My father worked for carpenters union for 30yrs. He has a really nice income from pension and social security. He sleeps well at night knowing 1st of the month that direct deposit will hit. America needs to bring back pensions.
My wife and I are both educators. She's out in 7 years and I plan to retire---barring any health issues that arise---in 10 years. Each of us will receive a little more than $10K a month. (Teachers don't pay into social security in my state, so our S.S. earnings will be minimal based on other short-term jobs we may have had before the public sector.)
This was a nice light discussion on a very important topic. Now in my early 60's, I retired last year and when working, I would always ask others this question. Why, would you work for a company does does not offer a pension? Also, social security is not a pension it is designed to be only a supplement to a persons primary retirement account 401(k), 403(b), 457 plan, or a traditional employer sponsored pension plan. After the adoption of 401(k) type plans employees in the private sector most employees were supposed to have what, I was offered at my company during the 1990's which, was both a traditional pension along with an optional 401(k) with a two (2) percent to four (4) percent company match. In retirement my current monthly bills are covered fully using both, my private sector pension and my public sector pension plans. My social security goes into savings and, I have not needed to pull any money from my IRA, 401(k), or 457 plan (smile ... smile).
Great, important topic. Thx for the video. ❤ I retired with a small pension from my company. Definitely took the annuity option. It was a no brainer. Also, folks without a company pension can do what I did. Just take a portion of your retirement savings and make your own pension, by going out a purchasing a lifetime income annuity. The company pension I had was small. Too small for my needs. So I took a portion of my 401K and annuitized/pensionized it with a 100% joint life with cash refund SPIA. Viola, instant pension. 👍 I now have Social Security the company pension and SPIA all providing guaranteed lifetime income outside the market that covers all budgeted retirement spending leaving the portfolio free to be invested in 100% total global equity market, low cost index funds to support long term growth and additional discretionary spending. Again, I hear this all the time. Folks love their pensions, but they complain they don’t have one. Well, if the company doesn’t provide one, then just make your own with a lifetime income annuity. 👍
Luckily I have a private pension that I didn’t need to pay into. Also have a self funded 401k that was maxed out the last 25 years. Maxed out SSI at my full retirement age. It’s been a year and haven’t touched any personal savings. Just pension and SSI. Same spouse, same house, same job for over 40 years. Slow and steady wins the race. I wish everyone the best.
@billn9195 Not in our case or city. My husband is a licensed civil engineer who worked for a city for 35 years. He was paid way less than private sector. He was head hunted many times but stayed for the security and pension in the end. His colleagues made way over $150k a year where he barely made over 98k and that was at the last 4 yrs of service. Did not receive a raise for 10 years , city had a freeze and he had tapped out on step increases.
@@Sonoragrove4 no raise in ten years? Does not pass the smell test. In my county, they get the cost-of-living at least every year or two. They must’ve been trying to get rid of him, which proves my point . You can’t get fired . Total job security . How much price do you put on that? private sector would’ve fired him and then how much would you have been making for the past 10 years?
Folks can create their own pension with an immediate annuity. That, along with social security, can create an income floor for life, a monthly paycheck that lasts as long as you live. Any remaining savings can then be invested more aggressively, to cover fun money and long-term care contingencies. That's what we did.
That’s an 8% payout for the annuity option. I would take that, esp, if it is 100% joint life. Anything over 6-7% I’d definitely go for the annuity over the lump sum. In addition to the financial advantages a pension can make, it also helps with stress and peace of mind knowing that income is coming regardless of market volatility. I know I sleep much better in retirement knowing my wife and I have that paycheck coming for the rest of our lives. 👍
@@mikephilpot9857 exactly 👍 and now that interest rates have gone up a lot of these large lump sum payments have come down. Another reason to take the pension.
You need to understand one of the biggest holders of pension plans are Union Trade workers and through Unions provided workers with benefits that built this country and with the government guide lines to follow made it possible for an average work to look forward to retirement one day. as part of the American dream. Government can work ! and helped in making this possible
My wife has a pension and we’re considering taking the lump sum. I get the apparent safety of the cash flow, but you can use a guardrails approach and stay in a safe zone, plus if we get hit by the proverbial bus a month into retirement, our kids would get a couple million instead of zero.
Most pensions have multiple menu options to pick from. In NY, I can select a gaurantee 10-year payment. So if the bus hits me, there is still money left over. The cost is pretty minimal and taken from the income stream.
the pension are golden handcuffs for us. enduring terrible, no good bureaucratic work for that stream of income at the end. so hard to give up. we'd have to build a present value portfolio of millions to replicate that income stream.
Yes, they were the golden handcuffs in my case. The last ten years of my career, I felt half-dead, and looking back, should have probably left sooner. However, now that I have been retired for the last five years, life is sweet! I am living the dream. It was totally worth hanging in there for me.
I don’t love my pension. My small Social Security I earned prior to teaching is subject to WEP. If my spouse dies before me, I cannot get his Social Security due to GPO. My pension contribution while working was 14% of my pay. Unlike Social Security, I do not get a cost of living adjustment. That plus a low wage while working. 😢😢😢
If that’s your main concern take the lump sum. Some pensions have an option that pays out for 15 years guaranteed so If you die before 15 years the remainder of payments go to your kids.
@@dantheman6607 the guaranteed income is very conforting but that always comes with a cost. It seems like a big risk to me, even though leaving a huge inheritance isnt my primary financial goal.
@@03c5z It’s not an easy decision especially when you have kids. I look at it this way, my kids will get my house, retirement accounts, cash in the bank,etc. The pension is for me and my wife. Especially if you retire early ie < 60, the money may have to last 30 years.
Question : So if you have enough retirement savings to live on - wouldn't it make sense to take the lump sum & invest it - with the intention to leave the $$ to children/grandchildren?
This is not true. Stop lying or making snide comments about immigrants. You or your forefathers were immigrants to the U.S. Most new immigrants are hardworking, doing farm fieldwork, kitchen work, cleaning work, mowing lawns, meat processing plants, construction, etc., contributing to the economy. They don't come to take free money. They come for a better life.
Public sectors employees make more than private-sector in most cases. You are misinformed. Not to mention public sector never gets laid off. Look it up Jill
Not true. Public sector employees can get laid off. Now that being said…the benefits are usually pretty good. Wages…not near the private sector. Typically 10-20% lower. I’m in the public sector and have been for 20 years.
When you factor in wages, benefits, and 13 paid holidays, they do get paid more. Plus, I’ve never seen a teacher get laid off. There’s usually shortage. Prime example is California in Illinois pension, benefits and wages are basically bankrupting those states.
My father worked for carpenters union for 30yrs. He has a really nice income from pension and social security. He sleeps well at night knowing 1st of the month that direct deposit will hit. America needs to bring back pensions.
@@bryonsview Read “Work, Retire, Repeat” by Teresa Ghilarducci. She talks about this.
I have a pension, social security and a 401k. The best do both worlds. Made less during my working years and am happy with deferred compensation
this is what i plan on having for me when i retire. good setup!
My wife and I are both educators. She's out in 7 years and I plan to retire---barring any health issues that arise---in 10 years. Each of us will receive a little more than $10K a month. (Teachers don't pay into social security in my state, so our S.S. earnings will be minimal based on other short-term jobs we may have had before the public sector.)
freaking AWESOME! love you two
Love these videos
Thanks!
This was a nice light discussion on a very important topic. Now in my early 60's, I retired last year and when working, I would always ask others this question. Why, would you work for a company does does not offer a pension? Also, social security is not a pension it is designed to be only a supplement to a persons primary retirement account 401(k), 403(b), 457 plan, or a traditional employer sponsored pension plan. After the adoption of 401(k) type plans employees in the private sector most employees were supposed to have what, I was offered at my company during the 1990's which, was both a traditional pension along with an optional 401(k) with a two (2) percent to four (4) percent company match. In retirement my current monthly bills are covered fully using both, my private sector pension and my public sector pension plans. My social security goes into savings and, I have not needed to pull any money from my IRA, 401(k), or 457 plan (smile ... smile).
I love you guys. Keep it up
Thank you!
Great, important topic. Thx for the video. ❤
I retired with a small pension from my company. Definitely took the annuity option. It was a no brainer.
Also, folks without a company pension can do what I did. Just take a portion of your retirement savings and make your own pension, by going out a purchasing a lifetime income annuity.
The company pension I had was small. Too small for my needs. So I took a portion of my 401K and annuitized/pensionized it with a 100% joint life with cash refund SPIA. Viola, instant pension. 👍
I now have Social Security the company pension and SPIA all providing guaranteed lifetime income outside the market that covers all budgeted retirement spending leaving the portfolio free to be invested in 100% total global equity market, low cost index funds to support long term growth and additional discretionary spending.
Again, I hear this all the time. Folks love their pensions, but they complain they don’t have one. Well, if the company doesn’t provide one, then just make your own with a lifetime income annuity. 👍
You’re back!
Luckily I have a private pension that I didn’t need to pay into. Also have a self funded 401k that was maxed out the last 25 years. Maxed out SSI at my full retirement age. It’s been a year and haven’t touched any personal savings. Just pension and SSI. Same spouse, same house, same job for over 40 years. Slow and steady wins the race. I wish everyone the best.
@billn9195 Not in our case or city. My husband is a licensed civil engineer who worked for a city for 35 years. He was paid way less than private sector. He was head hunted many times but stayed for the security and pension in the end. His colleagues made way over $150k a year where he barely made over 98k and that was at the last 4 yrs of service. Did not receive a raise for 10 years , city had a freeze and he had tapped out on step increases.
@@Sonoragrove4 no raise in ten years? Does not pass the smell test. In my county, they get the cost-of-living at least every year or two. They must’ve been trying to get rid of him, which proves my point . You can’t get fired . Total job security . How much price do you put on that? private sector would’ve fired him and then how much would you have been making for the past 10 years?
I'd like to hear the pension availability stat ex government and union jobs.
Got three of them.
Folks can create their own pension with an immediate annuity. That, along with social security, can create an income floor for life, a monthly paycheck that lasts as long as you live. Any remaining savings can then be invested more aggressively, to cover fun money and long-term care contingencies. That's what we did.
So if a pension is paying you 40k a year or a lump sum of 500k which would you take??
That’s an 8% payout for the annuity option. I would take that, esp, if it is 100% joint life.
Anything over 6-7% I’d definitely go for the annuity over the lump sum.
In addition to the financial advantages a pension can make, it also helps with stress and peace of mind knowing that income is coming regardless of market volatility.
I know I sleep much better in retirement knowing my wife and I have that paycheck coming for the rest of our lives. 👍
@@mikephilpot9857 exactly 👍 and now that interest rates have gone up a lot of these large lump sum payments have come down. Another reason to take the pension.
Take the 40k a year
Annual amount
You need to understand one of the biggest holders of pension plans are Union Trade workers and through Unions provided workers with benefits that built this country and with the government guide lines to follow made it possible for an average work to look forward to retirement one day. as part of the American dream. Government can work ! and helped in making this possible
A military pension and VA disability is worth millions over a lifetime. 🙏🏾
Sometimes
@@edhcb9359 ??
Military pension, VA disability, SS and some variation of 401k / IRA or brokerage account you are golden.
@@anthonyvanburen3998 Blessed!!🙏🏾
My wife has a pension and we’re considering taking the lump sum. I get the apparent safety of the cash flow, but you can use a guardrails approach and stay in a safe zone, plus if we get hit by the proverbial bus a month into retirement, our kids would get a couple million instead of zero.
Most pensions have multiple menu options to pick from. In NY, I can select a gaurantee 10-year payment. So if the bus hits me, there is still money left over. The cost is pretty minimal and taken from the income stream.
Lump sum all day long! For multiple reasons.
@@CSARVAso you just heard her say many shouldn’t take the lump sum right?
the pension are golden handcuffs for us. enduring terrible, no good bureaucratic work for that stream of income at the end. so hard to give up. we'd have to build a present value portfolio of millions to replicate that income stream.
Yes, they were the golden handcuffs in my case. The last ten years of my career, I felt half-dead, and looking back, should have probably left sooner. However, now that I have been retired for the last five years, life is sweet! I am living the dream. It was totally worth hanging in there for me.
I was able to retire early because of my pension and a retiree medical plan at age 61. (40 years service). I take the monthly amount .
I don’t love my pension. My small Social Security I earned prior to teaching is subject to WEP. If my spouse dies before me, I cannot get his Social Security due to GPO. My pension contribution while working was 14% of my pay. Unlike Social Security, I do not get a cost of living adjustment. That plus a low wage while working. 😢😢😢
Thoughts about the disadvantages of passing and not being able to pass it to children?
If that’s your main concern take the lump sum. Some pensions have an option that pays out for 15 years guaranteed so If you die before 15 years the remainder of payments go to your kids.
@@dantheman6607 the guaranteed income is very conforting but that always comes with a cost. It seems like a big risk to me, even though leaving a huge inheritance isnt my primary financial goal.
@@03c5z It’s not an easy decision especially when you have kids. I look at it this way, my kids will get my house, retirement accounts, cash in the bank,etc. The pension is for me and my wife. Especially if you retire early ie < 60, the money may have to last 30 years.
Question : So if you have enough retirement savings to live on - wouldn't it make sense to take the lump sum & invest it - with the intention to leave the $$ to children/grandchildren?
I would but consult a CFP.
Or you could think of it this way, use the monthly pension stream to save the money in your 401k and IRA and let it grow. Your kids will inherit that.
@dantheman6607 💯
Government employees love to say they would make more in the private sector. But they wouldn’t. There is a reason they are government employees.
What size of Garmin is that?
Hilarious. Just as easy to find someone with a pension...
✌️🥳✌️🥳
Tell super smart investor dont-need-pensions guy to talk into the mike. Thats what its for.
He said it right the first time. "So So security" !!
Meanwhile illegals get there pension upfront just from entering the country! 🤣🤣😭😭
What a stupid comment - undocumented immigrants get nothing!
This is not true. Stop lying or making snide comments about immigrants. You or your forefathers were immigrants to the U.S. Most new immigrants are hardworking, doing farm fieldwork, kitchen work, cleaning work, mowing lawns, meat processing plants, construction, etc., contributing to the economy. They don't come to take free money. They come for a better life.
Public sectors employees make more than private-sector in most cases. You are misinformed. Not to mention public sector never gets laid off. Look it up Jill
not true...teachers get gutted the moment the public budget comes in lower.
@@EpicMCT Yah F the kids! lmao
Not true. Public sector employees can get laid off. Now that being said…the benefits are usually pretty good. Wages…not near the private sector. Typically 10-20% lower. I’m in the public sector and have been for 20 years.
When you factor in wages, benefits, and 13 paid holidays, they do get paid more. Plus, I’ve never seen a teacher get laid off. There’s usually shortage. Prime example is California in Illinois pension, benefits and wages are basically bankrupting those states.
Most teachers are quitting, firing you must be due to other factors.