pension

[mikeh]

In last sunday' LA times, they had an article about a 62 yer old retired calif scool teacher who takes home, after taxes, about $60,000/yr in pension payout...meaning her pension payout before taxes is about $90,000/yr. (I think i should have been a school teacher) For the private sector equivalent 401 K to give this kind of a payout, it would have to be around $1,800,00...figuring a 5% dividend a year...which means that one would have to contribute about $55,000 for 30 years...taking into consideration the stock market wild swings up and down.
I think my 401 K is way behind...especially considering that, by law, we are only allowed to sock away $20,000 maximum a year.
How's your pension looking?
mh

[Morbid Angel]

its looking like nill

[lukx]

pension... what pension ?!

[tct70]

With the fact that in th UK the pensions are, in some cases, delivering less than was put in, my pension is very much on hold. As far as I'm concerned, I'm much better of putting my money into the mortgage and payng it off sooner. I told this to my pension guy when he asked if I wanted co start contributing again, and he agreed with me. Pay off the morgage, sell house when you don't nee the space and get a samller one, profit becomes the pension. Here at any rate, you will see a much bigger return in property than any pension.

[tricky]

With the fact that in th UK the pensions are, in some cases, delivering less than was put in, my pension is very much on hold. As far as I'm concerned, I'm much better of putting my money into the mortgage and payng it off sooner. I told this to my pension guy when he asked if I wanted co start contributing again, and he agreed with me. Pay off the morgage, sell house when you don't nee the space and get a samller one, profit becomes the pension. Here at any rate, you will see a much bigger return in property than any pension.

Isn't that putting an awful lot of faith in the value of property though, and also, how much would you have to downsize in order to make enough profit to cover perhaps 20-30 years of life after you retire? I hate the idea of, upon retitring, selling my home and moving to something much smaller to fund my retirement. It may well happen, but I wouldn't like that to be my only option.

Of course, we might all be working until we are 80, but I'd also hate to be doing that too!

[tct70]

Well I guess it depends where in the UK you live for a start. Property prices where I live, on average, double every seven years. This is of course not the same for the whole UK. On top of that I have taken a risk by buying the largest house I could a few years ago. It's a gamble I know, as at it's tough to pay all the bills, what with a global recession etc. But I hope to be able to down size to a nice place and put plenty in the bank, without living in a shoe box. Not paying into my pension at the moment just makes sense as the mortgage is more important.

[tricky]

Well I guess it depends where in the UK you live for a start. Property prices where I live, on average, double every seven years. This is of course not the same for the whole UK. On top of that I have taken a risk by buying the largest house I could a few years ago. It's a gamble I know, as at it's tough to pay all the bills, what with a global recession etc. But I hope to be able to down size to a nice place and put plenty in the bank, without living in a shoe box. Not paying into my pension at the moment just makes sense as the mortgage is more important.

I think we are all gambling really. I don't know what I'm doing tomorrow let alone when/if I retire

You have got yourself a larger house with a big mortgage, your funds are used up in mortgage repayments - an alternative is not quite as big a house so that some funds can pay a mortgage off and pay into some kind of pension pot and/or play the national lottery and/or bet on the horses and/or dogs! There are many ways to try and skin a cat.

Are you sure property prices are doubling every 7 years? That may have been the case 7+ years ago, but in my mind, that just can't be sustainable from this point (well, actually, from 2 to 3 years ago) forward. Oxford mirrors London quite closely, but I can't see the same massive growth in prices that we saw a few years back. Salaries would also have to follow suit, and they certainly haven't been following this trend. Also, the other factor is that the cost of living follows an upward trend.

Found this article which makes for an interesting read:- http://www.lovemoney.com/news/proper...ry-seven-years

[dmf-123]

I don't have much in the way of retirement, but I do live in California and am dating a teacher. That's gotta be the next best thing, right?

[tct70]

Very true fella. I don't expect the seven year rule to apply as a constant, but I hope the return will still outweigh the performance of any pension plan for the forseeable futue.

You're right, it is all a gamble though. But, let's remember that is what the pension funds do with our money. I just hope my odds are better.

[tricky]

I don't have much in the way of retirement, but I do live in California and am dating a teacher. That's gotta be the next best thing, right?

I would seal that relationship in wedlock sharpish!

[mikeh]

more retirement situations...My next door neighbor is a retired teacher and she travels constantly...
my neighbor on the other side is an ex-city of San Diego employee who is recently retired. He draws about $180,000 yr in pension payout. Working for the city of San Diego, your pension is based on your three highest years of earning. If you've been there for 30 years, you retire making more than you did as a full time employee. And, they have a program where you can retire, recieve your full pension pay and stay working for the city for five years...you are essentially getting double pay for 5 years. Of course, the city is broke and most of the taxes we pay go to paying city employees retirement...but if you're an excity employee, you are set. (I should have been a city employee)
mh

[tct70]

Similar problem in this country. Way too many civil servants, being paid way too much, for way too little!

[3DMK]

I don't have much in the way of retirement, but I do live in California and am dating a teacher. That's gotta be the next best thing, right?

Now that IS the next best thing.....as long as she doesn't divorce you...lol

[simon123]

Im married to a civil servant who works for the city they did have a great pension/ final salary scheme better than some banks! looks like it may be binned!
just gonna bunmp off the parents when they get passed it!

[dmf-123]

Haha. Seriously though, my girlfriend's gotten pink slips (a layoff notice if others elsewhere are unfamiliar) every year she's worked, and I think she technically gets laid off and rehired each year to the same job. Kind of bizarre...

A lot of teachers get laid off, yet there is just as much of a demand for students to be taught. In a free market, their salaries and benefits would adjust to meet the demand. But since their tenure and whatever means their pay isn't negotiable, we end up with too few teachers and some retiring better than CEO's....

Actually, I'm kind of relieved to hear others face this problem elsewhere in the world, I thought it was just us dumb Californians. Seems to me if we can't figure this out now -in a depressed economy when balancing budgets really matter- we never will.