Saturday, April 20, 2013

Pensions

Both Y and I are very fortunate in that we both have pensions. He works for the public sector but I do not. I also have a 401k with a 5% match. Y has a 457 plan without a match (a 457 is basically a 401k for for the public sector).

The formula for my pension is an average of the last 5 years of service and you take 1% of that times years spent working for the company. For example, if my average for my five last years is $100,000. It would be 1% of that or $1000 times years of service--lets say 30 years. I would get $30,000 per year indefinitely for my pension.

I love my company and definitely plan to stay with them. Many people retire with over 30 years of service. If I ever need a change in jobs, there is plenty of room to change within my company.

Do you have a pension?

3 comments:

  1. Hubby has a pension, yes. I forget the specifics, but our financial planner told us it was a good plan. :) Not enough to fly to the Bahamas every weekend, but apparently "enough".

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  2. Carla, that's awesome! I think most pensions aren't enough to go on vacation every weekend but to just generally help with one's overall retirement picture.

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  3. My hubby has a state pension, a national pension, and a supplemental pension. They already have a bunch of money in them, and DH doesn't seem concerned over saving for retirement. Secretly though, I worry that something could happen and we would have to eat dog food.

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