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interesting. I think it sways readers of retirement forum (many who are not yet retired and are younger readers) in a misguided way.
The posters who are on the public dole with their lucrative government pensions making a financial windfall make unknowing readers think it is a norm - as they never mention that most people in the U.S. do not get a pension.
But the number getting a pension is small. (and the vast majority who get a pension worked for the government)
The people planning for retirement know whether or not they will have a pension.
It's not like it is a surprise.
I will have 2 small pensions, one from being on the public dole, and one from a private company.
So of course I put as much money as possible in 401(k)s when that was an option, or bought IRAs at the end of the year.
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A penny doubled every day for a month (30days )would be 5,368,709 dollars .
So good compounding over decades takes the little bits we are able to save and creates real wealth over time .
Then the more you have the bigger and more privy to certain deals you gain access to .
So I spent my life not worrying about the Pennys I am not saving but I learned to compound them as best as I could early on ….the more time you give yourself the better the results can be.
I knew I would have no pension and it all fell on me
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by matisse12
Most people do not have a pension.
So talk of a pension giving a large part of money in retirement and a large part of what will equal one's former salary which one collected while working - does not apply to the majority of people.
That's the good part of working for a public agency. One relative just retired from a Bay Area CA agency and while her pension is only 75% of her final salary, when she starts SS in 2 years she will net more than when working, plus has medical benefits for life. This is the tradeoff for lower pay, no bonuses or stock options. My wife and I will get pensions but not nearly that much, probably less than 30% in my case, but that's after only 13 years.
That's the good part of working for a public agency. One relative just retired from a Bay Area CA agency and while her pension is only 75% of her final salary, when she starts SS in 2 years she will net more than when working, plus has medical benefits for life. This is the tradeoff for lower pay, no bonuses or stock options.
The constant touting of "working for the government is the tradeoff for lower pay" (and no bonuses or stock options) is silly - especially the misguided notion of working for lower pay - most people are not executives and administrators - they are average run of the mill employees - most workers are grunt lower level workers who would not be making a larger salary working in the private sector - and certainly would not be getting stock options.
The above is how government employees try to convince others in society that they are worth the big pensions.
I'm 7 years away from retiring at 65. At this point it's not how much I need, but what I'll have. I'm maxing out my 401K every year and am debt free. My take home pay now (after taxes & 401K deductions) isn't that much more than my delay to 70 Social Security benefits of ~$3700. So, my goal is to live on that amount and enjoy a modest retired life. Sell my house, full-time RV for a few years, buy a small house eventually. Maybe had I started 30 years ago I could have accumulated 20x my salary (!!), but it is what it is. I'll do just fine on what I have. Not like I have another choice - at least I can retire at 65! :-)
Most people could have a pension if they deemed it to be a priority, and are willing to stick it out for 20 or 25 years or more to be vested. The military, law enforcement, the fire department, most public school teachers, many federal, state and local agencies and about 60% of insurance companies have pensions in addition to retirement savings plans. Only 4% of jobs now offer pensions, but that is still millions of jobs.
Quote:
Originally Posted by matisse12
Most people do not have a pension.
So talk of a pension giving a large part of money in retirement and a large part of what will equal one's former salary which one collected while working - does not apply to the majority of people.
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Most people could have a pension if they deemed it to be a priority. The military, law enforcement, the fire department, many federal, state and local agencies have pensions in addition to retirement savings plans. Only 4% of jobs now offer pensions, but that is still millions of jobs.
So you think the government could just hire most everyone in the U.S.
So you think the government could just hire most everyone in the U.S.
That is the height of absurdity.
I do not think he was implying that.
About 25 million people work for the public sectors.
And not all pensions are a free ride, we both had to contribute via deductions to our paychecks.
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