was pulled out from under him. He was canned after 29 1/2 with the same company and didn't get his pension. Well, the lawyer he hired got him 25% for 3 years. The scum bag handling his investments liked nice things, so dad never saw that money again. The guy spending time in federal prison didn't quite make up for the loss. The stress of all this caused him to have a massive heart attack. It took nearly two years for disability to come through. Mom, who had been working part time, had to find full time employment. Thankfully, dad had some money in his savings account and a very healthy emergency fund.

Whew! We made it, but that was the end of, "You'll never have to worry because I've planned for this." It nearly wiped us out. Everything was different after that.
Is a pension really planning? Maybe It's the times we are living in, but I consider retirement planning to be based around personal savings, investments, and 401k/IRA accounts. True pensions are an uncontrollable form of "getting lucky."

I've never worked at a company that offered a pension.
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Old 01-15-2018, 07:02 PM
 
Location: Forests of Maine
30,682 posts, read 49,455,573 times
Reputation: 19134
Quote:
Originally Posted by charlygal View Post
Is a pension really planning? Maybe It's the times we are living in, but I consider retirement planning to be based around personal savings, investments, and 401k/IRA accounts. True pensions are an uncontrollable form of "getting lucky."

I've never worked at a company that offered a pension.
Some careers are low paying and offer a pension. By staying in that career, you sacrifice in pay while planning on the pension.

But even then if you reach the pension and you are still making mortgage payments or renting, you will not have enough to survive. To make that kind of retirement viable you need to pay off the mortgage.
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Old 01-16-2018, 12:34 AM
 
11,935 posts, read 20,392,868 times
Reputation: 19328
Quote:
Originally Posted by charlygal View Post
Is a pension really planning? Maybe It's the times we are living in, but I consider retirement planning to be based around personal savings, investments, and 401k/IRA accounts. True pensions are an uncontrollable form of "getting lucky."

I've never worked at a company that offered a pension.
Didnít use to be that way. You could count on your pension. Now, however, companies go completely bust and the pensions go with them and pensions get paid out pennies on the dollar. Not all, notmost, but enough that people donít trust them.

Let me tell you... if companies can figure a way to not fund 401ks, theyíll do it. Because they arenít the ones whoíll be screwed if they do it.

Anyone planning on just one thing is crazy. If you have a 401k, also open an IRA. And save money, too, outside of retirement.
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Old 01-16-2018, 03:51 AM
 
Location: R.I.
979 posts, read 606,070 times
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Quote:
Originally Posted by Mircea View Post
The average COLA increase is 4.3% annually, and on $1,500 that works out to $5,300 in 2048.
In 1984 at the age of 27 I finally moved out of my parents home into a cute little 1BR apartment in a complex one town over. My income back then was $18,000/year and my rent for that little apartment was $350/month which included water and I had to pay for telephone and electric so with that I was paying around $375/month total which was 25% of my income.

For the heck of it a few months back I checked what the going rents were for 1BR apartments in my old complex and they are now $1,000/month. When you add basic cable and electric the cost to live in my old apartment would be at least $1,150/month. So 34 years later the cost to live in my old 1BR apartment has a little more than tripled.

If the past is any prediction of the future 30 years from now triple that $1,150 rent and it will be around $3,450/month. If a $1,500 monthly Social Security benefit in 30 years turns into a $5,300/month and out of that you have to pay a rent of $3,450/month that is 65% of that benefit. And if a $1,500/month benefit today puts one over the HUD income threshold, so likely will a $5,300/month benefit 30 years from now. So after paying $3,450 for rent, that leaves $1,850 to pay for remaining expenses. If food prices should also triple over the course of that time, someone who now pays $400/month for groceries will be paying $1,200/month. And if all other expenses such as health insurance, car insurance, etc. is today another $500/month triple that = $1,500/month. So out of that $5,300/month benefit one would still be short $850 to cover all their expenses.

If you consider the above scenario, to cover all expenses by year 30 one would need minimally an additional $10,000 of annual income to supplement their $63,600 Social Security income to cover their basic expenses.
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Old 01-16-2018, 03:58 AM
 
11,134 posts, read 8,544,282 times
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Quote:
Originally Posted by Tallysmom View Post
Didnít use to be that way. You could count on your pension. Now, however, companies go completely bust and the pensions go with them and pensions get paid out pennies on the dollar. Not all, notmost, but enough that people donít trust them.

Let me tell you... if companies can figure a way to not fund 401ks, theyíll do it. Because they arenít the ones whoíll be screwed if they do it.

Anyone planning on just one thing is crazy. If you have a 401k, also open an IRA. And save money, too, outside of retirement.
What do you mean by companies funding 401ks? The employees fund their own 401k. Some companies offer a matching contribution but they are not required to do so.

Pensions were never a good business decision. For employees, it just seems silly to give up a lifetime of earnings for a pension.
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Old 01-16-2018, 04:33 AM
 
Location: Tampa, FL
27,798 posts, read 26,217,684 times
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Quote:
Originally Posted by charlygal View Post
True pensions are an uncontrollable form of "getting lucky."
So if one is a police officer who works his adult life in the police force and earns his pension, he's "getting lucky?" Like winning a lottery or something? That doesn't compute to me.
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Old 01-16-2018, 05:13 AM
 
Location: Northern California
436 posts, read 195,598 times
Reputation: 552
Quote:
Originally Posted by BucFan View Post
So if one is a police officer who works his adult life in the police force and earns his pension, he's "getting lucky?" Like winning a lottery or something? That doesn't compute to me.
CalPERS Slashes Pensions 60% for Hundreds of Retirees - Breitbart

This began in a town about 30 min away from us in Loyalton.

So of course, if you worked as a police officer and earn your pension and actually OBTAIN all of it, you've hit the lottery. You got lucky. Others aren't so lucky though worked just as hard. Things are changing fast, and not for the better
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Old 01-16-2018, 06:30 AM
 
11,134 posts, read 8,544,282 times
Reputation: 28109
Quote:
Originally Posted by BucFan View Post
So if one is a police officer who works his adult life in the police force and earns his pension, he's "getting lucky?" Like winning a lottery or something? That doesn't compute to me.
Pensions were originally a recruitment tool. No company had a moral or ethical obligation to offer a pension regardless of an employee's tenure.

If the employment contract indicates a pension, then great. However, no one earns a pension. They just meet the requirements of the agreement.
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Old 01-16-2018, 06:39 AM
 
71,593 posts, read 71,751,865 times
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Many jobs do calculate the pension as part of you total compensation so you give up a lifetime of higher pay and savings . So you certainly did earn it.

My wife accepted lower pay for 21 years working for a private preschool because they offered a small lifetime pension . She could have worked elsewhere for far more money but no pension. The pension is part of the compensation package and is instead of pay up front like the competitors pay

Last edited by mathjak107; 01-16-2018 at 07:26 AM..
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Old 01-16-2018, 07:11 AM
 
Location: Forests of Maine
30,682 posts, read 49,455,573 times
Reputation: 19134
Quote:
Originally Posted by BucFan View Post
So if one is a police officer who works his adult life in the police force and earns his pension, he's "getting lucky?" Like winning a lottery or something? That doesn't compute to me.
I can't tell you how many people on this forum have told me that I am 'lucky' to have served 20-years in the Navy and gotten a pension.
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