My partner and I both have pension plans, he is municipal and I am state. Mine is not that great unless I stay with the state for a VERY long time. If I retire around age 70 I should get a pretty solid pension, about 80% of average of my three top earning years, with annual cost of living adjustment. The formula is incredibly complicated, incuding numerous variables, and I have no idea what my top earnings are likely to be when I am in my 60's. I am 29 now and 2 years in. The benefit drops steeply as you retire earlier. The old timers are in a much more generous plan. Most of my young colleages went for the 403b plan which the state matches generously. I think that employee contributes 5% of their earnings and the state matches with 7%. Not bad. My father had a chance to get into the state pension plan at the beginning of his career and opted out because he did not think he would stay very long. Well, turns out he worked there for 18 years, and would now have incredible pension with 100% health/dental for life if he had opted in. I also like that the state of Connecticut is on the hook for part of my retirement, so I dont need to shoulder all the risk of investing for my retirement. Here's hoping that I live long enough to enjoy it!
My parents do not have pensions, but a lot of my elderly neighbors do and I can appreciate the added peace of mind that guaranteed income stream gives them.
Last edited by JBL : 04-15-2008 at 06:58 PM.
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