How many of you have a PENSION vs 401k

Given to...

Are pensions just something your parents and grandparents told you about?

Do you work for a company that offers a pension, and if so, how is it calculated?

Nothing? No 401k match/no match?

Does your employer have a high turnover because of the benefits or lack of?

What are you doing for those "golden years"?

Sprunkn7

I have a pension, but have only been at this job for 7 years. It's not a lot of money. When I left my old job they had just started a 401. I liked the 401 so much better. You had much more control over it and my company matched my contributions. Our company is very small. Once a year my boss gives me a piece of paper with what I have in the pension.

intodeep

Very few companies offer pensions.
I have a 401k They match up to 4%

I put 10% of my paycheck each week to my 401k and my employer matches the first 4%

blackredyellow

401k with a 5% match... However, due to a bad couple of years, they've suspended the match, and we just got it back for 2012. Pensions are a thing of the past.

That is one area that I can't side with teachers/state workers when these state budget/contract fights happen. I'm all for workers getting good wages, but at this point, I can't feel the least be sorry when teachers or workers complain about the state wanting to cut their pensions. Why should I pay for their retirement, I already have to pay for mine.

Released1980

Have a pension with NY state retirment systems. Plus 2 403b's. My pension is in the far off distance as I'm only 31 years old.. But , it is calculated as a defined benefit plan. Meaning, you get the FAS ( final average salary ) of your 3 highest paid consecutive years. With my service credits I'll be eligable for retirement at 55 with 37 years of service. I am very happy with my future pension. Here's to me reaching it....

MayDay10

I have a 401k. No match, but my company kicks in a 'pension' and also a 'profit sharing' at the end of each year which comes out to be more than generous. In order for you to be entitled to the full amount, you have to work for 5 years here... vested goes up 20% each year. Im past that.
Personally, I try to hit the maximum allowable contribution each year... then I have a Roth IRA that I attempt to hit the maximum, but only did once. I have a mortgage now so it is going to be difficult, but trying to work it out.

PureandEasy

I have both. Company matches 401k up to 4%.

They no longer offer new hires a pension though.

MD97728

we HAD both. about 1 year before i vested for the pension they did away with the pension! we also have a 401k which at least they increased their contribution once they did away with the pension. they do contribute a good bit and i contribute a small amount but i would much rather have the pension - it's a guaranted amount every month.

Johnny Abruzzo

I am a pension actuary, and yes, pensions definitely are going away. But they're not gone yet.

We have a DB pension: 1% x service x 5-year FAS (defined above). Fairly mediocre but better than nothing, which is what most get.

Also DC - 4% company match.

curly

i have both...
401k -- $3.50 an hour (company has to pay it) goes into my 401k
my company also pays 95% of pension/benefits/ etc.etc..

i'm 39 yrs old/ started when i was 25 and now work in the office but was in the field the first 10yrs and believe you me, the work is as hard as it gets, though very rewarding, earn every penny we get...

Our current retired guys are enjoying there pension but having faith that it will be there when i retire is stretch...if its there when i retire, "great"...but i'd be a fool to think its guarenteed...me personally, i'd say it's prolly 50/50 wheather it'll be there when i retire so i'll just have to cross my fingers and wait n see..

TS1969

curly wrote:

Our current retired guys are enjoying there pension but having faith that it will be there when i retire is stretch...if its there when i retire, "great"...but i'd be a fool to think its guarenteed...me personally, i'd say it's prolly 50/50 wheather it'll be there when i retire so i'll just have to cross my fingers and wait n see..

Your pension will be there. Once you are vested I don't believe they can take it away. The company can freeze the plan but what's there is there. Plus, it would be guaranteed by the PBGC to a certain amount.

The company I work for froze our pension about 10 years ago. What I had accrued to that point is mine and I will be entitled to it when I hit retirement age. Unfortunately, the amount can not grow and is not pegged for inflation or COLA.

maj4e

I have a 401k and my wife has pension. Pensions are worth their weight in gold, if you can find one.

amongsTheWaves

401K, company matches $.50 to the dollar up to 4%, which we just got back after 2 years of it being suspended due to the economy... I don't think I'll ever retire!

Johnny Abruzzo

maj4e wrote:

I have a 401k and my wife has pension. Pensions are worth their weight in gold, if you can find one.

I'm surprised anyone still would prefer a 401(k) over a pension after 2008. Companies have obvious reason to provide 401(k) instead of DB, of course.

The vast majority of people with a pension will keep it since the company is bound to make minimum required contributions, and the PBGC mostly guarantees it with some exceptions for certain generous pensions.

The Juggler

we both have 401k's. and my wife's a teacher so she has a pretty sweet pension to look forward to down the road.

davidtrios

i have a 401k and the company matches $.50 to the $1.00 up to 5%. plus, we have profit sharing which goes into the acct. As of today, I'm on pace to accumulate just under $250k when I retire in 2049.

I also have over 30k in savings which grows about 8k per year- 296k by my retirement age.

I'm hoping to have over 500k in assets plus a house by the time i retire. i hope i become a millionaire.

Johnny Abruzzo

davidtrios wrote:

i have a 401k and the company matches $.50 to the $1.00 up to 5%. plus, we have profit sharing which goes into the acct. As of today, I'm on pace to accumulate just under $250k when I retire in 2049.

I also have over 30k in savings which grows about 8k per year- 296k by my retirement age.

I'm hoping to have over 500k in assets plus a house by the time i retire. i hope i become a millionaire.

I think I will need to accumulate about $2 million to retire. Seriously.

davidtrios

[quote I think I will need to accumulate about $2 million to retire. Seriously.[/quote]

well, then i better start investing.

Johnny Abruzzo

davidtrios wrote:

well, then i better start investing.

Let's just say by the time we are "retirement" age it's not going to be very easy to "retire" in the way that our grandparents did.

SPEEDY MCCREADY

Johnny Abruzzo wrote:

davidtrios wrote:

well, then i better start investing.

Let's just say by the time we are "retirement" age it's not going to be very easy to "retire" in the way that our grandparents did.

I have friends of mine who will have no choice, but to work until the die......

They have bounced from job to job....
Or they have worked for themselves......Doing construction, pizza delivery, waiters, bartenders.....blah blah

They have nothing sitting in social security....
They have nothing sitting in the bank.....

Retirement is something they will never know......

MayDay10

I agree on the $2 Million goal. I want to hit that when I am 59 1/2 and Im out. My finances pretty much revolve around this premise.

SPEEDY MCCREADY

And now that I think about it....

I know people who are in there late 30's early 40's who still havent figured out that they might want to go out and get a job. And when it finally dawns on them,(if ever) that they might need to actually go out an earn a living like an adult, they are going to realize that it is too late. How does one apply for a position, and have no experience whatsoever, or no work history whatsoever? How can a 35-40 year old expect to be hired when they spent the last 10 years smoking dope, eating twinkies, and seeing Pearl Jam??? hehehehe

MayDay10

yeah, I have a friend like that. Its very disturbing. Goes between off the books jobs and not working at all. Lives at parents or brothers, borrows cars from them, etc...

I want to have a talk with him, but dont want to bruise his ego too badly. Just get a job at Wegmans stocking produce or something (I would love to do that), get a paycheck, bennies, get promoted, work for a great company, save, etc...

davidtrios

MayDay10 wrote:

yeah, I have a friend like that. Its very disturbing. Goes between off the books jobs and not working at all. Lives at parents or brothers, borrows cars from them, etc...

I want to have a talk with him, but dont want to bruise his ego too badly. Just get a job at Wegmans stocking produce or something (I would love to do that), get a paycheck, bennies, get promoted, work for a great company, save, etc...

i wish they had wegmans here in chi. it's the best grocery store ever.

SPEEDY MCCREADY

MayDay10 wrote:

yeah, I have a friend like that. Its very disturbing. Goes between off the books jobs and not working at all. Lives at parents or brothers, borrows cars from them, etc...

I want to have a talk with him, but dont want to bruise his ego too badly. Just get a job at Wegmans stocking produce or something (I would love to do that), get a paycheck, bennies, get promoted, work for a great company, save, etc...

The part that kinda scares me, amazes me, makes me scratch my head?

These people are 30-40 years old, and they see NOTHING wrong with their behavior. They are still acting like they are 17yrs. old, and they are perfectly fine with it. It baffles me. Being 40 yrs. old, with NO WORK HISTORY, is just fucking bizzare in my eyes.

Better Dan

401k with a 5 % match

justam

SPEEDY MCCREADY wrote:

MayDay10 wrote:

yeah, I have a friend like that. Its very disturbing. Goes between off the books jobs and not working at all. Lives at parents or brothers, borrows cars from them, etc...

I want to have a talk with him, but dont want to bruise his ego too badly. Just get a job at Wegmans stocking produce or something (I would love to do that), get a paycheck, bennies, get promoted, work for a great company, save, etc...

The part that kinda scares me, amazes me, makes me scratch my head?

These people are 30-40 years old, and they see NOTHING wrong with their behavior. They are still acting like they are 17yrs. old, and they are perfectly fine with it. It baffles me. Being 40 yrs. old, with NO WORK HISTORY, is just fucking bizzare in my eyes.

Speedy, I think it must be avoidance behavior.

For, if they went out there and realized how hard it would actually be for them to get a job they'd feel bad. So, they avoid the whole problem. It's like a snowball heading to no-where good though! :?

Given to...

I know one or two of those 30-40 year olds also.

Even the 20 somethings that just cant grasp employment baffle me. My son worked at the only grocery store as soon as he was old enough. Work ethic. It makes a huge difference! He is in college now and knows what work is and what rewards are. Self made kid at 19 years old basically (with my tutelage of course!)

And WTF is it with a few of these 30 year old or older living with Ma and Pa and not paying any rent while pulling in close to 100K!? I know two of them off the top of my head! In my small neck of the woods!

I cant go there. I'm getting all worked up already.

merkinball

The Juggler wrote:

we both have 401k's. and my wife's a teacher so she has a pretty sweet pension to look forward to down the road.

Same here.

Who Princess

merkinball wrote:

The Juggler wrote:

we both have 401k's. and my wife's a teacher so she has a pretty sweet pension to look forward to down the road.

Same here.

I'm think teacher pensions must vary a lot from state to state. Working in social services, I've come across many retired teachers who had difficulty paying utility bills, etc. It's been a few years but I remember one lady who was receiving $600 a month, which is not my idea of a pretty sweet pension.

of.the.girl

I have both. My company matches 100% up to 5% of what I put into my 401. Plus they contribute a huge lump sum into my pension each year. Which I'm vested in both already. So I'll be sitting real good come retirement.