Pensions? Anyone here know anything?

[Suppa Hobbit Mage]

Just airing some laundry.

I've got an opportunity in Atlanta, which I honestly have no desire to live, but the opp is nice.

I've got a great job here, making 120K + 15% incentive and a management role where I'm at. I'm well respected, 15 years in various positions. But, the job in Atlanta comes with similar (if not more) pay, similar incentive, PLUS a pension. The pension is what has my attention. I LOVE Kansas City. I have a great job, I'm sincerely love what I do, I'm paid a ton to do things I love with statistics. I'm set with my retirement and my 401K, but a little extra can't hurt, except its in Atlanta.

But a pension really has me attracted. Does anyone have any pro/cons for pensions? I'm told two years at the company and they say it's for life. I'd like to say I know something about pensions, but I don't.

Advice?

[Archigeek]

The amount of the pension pay out will depend on years of service, retirement age, and some math formula probably. I had one a long time ago, right before they were phased out in my industry. How it's funded matters too.

There's probably some public employee here who can shed more light.

[Suppa Hobbit Mage]

Sincerely, appreciate input. I know folks there and they all swear by it, but it's a private company and not something I'm used too. Frankly at nearly 50 I feel very uniformed about pensions and would appreciate input.

Thanks, Kerl.

[Seran]

It is wholly dependent on your years of service. The company says two years and you're vested, that's fair, but you also need to look at the formula they're using. What's the per year accrual and what is the earliest you can draw? Most municipalities have a 1.87% to 2% per year, at age 62-65. Meaning, for each year of active, full-time earnings you can expect a monthly stipend of that percentage of your wages beginning at their defined retirement age.

Before you jump, see if you can find out the actuarial information on their pension obligations. At current contributions, how long can they pay out 100% stipend, 80%, 50%, etc.. It's pretty uncommon for private companies to continue to offer a pension and it's pretty rare, almost unicorn rare, for a corporation to have funded more than 40-50% of their pension obligations. If they're not entirely solvent, their pension can be assumed by the Federal Pension Guarantee Corporation. There you'd be lucky to receive a fifth of what you're entitled to.

Pensions are great, I have two that I can draw from in 22 years, but they're a red hearing in most cases.

[Seran]

Also, make sure the state you're moving to or eventually going to retire in taxes pension earnings. If there's no tax, then those earnings can be a real boon.

[LOL BRIELUS]

Public employee here. Wow you've hit the jackpot for financial security. My father referred to a stable retirement as a tripod- savings, social security, and pension. In theory, you can draw your pension until you die. So if the market turns down when you retire, and your 401k savings are less than projected, you can rely on an unlimited and steady source of income. Or, if you outlive your savings living over 100. Obviously amount is affected by other factors. I would see if you can get particulars so you can estimate how this affects your finances. I hope this helps.

[Viekn]

Without getting in to the weeds, you can buy an annuity that will act as a pension, meaning it will provide you income until you die. I was an advisor for 9 years for public employees deciding between pension vs. 403b (401k). I don't have the hard numbers for YOUR plan, but in general, 50 years old generally puts you right in the middle of whether a pension plan might be the best, strictly financially, way to go or not. For the most part, pension plans work best for employees who can better afford to put in time toward their pension vs. money toward a 401k/403b. If you're looking at strictly numbers, use an online 401k/retirement plan calculator, use a 5% return over 15-20 years depending on what age you plan to retire, and use a 3%-5% annual draw down rate on your savings in retirement to determine what your annual income would be in retirement from your current retirement plan. Based on what you've said already though, it sounds like you're on a good path already and doubtful you'd need to sacrifice the job and place you love to live/work in just to get the pension.

[Ardwen]

While a pension is a good boon, especially one that vests quickly, make sure you check cost of living too. Making an extra 20 or so percent a year on average doesn't really do you much good if it costs 40 percent more to maintain the same lifestyle. There is often a reason a company uses extra perks to entice new employees to join.

[nocturnix]

I am not an expert on the topic of retirement investments and pension. But from a 100yard point of view: why move your whole life for what sounds like a little extra cash and a pension. It does not sound worth it to me, but thats without knowing more details.

Can you not ask your current employer about a pension program?

Finally, I remember hearing alot about pensions being defrauded by the company who issues them. Seems like a common play from shady companies. I have had bad experiences in the past years with companies not really giving a shit about their employees so I am a bit bitter on this topic. I feel it's my job to plan for my retirement, you cant trust the government nor your employer to look out for your retirement anymore. Just my 2 cents. Real-estate would be my goal, although I'm not there yet. But a couple rentals in a main metropolitan city paid off over the next 20 years with the hopes that they appreciate. Youre into statistics: population growth, limited space, desire to move to big cities where the jobs are...besides occasional ups and downs the properties should appreciate long-term.

But of course there are many other ways and others who are more experienced on financial topics here than I! :)

Just dont invest your life savings in ALT-Coin, or bitcoin for that matter. :)

[Voldemort]

Just airing some laundry.

I've got an opportunity in Atlanta, which I honestly have no desire to live, but the opp is nice.

I've got a great job here, making 120K + 15% incentive and a management role where I'm at. I'm well respected, 15 years in various positions. But, the job in Atlanta comes with similar (if not more) pay, similar incentive, PLUS a pension. The pension is what has my attention. I LOVE Kansas City. I have a great job, I'm sincerely love what I do, I'm paid a ton to do things I love with statistics. I'm set with my retirement and my 401K, but a little extra can't hurt, except its in Atlanta.

But a pension really has me attracted. Does anyone have any pro/cons for pensions? I'm told two years at the company and they say it's for life. I'd like to say I know something about pensions, but I don't.

Advice?

You fucking tard’, this is the circumstances of your life and you still vote Trump. You even asking this question makes you woefuly unqualified to have any opinion on finances. Absolutely moronic.

[BriarFox]

They are almost always based on years of service and average salary. The public one in my state offers 80% annually of the average of your three highest-paid years of service if you retire after 30 years.

[rolfard]

Knicknamed the golden handcuffs, I have learned that my 30 year option (at 2 percent per year for the first 30 and 1 3/4 per year after that of average of the last 3 years) can be collected if I retire after 30 years or if I change jobs midway, wait until I'm 62 to collect. So at this point changing career paths would be bad if I want to start collecting as early as possible.

[kutter]

As someone with one pension now and i will have two when I retire again I can say this definitively. Hire a financial adviser, they will be able to provide you with short term and long term guidance. But just spitballing, I would say you would likely be best off asking your current employer for a 3-5 percent raise that you just commit to a Roth and then you should at least match it, although your goal should probably be more than 6-10% of your income.

[Suppa Hobbit Mage]

Thanks all. We are in talks at the moment, I'm asking for particulars on the pension plan. Not sure I'd leave here for a private company, but it's nice to be courted and the pension definitely caught my attention when we were discussing compensation.

[LOL BRIELUS]

Everyone brings up such good points. Cost of living increase going from midwest to East Coast city is a factor to think about, plus Atlanta will feel more crowded I believe. All good things to think about. Good luck!

[BriarFox]

You think Atlanta is on the East Coast?

[Neveragain]

I would be willing to bet that the cost of living between Atlanta and KC are pretty comparable.

Median home value:

KC MO: $157k


........................ok, nevermind

Atl. : $284K


I imagined wrong

[Archigeek]

I would be willing to bet that the cost of living between Atlanta and KC are pretty comparable.

Median home value:

KC MO: $157k


........................ok, nevermind

Atl. : $284K


I imagined wrong

I would expect it to be higher in Atlanta, but probably not terribly so. The real challenge will be commuting in a city with a terrible suburban sprawl problem.

Honestly, if you love your job, I see this as a questionable move. I would only make the move if the place I could live would be fantastic on the micro level, and my commute was 20 minutes or less.