Thread: A pension

I think if the company goes into the tank, the government takes over and decides how much your pension you should get.

Originally Posted by JimmyHAD

I don't know much about money except how to spend it but I believe that with a pension you're federally protected to get something even if the fund source goes into the tank. I don't know if it is that way with the 401k type thing.

We don't have 401K's up here...but RRSP's are pretty good.

As an Ontario teacher, we have an excellent pension to pay into. Hopefully it doesn't go bottoms up by the time I retire. I'm not eligible for another 27 years (and yes....I can hear many of you laughing right now and saying..."young pup").

I contribute 5% of my net income outside of my pension to RRSP's every month, as well as 5% of my net income to a rainy day/emergency savings account.

My goal is to retire with more comfort than my working years. I'm stiff now to be relaxed later. Some may laugh at this. Some may say things may change. All of that is ok, as long as I believe what I'm doing is right.

I want to be sitting on a dock with a Labatt 50 while my other friends who continually "keep up with the Jones'" are till plugging away.

Jimmy, congrats on your pension, and I wish I could have met you when I was getting my last couple tattoos done. I feel you can never have enough....and SWMBO feels that less is more. Alas....

Congrats,
Maxi

Originally Posted by JimmyHAD

I was a teenager when I started doing union ironwork. One of the things older folks told me was that someday I would be glad to have the pension benefits. Knowing I wouldn't live to be 30 I didn't appreciate that. When I passed 30 I still didn't think much about it, it was so far away.

I did 20 years erecting structural steel and got out of it due to injuries incurred on the job. The dark cloud, worst thing in the world at the time, had a silver lining and I've been a pro tattooer since then.

Today I will cash my first pension benefit check. It is not that much but enough to cover my mortgage and go out to dinner with the change. To all of you young folks out there, if you can get a job that offers pension benefits grab it.

Pensions are definitely not where they used to be. My father is a union carpenter and can tell me exactly where his pension will be in x years / hours submitted / whatever. My company has an odd pension structure on top of a 401k program. I'm just hoping both will be around by the time I'm ready to be put to pasture.

this is going to sound like a dumb question, but I'm curious:

how is a pension substantially different from an employer-matched 401k? I entered the workforce in the last 10 years, so I've never even worked for a company that offered such a thing.

I invest heavily in both 401k (+company match) and a Roth IRA... I don't expect to ever see a dime of social security and anyone who's planning on that is pretty naive.

As I said before, once a person is vested with the requisite number of years they will get their pension. If the company goes belly up they will still get some of it through a federal program guaranteeing it. I don't know about 401ks or other investments like that. From what I read in the paper Enron employees lost it all thanks to Kenny boy and his cohorts. IOW, isn't it market based ? Is there a guarantee that you'll get what you've got coming ? FWIW, I am looking forward to the social security in four more years.

a 401k is basically an investment account, and you can invest with it however you like. sometimes an employer will limit what investments you can do to a preselected list of mutual funds, but good 401k plans let you buy stocks, commodities, whatever.

that way, the only limit on how much you have is how good you are at investing

If you are in line for a pension and the company squanders their money and goes under and the plan is not funded the Govt will take it over but unless you worked for peanuts you will never get anything close to what you should have.

Also there are two types of pensions. One is where it's a benefit of your employment and you pay nothing into it and often times your not vested until a year or two before retirement. The pension is just a promise and nothing more.

The other type is where you pay into a plan and that's more secure. If you have a 401 type and the economy tanks you can loose it all that's why all this talk of privatizing social security. If it's privatized and the market tanks your social security goes bye bye.

Congratulations on your pension Jimmy. I am eligible for my pension as a Union Electrical Worker in one week and I am so glad that it is in a defined benefit program instead of an annuity. It is as guaranteed as anything can get and it pays until I die. We always referred to our annuity as our gambling money and i will have to say our pension has vastly out performed my annuity. I am happy to hear you are finally getting yours. Thank God for pensions and Unions.

Originally Posted by thebigspendur

Yea when I started working for the Federal Govt all my friends made fun of me and over the years out earned me by plenty. However now I'm retired and getting that check every month and the medical benefits and they are still working and will be for many years to come. Funny they don't bring up the job thing anymore.

Anyone who changes from pension to 401 is crazy unless you work for a private company and then if they go under you can loose most of you pension too.

He who laughs last, laughs best. Take Uncle Sam deep, you earned it.

Originally Posted by JimmyHAD

I don't know much about money except how to spend it

I am with you on this one. I did, however, marry an accountant.

Originally Posted by Slartibartfast

I think if the company goes into the tank, the government takes over and decides how much your pension you should get.

Yep, there is a federal fund. State Pensions are protected because States cannot declare they are bankrupt. The first thing they have to pay is their pension obligation especially if it is partially employee funded, which most are.

Jimmy, I didn't know that we had an ink slinger in our midst. Where do you tattoo at? I've been thinking of getting a straight razor tattoo, and it would be nice to get it from somebody who's actually held one before.