Leave Pension?

[OFCash]

Hello guys!
I have a question for you all. I currently have a job with a company that has a 401k plan and a company paid pension. I have been with this company for ~12 years. I make a good salary but have to travel a lot. The company has also been selling lots of its US assets. I am not worried at all about losing a job, but the way things are going I may have to move or work overseas.. Neither of these things sit well with my family. I recently interviewed with a smaller company for a Monday-Friday job. It would be a ~15k cut in pay and I dont think I could ever make the money that I can make if I stay with my current employer. But there are some other perks that help make up for the loss in pay. The major thing that my current employer has that the new company doesnt is the pension. I am currently vested in my company pension and if I leave I get a set amount a month once I turn 65. Maybe $1500 or so. I do contribute the pre tax max to my 401k and would continue to do so plus the company matches my first 6% (current company is 7% match). Would walking away from a big company with a pension be a bad move?
Wife and I are both 35 combined we have about 200k in 401k's. We also have ~6 month EF.
Wife makes ~30k and puts 15% a year with a 5% match.
I currently make 120k, new job after bonus and allowances would get me about 100-110k.
7 years remaining on mortgage at 3.25% and just bought new truck 5 years at 1.99%
I daughter 15, have some college savings and contributing monthly to a 529.

[disneysteve]

Would walking away from a big company with a pension be a bad move?

Welcome.

I would never make a job decision based on the presence or absence of a pension plan.

I think you know the answer to the question already. If the travel is an issue and moving overseas isn't an option, then it is time to move on.

[bjl584]

Your finances look to be in fairly good shape. Without knowing anything else, I'd say that you will be able to take the 15K pay cut and still be okay. You may have to cut back some expenses here and there and your wife may want to consider part time work.

I'd think that this is more than a pure financial decision. Personally, I'd rather be happy with my career and my life in general than put myself in a situation that would cause stress just to chase after $15K extra in pay a year. There's more to life than money.

[OFCash]

Thanks for the replies guys.
I have run the numbers and not really worried about the monthly income and expenses, though we would have to tighten up a little bit.
I guess I worry about having enough in retirement.
I know pensions are hard to come by these days, but I also know lots of people retire everyday without them.

[Nika]

Where would you have to move? Moving overseas for a few years may be something worth exploring, especially with relocation bonus and tax treatment of foreign earned income. Being expat can be fun. In addition, in some countries your daughter may get quality education for a much cheaper price and your wife's job is easily replaceable when you decide to come back.

[disneysteve]

I guess I worry about having enough in retirement.

If your income drops, then by necessity your spending must drop. With lower expenses, the amount you need to save for retirement drops as well. So it all goes together. You may not achieve the nest egg you were shooting for but that will be okay because you won't need as much to live.

[snafu]

Pension: Have you explored the portability of your vested pension? How is your current pension invested? It's often a simple transfer to a new employer's plan or the cash value to a large provider like Fidelity or Vanguard without tax consequences.

Working Overseas: Depending on the country, taking an overseas job can be the best adventure of life for you, DW and DD. I recall the terror DH and I felt when he was seconded [loaned] to an American affiliate. We thought we'd be shot in the street, be burglarized daily and our kids education would be jeopardized. Fast forward a decade and we could hardly wait for departure date as his university loaned him to the university in Bangkok! Couldn't speak a word of Thai and wondered [not worried] about the famous traffic gridlock. Thought skytrains only operated in Disneyland, who knew that are mass transit in Thailand! Their Bumrungrad Hospital in near the top of the 10 best hospitals in the world according to Time magazine. We had more problems understanding American street talk slang.

In some locations you get a house complete with staff as a typical benefit. Shocking how fast you get used to a driver, cook/cleaner, maintenance and tailor at your service. I hope you don't write it off without learning the details.

[OFCash]

Snafu...the pension is not portable, my only option is to wait till I am 65 and get a monthly payment. They use a pension formula something like 1.6 X years of service X highest average of last 3 years of pay...to retire (and have any other option then waiting till 65 to get a monthly payment) you have to be 55 years of age.

The problem with the overseas positions that will be available is that we would work them on a rotation not move there. So 30 days gone and 26 home. Oil doesnt seem to come from countries that you would want to move you family to! I actually did a rotation for 1.5 years, the money is great but for my family and I its not worth it.

[LivingAlmostLarge]

Yes I'd leave it if it meant that I would have to uproot a family during high school years to build.

[Zedon]

If your income drops, then by necessity your spending must drop. With lower expenses, the amount you need to save for retirement drops as well. So it all goes together. You may not achieve the nest egg you were shooting for but that will be okay because you won't need as much to live.

So we are assuming they would also have a cheaper retirement lifestyle. That may not be the case. If they are going to have a very active spendy retirement regardless of the job he has now, it may mean he will have to work longer to have the same nest egg needed.

My job has a pension, I have been here for 15 years. Once I hit year 10 I knew I was in for the long haul. At least 20 years. A good pension is hard to come by these days. Guaranteed money for life.

I guess the big question for you is could you and your family deal with you being gone for half the year. You have a good chuck in your 401k's so you may be fine without the pension. Are you off the other half or do you work in the US those 26 days in-between rotations? Is that a permanent thing or just for a few years?

If you stayed with your company you'd get 2/3 of your current paycheck if you retired at 65. That's pretty big to leave on the table.