s/o If you have a job with a pension ...

[Anonymous]

I noticed on the 401k thread many people noting that they have a pension plan at their job. I also have one (and am in the private sector - shocking!) and am wondering whether those people with pensions are counting on them as part of their retirement savings and does that play into your future career plans? I have been with my employer long enough to be vested in the plan, but not long enough to have built up any significant benefit. Sometimes I think I should stay forever just to cash in on this awesome benefit.

[Anonymous]

Anonymous wrote:I noticed on the 401k thread many people noting that they have a pension plan at their job. I also have one (and am in the private sector - shocking!) and am wondering whether those people with pensions are counting on them as part of their retirement savings and does that play into your future career plans? I have been with my employer long enough to be vested in the plan, but not long enough to have built up any significant benefit. Sometimes I think I should stay forever just to cash in on this awesome benefit.

At my last job there were definitely people who seemed (to me at least) to be chained to their jobs because there was a decent pension. I guess that's the upside of 401(k)s....

[Anonymous]

I have one (private sector). Right now I think my benefit would be $1700/month if I quit tomorrow. They have changed the plan to minimize it three times since I have been here (11 years) so I wonder if it'll be around when I need it in 25 years.

I don't count on it all, honestly. Kind of like social security, I guess I tend to think, that's nice, I'll be happy if it is actually there when I need it.

We also have a 401(k) with small matching, and I try to put in the $17k max per year.

[Anonymous]

Pensions are few and far between, and I would be very cautious about leaving a career with a pension unless you have other solid savings for retirement. 401ks have not been as great as promised, particularly when you are limited to options chosen by your employer.

I left a job with a pension after 20 years. I'll get a half benefit when I turn 62. But I got a 40% raise, with room to grow, and a very robust retirement plan as well. I still supplement with 401(k)s.

I do count that 1/2 pension benefit toward retirement planning. It's defined benefit, for life, with COLAs. Just not as big as it would have been had I stayed another 10 years.

[Anonymous]

We have one (imf/world bank/ifc). If dh never got another promotion and works to 60, it's calculated at 100k per year. If it weren't for that I think we'd be looking to leave the area. It's a pretty healthy fund and I doubt we'd be as tied to it, or trusting of it if we were in a govt or private fund.

[Anonymous]

'Im in my mid-30s but got in at my company before they eliminated the pension plan for new employees (so I'm grandfathered in). A few months back I had an opportunity to take a new job and in the end, the defined-benefit pension was something that kept me at my current job. I'm there almost 15 years and if I map it out, it will be about 1/3 of my annual salary. That is a nice amount that will help us immensely later, especially since now we are trying to sock money away for DC's college and therefore are not contributing as much to our 401Ks. It's a good company and a good job and this benefit was a factor in my decision.

[Anonymous]

My company offers a pension, but for some reason I'm not counting on it being there when I retire, instead it'd be a nice surprise. I've only been at my job a few years and if I left right now, I would get about $350 a month when I turn 65. The plan is good (used to be better from what i've been told), but the pension is not enough to keep me chained here forever.

[Anonymous]

I'm in private sector and we have a pension plan currently. If I left my job tomorrow, the monthly benefit would be under 1k/mo. If I remained here until retirement, I would have about 4k/mo in pension benefits. Whether or not I can rely on it, I would say the chances are about 50/50. I'm really trying to up my 401k contribution, especially once the kids are out of daycare and there is more $$$ to spare each month.

[Anonymous]

Private company pensions are usually the first things to go so I wouldn't count on them. Public sectors are (of course) more stable but still, if you look at CA a huge budget problem they are having is with their teacher pension system. Really bad.

We both have Fed pensions and sock away a ton into our TSP and 401 (K).

[Anonymous]

I get a pension with my job, and I just vested but I don't know if I plan to be here forever. So, I am still maxing out my 401k.

[Anonymous]

Meh, I wouldn't count your chickens until they hatch. My DH had a pension plan at his previous job (in pro sports-- not a player) but then the benefit was cut. I think pensions are going the way of the dinosaurs.

[Anonymous]

Ugh.

Companies didn't want to pay up (save) for pension plans, so wall st came up with 401ks and IRAs by making it sound better to the average joe (you get to choose!).

It led to millions of us leaving pension plans (saving companies/govt tons of money, but they still underfunded pension plans anyway), and wall st got tons of "maintenance fees" for taking care of the 401k/IRAs. It also led to a huge influx of money for wall st, so they gambled like crazy (when you're judged on financial soundness over lifetimes, you take small risks, versus chasing quarterly rates).

That also led to traditional pension plans taking greater risks to make up for underfunding and to keep up with 401k returns. (Remember when people wanted to privatize Social Security by investing in Wall St? har har).

The move out of pension plans was one of the symptoms of get rich mindset that blew up spectacularly and we as a society is paying for it. It's a false choice with appearance of economic freedom to choose 401k plans.

Guaranteeing certain payout for pension plans forced the pension planners to invest for the long term and to shy away from risky investments. Even then, wall st conned pension plans by slapping triple-As on mortgage securities/etc.

Not sure why I wrote that wall of text... Anyway, be glad you have a pension fund, and be vigilant that they properly keep it funded.

[Anonymous]

This is OP. It was my understanding that once you're vested in your benefit, they can't reduce whatever is vested, but they can reduce or eliminate any future benefit. We are fully funding 401ks and IRAs, so I wasn't thinking of it in terms of it affecting our other savings, but rather the idea of walking away from what might be free money when you most want/need it. I guess the real problem is that I like my job just enough that the idea of staying until I have a significant pension benefit isn't completely unpalatable, but on the other hand, it wouldn't be my first choice.

[Anonymous]

I started my current job 10 years ago with a pension - and then it was cut and eliminated. So I instead got a payout of the pension, which was not much (I was in my mid-30s) and now have a 401(k), albeit with very nice matching. I'm sure this scenario will continue to play out over the next few decades.

[Anonymous]

I'm an administrator with the public schools in Maryland. I've been here for 10 years........If I stay for another 20, I will get a pension worth about 60% of my final salary (in today's dollars, the pension benefit for 30 years, at 60% of my final salary would be around $75,000, with small COLAs each year, if the market is doing well. I will also get medical benefits, but at a higher premium than I pay now). I am concerned whether the pension will be fully funded by the time I'm ready to retire and am contributing to my 403B as well.

My husband works for higher education and doesn't have a pension, but is given 10% of what his salary is, which is invested in TIAA CREF