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Many good paying positions can be done from any number of places and why push out retirees who have money to spend but think they're being treated like politicians' piggy banks?
I'm not wishing for it...i'm just pointing out that you can choose to shop at Wal-Mart, Target, or Mom-and-Pop, and you can choose where you live. And yes, retirees that qualify for nice rebates on the property taxes are the piggy banks...i gotcha!
should they be in a special category labeled "menial workers" and we should expect that they should earn less than their public sector equivalents?
listen, if you want to bring up private sector vs public sector, i'm going to point out the parts of the private sector that skew the data that makes your point. that's all.
listen, if you want to bring up private sector vs public sector, i'm going to point out the parts of the private sector that skew the data that makes your point. that's all.
they don't skew my data. even when you account for equivalent education, the public sector worker comes out well ahead. also, nobody really mentions the fact that in government you probably have tons of people with college & graduate degrees doing the work of someone who only needs a high school degree.
I don't feel like really doing the math so I'll make some of the numbers simple. Let's assume someone worked for the state for 40 years and made $60,000 each of those years. This equates to a pension payment of $40,000 a year for the 15 or so years you have left on this earth or $600,000 total(assuming you actually live 15 years). You got this by paying $4,200 a year.
Now let's assume that NJ had a defined contribution plan, and you were only putting in $2,100 a year, 3.5%, and the state matched you. Assuming an annual return of 6% this comes out to $650,000 when your retire after 40 years. The beauty of this is that all of this money is "yours" whether you live one year into retirement or 20, while saving you $2,100 a year which you could dump into an IRA or something and have even more money at retirement, and you're nest egg will still grow as you age.
Start writing to your unions about the awesomeness of defined contribution!
The State us supposed to put in 4%. , Captain why is that number 7% clearly ridiculous? Have you done the math or is it just your knee jerk anti-pension reaction?
I don't feel like really doing the math so I'll make some of the numbers simple. Let's assume someone worked for the state for 40 years and made $60,000 each of those years. This equates to a pension payment of $40,000 a year for the 15 or so years you have left on this earth or $600,000 total(assuming you actually live 15 years). You got this by paying $4,200 a year.
Now let's assume that NJ had a defined contribution plan, and you were only putting in $2,100 a year, 3.5%, and the state matched you. Assuming an annual return of 6% this comes out to $650,000 when your retire after 40 years. The beauty of this is that all of this money is "yours" whether you live one year into retirement or 20, while saving you $2,100 a year which you could dump into an IRA or something and have even more money at retirement, and you're nest egg will still grow as you age.
Start writing to your unions about the awesomeness of defined contribution!
Agreed 100%. The pension system is great for those who have multiple pensions like the well connected on both sides of the aisle. While the regular Joe will work for upwards of 25 years and had the same money be put aside in a retirement account he would have been much better off. The most important point is that the money would 100% be his. What happens now is the public workers now pay a ridiculous 7% that they may not see. It only ridiculous because the money is not guaranteed to be theirs. Again this is all politics at its finest. Both sides of the aisle are equally wrong in this and I feel bad for the regular everyday worker who may get burned in the end.
I don't feel like really doing the math so I'll make some of the numbers simple. Let's assume someone worked for the state for 40 years and made $60,000 each of those years. This equates to a pension payment of $40,000 a year for the 15 or so years you have left on this earth or $600,000 total(assuming you actually live 15 years). You got this by paying $4,200 a year.
Now let's assume that NJ had a defined contribution plan, and you were only putting in $2,100 a year, 3.5%, and the state matched you. Assuming an annual return of 6% this comes out to $650,000 when your retire after 40 years. The beauty of this is that all of this money is "yours" whether you live one year into retirement or 20, while saving you $2,100 a year which you could dump into an IRA or something and have even more money at retirement, and you're nest egg will still grow as you age.
Start writing to your unions about the awesomeness of defined contribution!
All that's fine & dandy assuming the following:
- the match is never suspended,
- you never get laid off and have to dip into your retirement savings,
- you don't retire in late 2008 when the market dipped by 1/3.
That last one is the main reason why Dubya abandoned his Social Security privatization gift to Wall Street. Preferably it would be a combo DB/DC arrangement. But most companies have scrapped the DB plan to let the avg, inexperienced worker do-it-themselves...and pay 100% of the cost thru the investment expenses. A "win-win" for our modern greedy corporations.
do you think you are representative of the average private sector worker? I doubt you are.
Clearly you don't have all the perks I do. So sorry. Why don't you get a job that does? You do have choices you know.
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