Federal pension jealousy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

[Anonymous]

Anonymous wrote:im 45. been with feds for 20 years. just made SES this year. I got 17 more years (will retire at 62). then then salaries will approach or cross $300k. that means I'll have a six figure pension!!!

Which will buy what 20k buys today. Thanks to the government and the FED.

[Anonymous]

Anonymous wrote:The job security and work/life balance in the fed world offsets the perceived or even real difference in income in the private sector. I've been laid off twice over the last 22 years due to my companies being sold and was unemployed for almost 18 months in total and had to relocate each time. That lost income and the cost of relocating was huge.

Few in the private sector have pensions though most have 401ks. Pensions should not be richer for feds and should be based on the traditional formulas for years of service and salary.

Richer than what? Than the private sector, which doesn't usually have them?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

The same that you pay while employed, the only difference is that you have to pay with post tax rather than pretax dollars.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

NP. The healthcare premium is the same before and after retirement, so 1/4 of the total.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

The same as you would if you are working. $600/mo for 2 of us. Premium just continues on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

The same that you pay while employed, the only difference is that you have to pay with post tax rather than pretax dollars.

This should be available to every US citizen, regardless of employment. Single payer for all!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Nonsense. Most people who work their whole careers in a federal position retire with a pension worth roughly $1.5M, about $0.5M of which was taken from their paychecks while working. So the net benefit of a pension is worth $1M, which you could get by a $10K annual investment. So if you can boost your pay by $10K and save that, you come out ahead by leaving the federal government.

Nope. They get the 1+ pension and also 1.2m+ thrift (that included good matching). Also get the healthcare for life and can retire well before 65.

How much of the premium do you pay after you retire?

The same as you would if you are working. $600/mo for 2 of us. Premium just continues on.

Thanks to all who answered my question. DW and I are public employees (not federal) and we often hear comments about our “healthcare for life”. It’s $443 a month for two of us and would go to $1,491 if we both retired today. Dental is extra.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Pensions are only good if you live long enough to collect. I know of two people who died within two or three years after retiring. Pensions stop at the pensioner's death. What is remaining in a 401k can be left to heirs.

[Anonymous]

Envy, it’s envy not jealousy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Pensions are only good if you live long enough to collect. I know of two people who died within two or three years after retiring. Pensions stop at the pensioner's death. What is remaining in a 401k can be left to heirs.

Nope. For federal pension the spouse continues to receive at least 50% after death of partner with pension.

[Anonymous]

We are retired military. Tricare premium is $60.50 per month for husband, wife, and college aged son.

I’ve had three surgeries, two childbirths, daily prescription for thyroid….never paid a penny for any of it. All paid by my husband’s military service. I honestly had no idea how much health insurance was until I started reading DCUM.

He also has 27 retired military pension and will have federal pension (small) for five years of employment. Plus significant VA disability.

[Anonymous]

The only reasons pensions still exist is because the government does not care what anything costs. Companies got rid of them decades ago because pensions are *outlandishly* expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Pensions are only good if you live long enough to collect. I know of two people who died within two or three years after retiring. Pensions stop at the pensioner's death. What is remaining in a 401k can be left to heirs.

Nope. For federal pension the spouse continues to receive at least 50% after death of partner with pension.

That’s only if you select survivor benefits. And only a spouse can inherit that pension. Everyone isn’t married, but most people have someone that might want to leave money when they die. Children or any beneficiary can inherit a 491k, 457, or IRA.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would only be jealous of a fed pension if they started 15 years ago. Newer feds pay in a lot more to get the same pension amount so it's lower salary in reality. Sucks.

Yea but you would need to have many millions of dollars in a 401k to generate the sort of income you’ll get from a pension

Pensions are only good if you live long enough to collect. I know of two people who died within two or three years after retiring. Pensions stop at the pensioner's death. What is remaining in a 401k can be left to heirs.

Nope. For federal pension the spouse continues to receive at least 50% after death of partner with pension.

That’s only if you select survivor benefits. And only a spouse can inherit that pension. Everyone isn’t married, but most people have someone that might want to leave money when they die. Children or any beneficiary can inherit a 491k, 457, or IRA.

Most federal employees also have a TSP. Government matches 5%. My DH and I each have 1 million currently in TSP (at 50) in addition to the pensions we will receive.