Anonymous
Post 01/10/2021 11:27     Subject: What's so great about a pension?
Pensions are guaranteed income, but I don't trust them companies are getting rid of them

Don't rely on a company or government they will drop these as quickly as possible
Anonymous
Post 01/10/2021 11:25     Subject: What's so great about a pension?
Pensions are guaranteed income, but I don't trust them companies are getting rid of them
Anonymous
Post 01/10/2021 11:14     Subject: What's so great about a pension?
Anonymous wrote:
Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.


85k? Are you on a special pay grade?


Not that pp, but it sounds like they went to work for the federal government before the civil service pension plan was changed.
Anonymous
Post 01/10/2021 11:11     Subject: What's so great about a pension?
OP. I am a 55-year old Fed, with 25 years of service, and as of this year, I can walk away from my federal job tomorrow with about 35% of my salary, plus health care.

Let me tell you, that is a huge relief to know that, basically, no matter what happens, I am not going to be destitute and will have a guaranteed income stream.

I still have other investments, but having this nest egg makes me sleep a lot easier.
Anonymous
Post 01/10/2021 10:43     Subject: What's so great about a pension?
Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.



I'll only get $30K a year but I'm also putting the maximum in my 403b. After my child graduates from college, I'll be old enough to bump that 403b due to my age.
Anonymous
Post 01/10/2021 10:35     Subject: What's so great about a pension?
Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.


+100
Anonymous
Post 01/10/2021 10:28     Subject: What's so great about a pension?
Anonymous wrote:I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.


85k? Are you on a special pay grade?
Anonymous
Post 01/10/2021 10:26     Subject: What's so great about a pension?
I have a fed pension. Because of the retirement plan I’m on and years of service, once I retire in five years, I will get $85k a year for life. That’s just for starters. I will eventually get social security, and at some point I will start withdrawing from my TSP, which currently has 7 figures in it. And I keep my health insurance.

This is why people stick it out with the feds. Yes, you can invest yourself, but the value of my pension is something like an extra 2 million in a 401 k.
Anonymous
Post 01/10/2021 10:04     Subject: What's so great about a pension?
Pensions are guaranteed for life. It's amazing.
Anonymous
Post 01/10/2021 07:50     Subject: What's so great about a pension?
A pension is free money! It is really great.
Anonymous
Post 01/10/2021 06:57     Subject: Re:What's so great about a pension?
Anonymous wrote:
Anonymous wrote:Not exactly the question, but I'll add a cautionary tale:

My father retired in 2007 after something like 40 years at the same company. He had the option of taking the defined benefit pension (guaranteed income for life) or cashing it out and investing himself. He is a smart finance guy and cashed it out, thinking he could make more money on investments and keep the income. Then the market crashed during the housing crisis. They are still doing OK, but he often says he wishes he had kept the pension.


But stocks are way way up from 2007?


True. But they had to cash out a good chunk along the way I believe. And yes, they are better now, but it was a bit scary for a few years there.
Anonymous
Post 01/10/2021 02:56     Subject: What's so great about a pension?
Anonymous wrote:Pensions are great until your company declares bankruptcy to get out from under the obligation. Most state and local pension plans are woefully underfunded, as well.

https://www.thestreet.com/investing/stocks/us-airways-pilots-still-fight-for-pension-payouts-11-years-after-bankruptcy-case-12703297



Any pension is better than no pension...
Anonymous
Post 01/10/2021 02:56     Subject: What's so great about a pension?
Anonymous wrote:What happens when you die? Does you spouse or kids get it?


Your spouse gets it. Kids do not.
Anonymous
Post 01/10/2021 00:29     Subject: What's so great about a pension?
Pensions are great until your company declares bankruptcy to get out from under the obligation. Most state and local pension plans are woefully underfunded, as well.

https://www.thestreet.com/investing/stocks/us-airways-pilots-still-fight-for-pension-payouts-11-years-after-bankruptcy-case-12703297
Anonymous
Post 01/10/2021 00:20     Subject: Re:What's so great about a pension?
Anonymous wrote:OP here. Thanks for the info. Nobody I know has or had I pension so why would I know (or care to know) about them? I asked my SIL and she has the defined contribution plan which is not guaranteed income for life. Doesn't sound like such a great deal. It sounds like any other 401k.


It's pretty clear that neither you nor your SIL know what you're talking about. The confusion problem comes from the fact that many Government employees have both a defined benefit and a defined contribution plan (i.e., a pension and a 457 plan).