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Old 07-05-2019, 08:56 AM
 
42 posts, read 8,050 times
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I know this question has been asked a 1,000 times, but I am just curious. I am in my early 30 and have worked for the gov. for about 7 years. I guess I have gotten a bit spoiled with benefits pension etc. although I don't really make that much money. My question is if you were capable, would you rather have a gov. job making the above amount or a 50k job in the private sector. I am a bit scared because I have no clue how to manage 401ks etc and have not heard anything positive about them. Maybe someone else can shed some light on how they work.
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Old 07-05-2019, 09:07 AM
 
1,623 posts, read 1,012,775 times
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The one with the gov Pension. Its one or the main reason people go thru walls to get a government job.
There is a saying you won the lottery if you get a city or government job.
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Old 07-05-2019, 09:37 AM
 
3,958 posts, read 1,688,304 times
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Quote:
Originally Posted by 87112 View Post
The one with the gov Pension. Its one or the main reason people go thru walls to get a government job.
There is a saying you won the lottery if you get a city or government job.
This is not necessarily true. There are many government jobs where you get minimal to no raises whatsoever. When I worked for the state, there were people who had been there for almost 30 years and barely made that much more than they made when they started. Cost of living has increased significantly. Young people do not stay because that is not sustainable. If you are in a type of government job where there are no cost of living increases or any other types of raises, how helpful is the pension going to be if you canít even afford the basics anymore?

You have to look at the overall picture. I know some people who switched and they were happy to make the switch. They were able to see wage growth and actually put more into a 401K.

There are other government jobs that do provide good wages. I have one friend who started one about 8 years ago and makes about twice as much as he did when he started through a combination of step increases and other increases mandated by the legislature. He gets a good pension and has other great benefits. It is really not worth it for him to leave to make a little more in the private sector.
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Old 07-05-2019, 09:38 AM
 
3,753 posts, read 2,119,516 times
Reputation: 10240
Government all the way. No contest. Chances are you will be able to retire. Private sector jobs generally don’t last anymore. Everyone downsizes or the company hits a brick wall and closes or gets bought out or your job just gets outsourced. Or you’re just laid off once you hit middle age (30-40 years old) because some executive somewhere needs a bigger bonus or weekend yacht . The extra bit of salary just isn’t worth it

Chances of anyone even making it to retirement the private sector isn’t good. Not anymore
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Old 07-05-2019, 09:44 AM
 
Location: Western Washington
8,929 posts, read 8,390,690 times
Reputation: 15495
It is more complicated than that. I have flipped back and forth between private and public sector jobs, as they both have their own set of pros and cons.

You need to ask many questions. Probably the biggest one is, are you willing to stay in your government sector career until you retire? That doesn't mean staying at your particular location, but it usually does mean staying in your federal, state, county, or city system. A pension does you little good if you don't retire from that system.

What are your pension benefits? Typically they are a percentage of final average salary times years of service. What are the details on yours?

For 401k, what kind of match are you looking at?

Are you going to contribute additional savings on your own, or are you likely to do the minimum?

Do you have career advancement potential?

What other benefits do you get with the government job, what are typical benefits in the private sector version of your industry, and what is important to you?
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Old 07-05-2019, 09:52 AM
 
Location: Indianapolis, East Side
1,164 posts, read 575,124 times
Reputation: 2947
If the only thing standing between you and a 43% raise is not knowing about 401(k)s, go to the library and read up on them. Basically, you should put the funds in an index fund and leave them there. The mix of stocks, bonds and cash will depend on how far away your retirement is. Don't worry, you won't need to pick individual stocks or fonds. You employer will have a variety of mutual funds you can choose from.

Retirement plans (including pensions) make the news when they're mismanaged or when someone bungles their own.
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Old 07-05-2019, 10:04 AM
 
Location: North Carolina
2,901 posts, read 2,008,313 times
Reputation: 5828
It's also worth noting that most public sector employees are required to contribute to their own pensions from their salaries.
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Old 07-05-2019, 10:06 AM
 
Location: Western Washington
8,929 posts, read 8,390,690 times
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Quote:
Originally Posted by Jowel View Post
It's also worth noting that most public sector employees are required to contribute to their own pensions from their salaries.
This is true.
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Old 07-05-2019, 10:25 AM
 
Location: Herndon, VA
2,086 posts, read 2,101,980 times
Reputation: 7371
I'm definitely glad I took a pay cut and started working for the federal government in 1998. The raises and promotions have come to me much faster than in the private sector where I was always told how valuable I was and promised large increases in pay that never came. Combine that with my 4 years in the military, and I'll retire at 60 with 30 years and a nice pension.
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Old 07-05-2019, 10:33 AM
 
3,753 posts, read 2,119,516 times
Reputation: 10240
Quote:
Originally Posted by DorianRo View Post
Government all the way. No contest. Chances are you will be able to retire. Private sector jobs generally don’t last anymore. Everyone downsizes or the company hits a brick wall and closes or gets bought out or your job just gets outsourced. Or you’re just laid off once you hit middle age (30-40 years old) because some executive somewhere needs a bigger bonus or weekend yacht . The extra bit of salary just isn’t worth it

Chances of anyone even making it to retirement the private sector isn’t good. Not anymore
Quote:
Originally Posted by Robert20170 View Post
I'm definitely glad I took a pay cut and started working for the federal government in 1998. The raises and promotions have come to me much faster than in the private sector where I was always told how valuable I was and promised large increases in pay that never came. Combine that with my 4 years in the military, and I'll retire at 60 with 30 years and a nice pension.
Yea that’s big issue to these days. Being valuable just comes with added work load and stress and no promotion or increase of pay. Companies love to find some suckers they can just throw all the work onto. There’s hardly any correlation with being valuable and doing a great job everyday with promotions and pay raises
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