Anybody Buying Yet? Where’s the Bottom?

[Cammy]

Pensions that are not annually adjusted via COLA are worthless. I remember hearing stories about persons back in the 70's retiring from the big 3 auto makers with pensions of $450.00 per month after 30 years. They thought the slayed a fat hog back then.

If you have an annually adjusted pension now, you are ahead of many retirees because you need to have saved less for the same benefit. Regardless of what might have been, save as hard as you can wherever you are in your career. Max out 401k's if available as well as IRA's when you can. Get out and stay out of debt the sooner the better.

 

[Nick87]

Pensions that are not annually adjusted via COLA are worthless. I remember hearing stories about persons back in the 70's retiring from the big 3 auto makers with pensions of $450.00 per month after 30 years. They thought the slayed a fat hog back then.

If you have an annually adjusted pension now, you are ahead of many retirees because you need to have saved less for the same benefit. Regardless of what might have been, save as hard as you can wherever you are in your career. Max out 401k's if available as well as IRA's when you can. Get out and stay out of debt the sooner the better.

Is that a thing? In all the different trades I'm familiar with none of them have a COL adjustment on there pensions. At least locally to me.

 

[Dave N]

Is that a thing? In all the different trades I'm familiar with none of them have a COL adjustment on there pensions. At least locally to me.

Same.

 

[jryoung]

Pensions that are not annually adjusted via COLA are worthless. I remember hearing stories about persons back in the 70's retiring from the big 3 auto makers with pensions of $450.00 per month after 30 years. They thought the slayed a fat hog back then.

If you have an annually adjusted pension now, you are ahead of many retirees because you need to have saved less for the same benefit. Regardless of what might have been, save as hard as you can wherever you are in your career. Max out 401k's if available as well as IRA's when you can. Get out and stay out of debt the sooner the better.

Pensions are a defined benefit plan. Contributions are made and grown to reach that defined benefit.

On the flip side, 401k is and IRAs are defined contributions....those defined abouts/limits do increase regurlarly

 

[406dn]

Without a doubt, a monthly pension check that does not include a cola will become significantly diminished during a retirement. My wife's pension includes a cola. She has state pension. I suspect the vast majority of of pensions that do have a cola are government pensions.

Some employers, including mine, offer a lump sum option for your retirement benefit. An employer has to meet certain pension funding regulations to be able to offer a lump sum. Many employers are lagging in the funding their pension plan. I won't infer anything nefarious, but it could easily be a willful avoidance of a financial obligation.

I know quite a few coworkers who took the lump sum and did not manage it well. Some even had to return to the workforce. I also know many that have done really well financially in retirement.

I empathize with younger workers. Most will have multiple employers in their working life. Most employers offer a 401k with an inadequate match. Many 401k plans have fees that enrich the plan administrators too generously and erode the growth of an individual's account.

 

[Flatrock]

My mistakes were in my younger years. Having too much in one screaming (tech) sector before it crashed, having too much in the funds of one company (This goes back a ways and many may not remember the lesson, but the company was Janus, who at the time held the same exact underlying stocks in most of their funds, just different mixes. Got their hands slapped by the SEC due to a market timing scheme as well--but investors were not made whole.)

Yes I sure do know about Janus. That was the first investment I ever made. Bought it when I was 13 or 14. I mowed lawns for a summer, saved it up and bought the Janus Fund (I was a nerd like that). Even have my statements saved from all the way back then.

 

[BuzzH]

Is that a thing? In all the different trades I'm familiar with none of them have a COL adjustment on there pensions. At least locally to me.

Mine has a COLA...after you reach age 62. But, in the 5+ years before you reach age 62 if you retire at MRA and 30 or 60 and 20....you get the SS supplement which is roughly 80% of your SS at 62.

Pretty decent deal getting to draw SS before 62 though.

 

[Nick87]

Mine has a COLA...after you reach age 62. But, in the 5+ years before you reach age 62 if you retire at MRA and 30 or 60 and 20....you get the SS supplement which is roughly 80% of your SS at 62.

Pretty decent deal getting to draw SS before 62 though.

Guessing thats more of a government thing like @406dn mentioned.

 

[BuzzH]

Guessing thats more of a government thing like @406dn mentioned.

FERS.

 

[Nick87]

FERS.

If we had a COLA I woukd without a doubt go at 55 taking the 15% hit. Still trying my best to. So many guys are going into there 60's because our local is offering big incentives to stay to help with labor shortage. I hope its worth it for them. They are giving up there best years of retirement. Everyone's situation is different, may be hard for me to turn down what could be a significant amount. Enough to change the entire way you retire. I know one thing the local isn’t doing it banking on you collecting more money for a longer time, thats for sure.

 

[BuzzH]

If we had a COLA I woukd without a doubt go at 55 taking the 15% hit. Still trying my best to. So many guys are going into there 60's because our local is offering big incentives to stay to help with labor shortage. I hope its worth it for them. They are giving up there best years of retirement. Everyone's situation is different, may be hard for me to turn down what could be a significant amount. Enough to change the entire way you retire. I know one thing the local isn’t doing it banking on you collecting more money for a longer time, thats for sure.

Yeah, I think it depends on your job. In general I agree, retire as early as possible.

I've spent the last month working in the Black Hills on an 8 on 6 off schedule. Weather has been spectacular this spring, saw and/or heard turkeys gobbling every day, picked up a half dozen elk sheds, etc.

I also enjoy 2-3 horse trips a year at work into the Shoshone, BT, etc. It's still a job, but not sitting behind a desk.

I really like the people I work with and with a skeleton crew, we're a pretty tight bunch that really care about each other. Some of us have been working together for 26+ years. It was tough not taking the buyout last year, but I had it in my mind to retire at 60 with 40 years.

I plan on only working about 9 months my last couple years here, taking off starting October 1. The job won't be getting in the way of hunting season.

 

[Nick87]

Yeah, I think it depends on your job. In general I agree, retire as early as possible.

I've spent the last month working in the Black Hills on an 8 on 6 off schedule. Weather has been spectacular this spring, saw and/or heard turkeys gobbling every day, picked up a half dozen elk sheds, etc.

I also enjoy 2-3 horse trips a year at work into the Shoshone, BT, etc. It's still a job, but not sitting behind a desk.

I really like the people I work with and with a skeleton crew, we're a pretty tight bunch that really care about each other. Some of us have been working together for 26+ years. It was tough not taking the buyout last year, but I had it in my mind to retire at 60 with 40 years.

I plan on only working about 9 months my last couple years here, taking off starting October 1. The job won't be getting in the way of hunting season.

My last 5 years if I do go til 60 I've got some money invested to offset taking off pretty much the entire fall those 5 years. Do that and go til 60 will get me an additional 15% plus 5 more years of contributing credits. Seems like a good trade off. Who knows 15 to 20 years is a long time off still. Work with several guys who are trying to work as many hours as they can those last 5 years when they are pretty tired already. Thats a position I'm trying to avoid and imo probably too little too late anyway.

 

[Nick87]

Then again I've got better chances of not living til 60 then I do drawing most of the tags I applied for this year. Thats a fun way to look at it.

 

[mtmiller]

Mine has a COLA...after you reach age 62. But, in the 5+ years before you reach age 62 if you retire at MRA and 30 or 60 and 20....you get the SS supplement which is roughly 80% of your SS at 62.

Pretty decent deal getting to draw SS before 62 though.

My FERS supplement was based on 28 years of service, so comes out to about 70% of SS at 62. Unfortunately no COLA with it for the next 4+ years. Well done Elon.