Anyone Hoping for a Pension?

[ethics]

If you are my age, may I dash your hopes?

The cover of NY Times Magazine reveals that America's pension system is on life-support. One industry leader points out that employee longevity is no longer a valued trait and says, "A pension plan makes no sense in today's world. It's not wise for a company to make financial promises 40 or 50 years down the road. (http://www.nytimes.com/2005/10/30/magazine/30pensions.html)"

[Piobaireachd]

I'm already collecting one of mine from the US Government (thank you tax payers). It's my military retirement.

[ethics]

Good on you, Todd.

Most men your age and being in military have little to worry about. This is strictly for the 40 and under who were not, I guess. I have a feeling the corps. are going to go in to the "screw em" mode in the coming years.

[Piobaireachd]

I've always felt that you can't depend on much when it comes to pensions or "lifetime guarantees". I'm not holding my breath for Social Security. If I get it, fine, if I don't I'll still be fine.

Everyone should look out for themselves and their families and start investing early. I started in my mid 20's and wish I had started a good 5-6 earlier.

401(k)'s, mutual funds, annuities, etc. I wish high schools had a mandatory course about this as well as how not to bury yourself in consumer credit and how to balance a checkbook.

[ethics]

Agreed. I put a lot in 401K and plan to put even more come next year. It's not all I depend on but it will help. :)

[Swamp Fox]

I'm a self-employed professional, so I don't have a pension, but I don't intend to retire. I expect to live until at least 90, given my family history, and, with a healthy living and advanced medical technology, a 100 year old Stanley Foo is a good bet. So, if I work until 80, at least, I can still have a good retirement of a decade or two.

Retirement is for the birds.

[tke711]

I've always felt that you can't depend on much when it comes to pensions or "lifetime guarantees". I'm not holding my breath for Social Security. If I get it, fine, if I don't I'll still be fine.

Everyone should look out for themselves and their families and start investing early. I started in my mid 20's and wish I had started a good 5-6 earlier.

401(k)'s, mutual funds, annuities, etc. I wish high schools had a mandatory course about this as well as how not to bury yourself in consumer credit and how to balance a checkbook.
Agree on all counts. At the ripe old age of 32, I fully expect NOT to receive social security, and am planning accordingly. This means maxing out my 401K, ROTH IRA, and other various investments every year.

Of course, I'll probably die before I get to enjoy it knowing my luck, but at least I sleep well now knowing I'm doing everything I can for my family. :)

[jfcjrus]

Hell, even those already retired have concern.
Company's are trying to get out of what they've already promised!

You work 20-40 years, get your pention, and then the company says no, that's too much off our bottom line, sorry, we're stopping that!
Which begs one to question just what the hell are these bloated tax funded government oversight departments for?
I'm sure these companys took tax advantages for these plans, for decades.
So why is there now no government agency saying BULLSHIT!, you can't do that!
(Or, if you do, you owe $2gazillion from previous tax deferments!)

Just wondering.
Regards,

[Copzilla]

The thing is Gregg, you probably will indeed receive Social Security. It simply won't be but a fraction of what you contributed to it. The ratio of people paying into it will be much less when you're retired than what it is now, and it is a pay-as-you-go type system, not a saving system as it was originally intended.

I have several irons in the fire, for my retirement. I have a 457k fund, that I contribute about 7% to. I have my police pension that should be solvent - which has a lump sum option I'll probably take in order to make sure it doesn't belly-up on me when I'm 80, and Social Security may give me a boost. I'll also have my house paid off, which I'll be able to reverse mortgage if I need to, although I doubt I'll need it. Sam has similar options.

[tke711]

The thing is Gregg, you probably will indeed receive Social Security. It simply won't be but a fraction of what you contributed to it.
I'm sure you're right, and I'll get something. However, it makes it easier for me to plan thinking I won't get anything. That way, if I do get something, it's just an extra bonus on top of my planned retirement.

[Techie2000]

I'm sort of hoping my retirement will be funded by Powerball, because that will probably be the only thing left that will get me enough money to actually retire when I'm old. Actually I don't want to retire. I'd get bored.

[Piobaireachd]

I'm sort of hoping my retirement will be funded by Powerball, because that will probably be the only thing left that will get me enough money to actually retire when I'm old. Actually I don't want to retire. I'd get bored.

That's funny, the widow of the slain oil and petroleum minister from Nigeria is funding mine!

[John R. Beanham]

Not sure if this problem is apparent in the USA, but I assume it is.

Over here the average working life ends by about the age of 50/55, 'careers' come to a screaming halt for all but the 'top team', and the redundancy packages are handed out. These packages consist of the superannuation fund benefits, cash pay-outs and so on.

Some years ago the Government looked into its crystal ball and saw this and stopped ex-workers from getting their hands on the Superannuation component because they were spending it, and then lining up for a Government pension at 65.

NOW, we have a situation where the worked is retrenched at 55 and on his own for 10 years waiting for the Age Pension that is getting harder and harder to qualify for.

That 10 years leaves the worker with a bad choice, find ANY job at any wage, get on the Dole, or BS your way to a Disability Pension.


JB

[ethics]

Sounds like you have had it better than the Americans. We don't get squat till we retire (for me it's at 67 now) and even then, it will be a small amount as mentioned by the previous posters.