Jobs retirement package

[herofan]

I read and hear much about people saving enough for retirement and 401ks and such. This has me wondering, are there a lot of jobs and careers that have no retirement benefits?

I have retirement through my work that is a lifetime benefit regardless of how much we have paid in, so I'm not too worried about saving for retirement, because I'm going to continue getting a check just like I was working. I do save money, but it's just for whatever; more of an emergency fund I suppose.

I'm just asking because some people look at you like your hair is on fire if you say you're not too worried about saving for retirement. Even though I will be drawing retirement, am I missing something by not being too concerned about it and having all these other investments?

 

[Bigfoot]

I hope your retirement hopes aren't with the government.

 

[kenny thomas]

At a retirement siminar a few weeks ago for state employees near here the main thing that hung in my mind is that they said you need $250,000 in the bank before considering retirement. I can retire in 8 months but the insurance would be 1120 per month so I guess I will stay a while.

 

[Bigfoot]

Hero,

I would still want some savings to hedge against inflation.

 

[Cabo]

A lot of folks have depended on their company for their retirement and later find out it has been stolen or misused. A bird in the hand is worth a whole covey in the bush.

 

[greybeard]

1. $250,000 is't enough to retire on unless augmented by SS benefits. A quality new truck will run about $40,000--that's about 1/6 of that nest egg gone all in a single minute. Even with good medical insurance, a single serious condition can cost thousands in out-of-pocket deductibles.
2. "Guaranteed Pension" isn't what it used to be. All that means, is the company guarantees you qualify for it--it has to also be fully funded by that company at the time of your retirement. Unless that pension fund is also guaranteed by a 3rd party, being vested means nothing. Even SS isn't fully funded--today's retirees SS is funded by today's workforce--not by the money today's retirees paid in during their working life.

3. Even if your company has a pension program, it is wise to do your own investing as well. Yes, it is risky, but few companies let their pension funds sit idle--they too invest those funds.

 

[Caustic Burno]

I read and hear much about people saving enough for retirement and 401ks and such. This has me wondering, are there a lot of jobs and careers that have no retirement benefits?

I have retirement through my work that is a lifetime benefit regardless of how much we have paid in, so I'm not too worried about saving for retirement, because I'm going to continue getting a check just like I was working. I do save money, but it's just for whatever; more of an emergency fund I suppose.

I'm just asking because some people look at you like your hair is on fire if you say you're not too worried about saving for retirement. Even though I will be drawing retirement, am I missing something by not being too concerned about it and having all these other investments?

Take it from some one who is retired you better save every penny you can in a 401K.
Retirement plan's go bankrupt leaving you with the PBGC which will make you throw up.
Most retirement plan's do not give raises what you retire on is what you get for life.
I have an excellent retirement plan that I draw a fixed income from, my medical benefit's have doubled since I retired. I draw more income off my 401K money than I do off my retirement again I had an excellent plan.
There is no one to give you a raise but you when inflation kick's in. Your medical bills are going to increase as well don't BS yourself in to thinking there not. Again you can't save enough.
Your current retirement plan is that of the grasshopper you better make like the ant if you want to live comfortable in your old age.

 

[Caustic Burno]

1. $250,000 is't enough to retire on unless augmented by SS benefits. A quality new truck will run about $40,000--that's about 1/6 of that nest egg gone all in a single minute. Even with good medical insurance, a single serious condition can cost thousands in out-of-pocket deductibles.
2. "Guaranteed Pension" isn't what it used to be. All that means, is the company guarantees you qualify for it--it has to also be fully funded by that company at the time of your retirement. Unless that pension fund is also guaranteed by a 3rd party, being vested means nothing. Even SS isn't fully funded--today's retirees SS is funded by today's workforce--not by the money today's retirees paid in during their working life.

3. Even if your company has a pension program, it is wise to do your own investing as well. Yes, it is risky, but few companies let their pension funds sit idle--they too invest those funds.

You are dead on and with today's rate's I wouldn't even consider retireing without at least a 1.5 mill in a 401K.
That in CD's will pay out 15 to 20 grand a year. In purchased annuities about 6000 a month before taxes.
A lot of companies have let there fund's go belly up to throw the employees in the PBGC pool.
http://en.wikipedia.org/wiki/Pension_Be ... orporation

 

[Caustic Burno]

I read and hear much about people saving enough for retirement and 401ks and such. This has me wondering, are there a lot of jobs and careers that have no retirement benefits?

I have retirement through my work that is a lifetime benefit regardless of how much we have paid in, so I'm not too worried about saving for retirement, because I'm going to continue getting a check just like I was working. I do save money, but it's just for whatever; more of an emergency fund I suppose.

I'm just asking because some people look at you like your hair is on fire if you say you're not too worried about saving for retirement. Even though I will be drawing retirement, am I missing something by not being too concerned about it and having all these other investments?

Here you go lot's of retirement calculator's here for you to look at http://www.dinkytown.net/
You better learn all you can about 72t's or you will end up paying a large chunk of your money to Uncle Sam when you retire. Your 401 money has to go into certain qualified plan's a mistake could cost you a third of your nest egg in taxes. There are very strict law's on the book's reguarding retirement accounnt's and heavy penalities if you screw up or fail the IQ test when you retire. This goes back to the 72t requirement's.

 

[HDRider]

I'd say most companies now days has no defined pension plan. Another legacy left for our kids along with high unemployment and higher underemployment.

 

[chippie]

I agree with HD Rider and agree about creating your own fund.

Just because you have x amount of dollars in the company fund, does not mean that it will always be that much or more. As mentioned, companies invest the funds, and when the market crashes, there goes your pension fund and it may never recover to what it was.

Also, remember what happened to the Enron employees.

 

[TexasBred]

Learn to save !!! You don't have to have a reason other than it's stupid not to. Don't count on anyone or any entity to look out for you. Old fashioned i know but also being honest with yourself.

 

[HDRider]

I agree with HD Rider and agree about creating your own fund.

Just because you have x amount of dollars in the company fund, does not mean that it will always be that much or more. As mentioned, companies invest the funds, and when the market crashes, there goes your pension fund and it may never recover to what it was.

Also, remember what happened to the Enron employees.

My brother worked for United Airlines. Management decided to convert to employee owned and invested all their pension funds in United stock. Then they went bankrupt. Pension lost. One little story, albeit a sad one.

 

[herofan]

Thanks for the replies. I do save money; that's my nature.

My retirement is what is called a Defined Benefit plan based on a set formula of employer/employee match which guarantees a lifetime benefit that is not dependent on personal contributions or market fluctuations such as with a 401k type plan; it includes medical insurance, and a cost of living increase yearly for life. This plan has been in place for employees since 1938. One can retire at any age with 27 years service, 5 years at age 60, 10 years at age 55, or wait until age 55 beyond 27 years for the best benefit amount. Amount is based on highest 5 years salary before age 55 and highest 3 years salary at age 55. We get 10 sick days each year that roll over to the next year. We can get a check for those unused days when we retire, or have their worth calculated into our yearly salary. Our retirement representative said that amount averages $10,000-$30,000 among most retirees. It can add up to $400 to you check monthly.

I didn't want to give the impression I blew all my money. I guess I just don't focus on it like some. I figure if I have $100,000 when I retire, even if it's just in a savings account, plus a check the rest of my life, I think I will make it. I was just curious if a lot of businesses don't have a retirement plan.

 

[Fly-guy]

I read and hear much about people saving enough for retirement and 401ks and such. This has me wondering, are there a lot of jobs and careers that have no retirement benefits?

I have retirement through my work that is a lifetime benefit regardless of how much we have paid in, so I'm not too worried about saving for retirement, because I'm going to continue getting a check just like I was working. I do save money, but it's just for whatever; more of an emergency fund I suppose.

I'm just asking because some people look at you like your hair is on fire if you say you're not too worried about saving for retirement. Even though I will be drawing retirement, am I missing something by not being too concerned about it and having all these other investments?

Take it from some one who is retired you better save every penny you can in a 401K.
Retirement plan's go bankrupt leaving you with the PBGC which will make you throw up.
Most retirement plan's do not give raises what you retire on is what you get for life.
I have an excellent retirement plan that I draw a fixed income from, my medical benefit's have doubled since I retired. I draw more income off my 401K money than I do off my retirement again I had an excellent plan.
There is no one to give you a raise but you when inflation kick's in. Your medical bills are going to increase as well don't BS yourself in to thinking there not. Again you can't save enough.
Your current retirement plan is that of the grasshopper you better make like the ant if you want to live comfortable in your old age.

My health insurance increased 3.18 times from what I was paying before I retired and now I'm being forced to go onto medicare. I just hope medicare is worth a hoot when the time comes to test it out. There are several surprises out there when you retire, some good and some not so good.

 

[3waycross]

Thanks for the replies. I do save money; that's my nature.

My retirement is what is called a Defined Benefit plan based on a set formula of employer/employee match which guarantees a lifetime benefit that is not dependent on personal contributions or market fluctuations such as with a 401k type plan; it includes medical insurance, and a cost of living increase yearly for life. This plan has been in place for employees since 1938. One can retire at any age with 27 years service, 5 years at age 60, 10 years at age 55, or wait until age 55 beyond 27 years for the best benefit amount. Amount is based on highest 5 years salary before age 55 and highest 3 years salary at age 55. We get 10 sick days each year that roll over to the next year. We can get a check for those unused days when we retire, or have their worth calculated into our yearly salary. Our retirement representative said that amount averages $10,000-$30,000 among most retirees. It can add up to $400 to you check monthly.

I didn't want to give the impression I blew all my money. I guess I just don't focus on it like some. I figure if I have $100,000 when I retire, even if it's just in a savings account, plus a check the rest of my life, I think I will make it. I was just curious if a lot of businesses don't have a retirement plan.

I would ask 2 questions! What is the name of your company and where do I sign up? One more; where do they invest that $30,000 to give you that rate of return? We have a similar deal on unused sick leave but they froze it 4 years ago and it just sits there until you retire and then they treat it like a bonus and tax you 40% on it when it is dispersed. I do have almost $30,000 in it and would love to see a 10% or better return on my money

 

[MO_cows]

That retirement plan sounds too good to be true. I wouldn't pin all my hopes and dreams for the future on it. Hubby was supposed to have a "30 years and out" retirement pension. About 26 years in, the fund was upside down and was re-structured. Now you have to be a certain age along with a complicated formula for years of service. Long story short, he worked for 35 years and still wasn't eligible to draw, he was too young. Then the company went out of business. And when he does get old enough to draw it's gonna be a lesser amount. My retirement plan was a profit sharing fund at a great job I used to have. Once there was enough in that profit sharing to pay off the mortgage, I was gonna retire and try the happy housewife lifestyle. Well a few years in the company downsized and we didn't want to move cross country for my job due to hubby's job. So my profit sharing was enough to stick us with some extra taxes that year and put siding on the house. Whoopee.

Save and invest. Bird in the hand and all that.

 

[herofan]

What is the name of your company and where do I sign up?

Oh, I guess i didn't even mention my career; I'm a KY teacher. The plan is a Defined Benefit instead of a Defined Contribution. To be honest, I don't know all the technicalities of the plan, there are documents a mile long, but it is a great plan. It's not tied to fluctuations in the stock market. A few years ago when the stock market went down and it affected a lot of retirements, it had no impact on KY teachers who were retiring.

It may go belly-up just about the time I retire, but it's been good for 75 years; I hope it continues.

 

[HDRider]

What is the name of your company and where do I sign up?

Oh, I guess i didn't even mention my career; I'm a KY teacher. The plan is a Defined Benefit instead of a Defined Contribution. To be honest, I don't know all the technicalities of the plan, there are documents a mile long, but it is a great plan. It's not tied to fluctuations in the stock market. A few years ago when the stock market went down and it affected a lot of retirements, it had no impact on KY teachers who were retiring.

It may go belly-up just about the time I retire, but it's been good for 75 years; I hope it continues.

From: http://ktrs.ky.gov/05_publications/repo ... 051-74.pdf

Despite the unsettled environment, the retirement annuity trust fund portfolio returned 21.6% in the fiscal year, beating the
benchmark Policy Index return of 20.9%. Equities, which represented 63.5% of assets as of June 30, 2011, were the strongest contributor to those results. Domestic equities returned 32.5% versus 31.7% for the S&P 1500 Index. International equities
returned 31.4% versus 30.3% for the MSCI All Country World (ex­U.S.) Index. Fixed income returned 4.8% versus 3.7% for
the Barclays Government/Credit Index

 

[Caustic Burno]

What is the name of your company and where do I sign up?

Oh, I guess i didn't even mention my career; I'm a KY teacher. The plan is a Defined Benefit instead of a Defined Contribution. To be honest, I don't know all the technicalities of the plan, there are documents a mile long, but it is a great plan. It's not tied to fluctuations in the stock market. A few years ago when the stock market went down and it affected a lot of retirements, it had no impact on KY teachers who were retiring.

It may go belly-up just about the time I retire, but it's been good for 75 years; I hope it continues.

Lord Almighty I would be more scared of your retirement plan than most it is controlled by politician's.
If you don't think that the right bunch can't screw up a good thing look at Social Security fund.
Don't say it is safe guarded by this or that done heard that line. There has been plenty of local, state and private retirement fund's raided and the employee's left holding the bag.