Beware of Retirement

[Guest]

12 hours ago, Celery Man said:

 

Surprised how many here are going to have pensions.

I've worked there almost 25 years... and our noobs don't have the offer of a pension.

It is indeed a benefit that is on the outs.

[Aqua Buddha 14786]

Do any private companies even offer pensions to new hires anymore?  I think the big auto companies do but anyone else?

Company I work for had them until like 5 years ago or something like that.  Everything was grandfathered in and the pensions were replaced with a really good 401K match but I'm not aware of any pension companies.

[Onboard 2.0 9083]

4 minutes ago, Aqua Buddha said:

Do any private companies even offer pensions to new hires anymore?  I think the big auto companies do but anyone else?

Company I work for had them until like 5 years ago or something like that.  Everything was grandfathered in and the pensions were replaced with a really good 401K match but I'm not aware of any pension companies.

Wife just started at an auto insurance co. that matches up to 6% for their 401K.

[Okie State 3888]

Do any private companies even offer pensions to new hires anymore?  I think the big auto companies do but anyone else?
Company I work for had them until like 5 years ago or something like that.  Everything was grandfathered in and the pensions were replaced with a really good 401K match but I'm not aware of any pension companies.

We have something called a 'cash balance pension' that's really just a savings account the company contributes to on our behalf based on years of service. It's not a lot, but it does build up after a while and is free money. I assume there are more than a few employees completely dependent on it.

They also do a 401k match and a program that distributes shares based on stock performance during the year.

[Doc Holliday 199]

I'm still 20+ years away from retirement and part of my plan, even today, is to train my new 4.5 month old puppy for service(s) at healthcare facilities.  Current pup failed the test because she licks too much and refuses to stop.  She also does a lil hop/jump to get to faces to say hi.   I'll start that up in a year or so when the puppy energy fades away some and plan to keep a dog around to keep giving back. 

Having a purpose or something to give back is important in life, in general and if you have "all the time in the world" during retirement, give back.  Help others, make someone smile, make someone forget about their "shit" for a few minutes.  

[South Austin 53158]

On ‎5‎/‎28‎/‎2018 at 3:11 AM, OatmealRaisinCookie said:

I’ve basically lived at Home Depot the last two months doing some DIY remodeling in my house and since then I’ve met some really great people. Howard in Lighting and Dave in Electric are two that come to mind, but a few more. Anyway the point is, the common denominator is they all retired from a “real” job but pick up hours in a crappy retail situation to interact with people and do something. Howard worked for TI as an engineer and now tells you which light bulbs you should buy, for example. I thought they had to have mismanaged their money but turns but this thread has educated me otherwise.

Hey, I guess they're right. Senior citizens, although slow and dangerous behind the wheel, can still serve a purpose.

[hornian 5281]

1 hour ago, RayDog said:

I am 56 and have been retired over 2 years since Abbott ordered my firing. It is the best thing that happened to me and I wish I did it 5 years earlier.

I fuck 4 or 5, 18 to 24 year girls a week and know guys who do 10+. I write a book a year and shorter papers in between. I eat good food and have expat friends I hang out with. I have traveled some and hope to travel more, but the Philippines is home now.

I highly recommend that if you are single or divorced  and have at least  $2000 a month for the rest of your life, retire now  and start living it up.

Some guys I know have fucking as their main hobby. Some golf, some play poker or trade stocks. There are MCs everywhere if you like the biker culture. Pick something you enjoy and stop working for someone else.

So you can buy 5 hookers a week in the Philippines on $2000 a month?

The more you know, I guess. 

[52-80 19375]

my employer cut the date for new entrants to their pension plan in the early/mid 2000s.  those hired before that still get grandfathered in.

they still offer pension for mobile/expatriate population, which i took advantage of.  my retirement pool is quite robust, although ive never sat around yearning for that date.  i enjoy having a semblance of day to day structure.

the wife has zero private retirement savings tho, only the federal pension.  its a cultural thing and it seems most of her cohort relies on that alone.  so im trying to kickstart something for her.  on the bright side, shes frugal in almost every aspect of her spending....

[Macanudo 13265]

2 hours ago, RayDog said:

I am 56 and have been retired over 2 years since Abbott ordered my firing. It is the best thing that happened to me and I wish I did it 5 years earlier.

I fuck 4 or 5, 18 to 24 year girls a week and know guys who do 10+. I write a book a year and shorter papers in between. I eat good food and have expat friends I hang out with. I have traveled some and hope to travel more, but the Philippines is home now.

I highly recommend that if you are single or divorced  and have at least  $2000 a month for the rest of your life, retire now  and start living it up.

Some guys I know have fucking as their main hobby. Some golf, some play poker or trade stocks. There are MCs everywhere if you like the biker culture. Pick something you enjoy and stop working for someone else.

Yeah, but have you met Elvis?

[Guest]

I've always figured I'm gonna work until I die. Before, it was because I was irresponsible, destructive, and compulsive in all the wrong ways. Now it's more of a choice, in the sense that I'm not too worried about saving for the future and am more interested in running my finances like a non-profit. I try to zero out disposable income every year while keeping a minimum amount of reserve cash in the bank.

[LeGarrette Blount's Punch 11]

Not much to add yet but I did want to say this is a great fucking thread.  Lots of good info and things to think about in here.

I feel like I'll want to retire asap but I also know I hate being idle.  I've got to start finding some hobbies.

[Orange&White 5566]

I work for a local government. I am 14 years in. I could retire in 6 years. I'd be 52, but my benefit would only be $3k a month. (This number supposes that I never receive another raise until I retire, which obviously will not be the case).

If I stay until I hit 25 years of service/57 years old, it goes to $4800/month. 

Aside from the money, I don't think I'd be ready to retire at 51 years old anyway.

If I stay until I am 62, my benefit from my job is $7400/month and my current estimate from SS would be $2500/month.

Right now, I am guessing I'll be ready to be done somewhere between 57-60, but obviously there are a lot of things that will factor into that decision between now and then. I do know that I will never be one to sit around and do nothing. That shit makes me crazy right now. I'd be one of those that died pretty soon after if I sat idle.

Edited May 29, 2018 by Orange^White

[Cheeseweasel 26439]

Great thread. I'm about 3-5 years away from "semi-retirement". I'll have enough money to retire, but I still want to work. I want to go work at Home Depot for 20-30 hours per week, punch a clock and give zero shits about being a boss. 

[troph 25099]

Both my folks are retired (mom a teacher dad was military). My mom has a receptionist type job and seems to love it and enjoys her friends and grandkids. She’s going strong approaching 70 and I have no concerns for her. My dad has been retired for a good while and he has hobbies (choir and photography), friends, some travel and church so he’s good too.

 

In about 12 years (youngest will be 20 and I’ll be 54) I’m going to want a lot more flexibility to go and do. I’m hoping for a part time set up by then with my firm and some investments. If I can pull that off I’ll work for another 10 years I think with it just balanced so I can go and do. By that time I’ll know what I want for 65 and beyond. Definitely get the desire for less stressful work, and don’t think I can survive without some amount of problem solving on a daily basis.

 

[Cheeseweasel 26439]

3 minutes ago, troph said:

don’t think I can survive without some amount of problem solving on a daily basis.

 

This. I HATE sitting around and watching TV. I'm going to be shitty at retirement.

[Kringelbert Fishtybuns 945]

Anyone that can't retire because they would be bored is severely lacking in imagination.  I also don't understand the people that can't retire because they need to feel important and can only derive their own self worth from others. 

That being said, if all you can afford to do when you retire is sit at home and rot on the fucking sofa watching the TV at maximum volume - then you have not planned accordingly.

[troph 25099]

This. I HATE sitting around and watching TV. I'm going to be shitty at retirement.

 

I don’t watch tv now hardly. Maybe 2 hours a week and once or twice a year I’ll binge watch a show.

 

I want to travel and work at the same time until I’m 60 ish, learn another language, immerse myself in another culture, fish, scuba, invest/do deals, play an instrument, play tennis, hike, play golf, surf, maybe learn how to sail a boat, and do all sorts other things. But I don’t see anything other than some amount of work giving me enough stress and problem solving opportunities which is what I need to stay balanced mentally.

[Dbeasy 15532]

Anyone that can't retire because they would be bored is severely lacking in imagination.  I also don't understand the people that can't retire because they need to feel important and can only derive their own self worth from others. 
That being said, if all you can afford to do when you retire is sit at home and rot on the fucking sofa watching the TV at maximum volume - then you have not planned accordingly.

Are you at retirement yet, or close? Just curious.

[Johnny Sack 8397]

5 hours ago, Aqua Buddha said:

Do any private companies even offer pensions to new hires anymore?  I think the big auto companies do but anyone else?

Company I work for had them until like 5 years ago or something like that.  Everything was grandfathered in and the pensions were replaced with a really good 401K match but I'm not aware of any pension companies.

Big law and accounting firms do.  One of my good friends is a partner at EY.  They have mandatory retirement in mid 50s.  His should pay out around $400-500k per year.

[Aqua Buddha 14786]

1 hour ago, Kringelbert Fishtybuns said:

Anyone that can't retire because they would be bored is severely lacking in imagination.  I also don't understand the people that can't retire because they need to feel important and can only derive their own self worth from others. 

That being said, if all you can afford to do when you retire is sit at home and rot on the fucking sofa watching the TV at maximum volume - then you have not planned accordingly.

There are different definitions of "retirement."  One is where you quit your corporate job and may do something else.  Another is where you quit working entirely.  Some people do both versions and some people just combine the two.  Don't be the latter.

[Aqua Buddha 14786]

1 minute ago, Johnny Sack said:

Big law and accounting firms do.  One of my good friends is a partner at EY.  They have mandatory retirement in mid 50s.  His should pay out around $400-500k per year.

That's tied up in their partnerships, though.  Also, are those pensions or just equity buyouts?

[Johnny Sack 8397]

2 minutes ago, Aqua Buddha said:

That's tied up in their partnerships, though.  Also, are those pensions or just equity buyouts?

Don't know.  I am not in big law anymore.  My buddy calls it a pension and says his "vests" around age 50 or so.  Where he could leave before mandatory retirement and still get most of it.

 

[Aqua Buddha 14786]

6 minutes ago, Johnny Sack said:

Don't know.  I am not in big law anymore.  My buddy calls it a pension and says his "vests" around age 50 or so.  Where he could leave before mandatory retirement and still get most of it.

 

Wife's dad was an early and very senior partner in one of the Big 6.  He retired at 55 (not mandatory for him) and they paid out his equity in ten annual installments.  Sort of a pension, sort of not, I guess.

[Kringelbert Fishtybuns 945]

33 minutes ago, Dbeasy said:

Are you at retirement yet, or close? Just curious.

No, hopefully less than 20-25 years out as we still have young kids.  I have watched my parents recently retire and my mother in-law contemplate it.  My parents were both afraid until they did it.  Now they love it.  They have constant little projects going on around the house.  They never have a schedule and decide to travel at the drop of a hat.  My dad is building all sorts of shit now that he never had time to do before.

My mother in law has enough money to retire and live another 100 years doing whatever she wants.  She says she can't retire because then what would she do.   The concept of "whatever you want to" doesn't seem to register.  When talking to her, we fish for things like her church, charitable causes she believes in to volunteer, hobbies, etc.  She gets excited and then does a complete 180.  I thought maybe she just couldn't admit that she liked her job and just wanted to work, but then I see replies in this thread and think otherwise.   

I get liking what you do for a living.  Maybe I am defining retirement differently from everyone else.  Retirement for me will mean when I can say "Fuck it, lets go bowling" the second I want and doesn't make a shit.  

[Johnny Sack 8397]

Just now, Aqua Buddha said:

Wife's dad was an early and very senior partner in one of the Big 6.  He retired at 55 (not mandatory for him) and they paid out his equity in ten annual installments.  Sort of a pension, sort of not, I guess.

My friend tells me his is guaranteed payments for life -- something like 30% or so of his top 3 earning years.  And if he predeceases his wife, she gets the benefit until her death.

[clapclapclap 9000]

No need to retire (unless she starts hogging it.)

 

[Wiler77 1622]

I'm 41 so quite a bit away from retirement, but I'm watching opposite ends of the spectrum when it comes to my parents vs in-laws.

My parents: My dad retired at age 55 back in 2001.  Never had a concern about being bored and hasn't had an issue with it.  But he and my mom stay active.  My dad golfs 1x a week, goes flying 1x a week, they take 2-3 fairly good vacations per year (minimum 2 weeks), they go out to eat with friends a few times a month, they have grandkids in Houston they go visit, and I have 3 kids they babysit a couple times a month.  They also try to go out to Town Lake a couple times a week to go for a walk than out to eat somewhere.  Up until 2 years ago, they had a boat on Lake Austin, and they'd just go out cruisin' during slow hours during the week.  And my dad reads a ton, and always has, and that hasn't slowed down at all.  They've had a great retirement and he hasn't thought twice about it or even halfway considered taking a part-time job.

My in-laws:  My FIL is a 71 year-old OB-GYN and will die at the hospital.  He took an Administration job at his hospital a few years ago (in addition to running his own practice) and the hours have just about killed him.  He "resigned" from that position a few months ago to be effective June 1, but unbeknownst to the family until 2 weeks ago, he rescinded that resignation.  So he's going to keep working 14 hour days for the next 2 years until his contract expires, and then he'll be back to just his one job running his practice.  The family is completely bitter over the whole thing since he was absent for every major event when his kids were growing up, and now history is repeating itself with his 7 grandkids (#8 on the way).  The problem is when I step back and look at him, he doesn't have any real hobbies.  He likes fixing things, and I'm sure he could stay busy for a few months getting things done around the house, but eventually the work dries up.  My guess is he's scared to death of not working.  Being a doctor is about the only thing he truly loves doing, his patients love him, he can't stand spending time with his wife--so he figures, "why retire".

[Guest]

Surprised I'm not hearing more stories like whats happening wiht my MIL. Her son in his 30's doesnt work and has kids and she basically has to support him and his kids, so she was retired and now is "Semi-retired" in that she has to work to basically pay for him and his family. With how many "boomerang generation" kids you retired surlsters have, I'm surprised not more of you have been gullible enough to enable such things.

[PantsTent 2003]

20 minutes ago, Wiler77 said:

My FIL is a 71 year-old OB-GYN and will die at the hospital

Undefeated.

 

[52-80 19375]

54 minutes ago, Wiler77 said:

 

My in-laws:  My FIL is a 71 year-old OB-GYN and will die at the hospital. 

Old geezer wants to sniff strange vag unti he croaks.  That's not news to anyone.

[Brothahorn 10097]

Surprised I'm not hearing more stories like whats happening wiht my MIL. Her son in his 30's doesnt work and has kids and she basically has to support him and his kids, so she was retired and now is "Semi-retired" in that she has to work to basically pay for him and his family. With how many "boomerang generation" kids you retired surlsters have, I'm surprised not more of you have been gullible enough to enable such things.

She should sue his sorry ass.

[Spaulding Smails 1610]

Great thread.  It's been interesting to experience my parents vs. my in-laws and their respective approaches to retirement.

My parents were both very active.  Mom has lots of community volunteer work, participates in every neighborhood group imaginable.  When she retired 10 years ago, it seemed as if nothing changed.  My dad retired six years ago from a C-suite job at a Fortune500 company.  He didn't really have any hobbies, activities, etc when he retired.  t suspected he'd miss business and start his own gig.  He consulted for 2-3 years, then hung it up completely.  Since then, he's absolutely kept himself busy.  Joined a band (was and still is a kick ass drummer, older than all the other members by 20+ years), helps my mom in some of the neighborhood groups, and we just recently bought a ranch in Kimble Co.  They're busier now than they were when they both worked.  Both incredibly healthy.  

My FIL retired from his full-time job last year via a forced retirement / severance.  Literally came out of nowhere and he hung it up with about one week's notice.  Still has a side business that he runs, but he hates it.  Ready to sell it.  He spends the majority of the time at his lake house just hanging out.  Fishes some, but not much.  Health has already started to decline in that year since he hung it up.  MIL has now pushed back her retirement four times in the last two years.  Latest was from July 1 to March 1, 2019.  I think it's because she doesn't want to be stuck with the FIL all day.  There's also no other activities and she's scared of having some extra spending money.

Just two very different situations.  The best way I can summarize it is proactive vs. reactive retirement.  I don't think it's smart to retire unless you have a game plan and know how you want to spend your time.  

As someone who's self-employed, I don't know that I'll ever retire.  I can totally see myself working 20-30 hours/week as long as possible even if I am "retired".  But, that's still a long ways off.

 

[High Plains Drifter 11163]

My mom worked for the state government her entire life. She bitched constantly about her job. When she retired, my siblings and I thought we would finally get a break from the bitching. Now she watches fox news all day, and bitches about Hillary. I can't stand to be around her.

[High Plains Drifter 11163]

  I work part time for a University (not UT), mainly for the insurance. My wife is the breadwinner, and travels a lot. I stay busy working on our 40 yr old house, gardening, yard work, taking care of the kids, playing a little golf, working out. I could do this for the rest of my life and die happy.

[Guest]

More like a getting High, golf Playin' Drifter to me.

[kmac30 416]

We have something called a 'cash balance pension' that's really just a savings account the company contributes to on our behalf based on years of service. It's not a lot, but it does build up after a while and is free money. I assume there are more than a few employees completely dependent on it.

They also do a 401k match and a program that distributes shares based on stock performance during the year.

How old are you? A cash balance is more than just a savings account and typically benefits older employees/owners the most.

[Okie State 3888]

How old are you? A cash balance is more than just a savings account and typically benefits older employees/owners the most.

33. How is it different? Seems to be cash deposited into an account that earns interest. Maybe I'm wrong.

[kmac30 416]

33. How is it different? Seems to be cash deposited into an account that earns interest. Maybe I'm wrong.

It’s invested and should be earning more than what a bank account is earning. 4-6% is what a cash balance should be set at. It’s a defined benefit (pension). You’re too young to get the most benefit. Not sure how big your company is, but let’s say the owner is 65. He’s able to put away 200k+ (depending on a few things) and that counts as a business deduction.

[Spoosner 87]

3 hours ago, Johnny Sack said:

My friend tells me his is guaranteed payments for life -- something like 30% or so of his top 3 earning years.  And if he predeceases his wife, she gets the benefit until her death.

I'm at a Big 4 firm one step away from Partner.  Hoping to make it in the next 3-5 years.  At my firm, optional retirement for Partners is at 55, mandatory at 60.  My understanding is the only reason to stay till 60 is more money (i.e. annual bonus).  The retirement money is referred to as a pension.  I don't know what would happen to pensions if there was a crazy collapse of the the firm (i.e. Enron/Arthur Anderson), but I really can't fathom that happening. 

You won't see me at the office after my 55th birthday.  Golf, travel, going to football/baseball games with my son (who will have just turned 21), pick up some additional hobbies, etc.  Hell, I could follow the Astros around the country for 9 months of the year and be happy as a clam.  55 sounds nice and early, until I remind myself that's 21 years away.

[Okie State 3888]

 

 

 

It’s invested and should be earning more than what a bank account is earning. 4-6% is what a cash balance should be set at. It’s a defined benefit (pension). You’re too young to get the most benefit. Not sure how big your company is, but let’s say the owner is 65. He’s able to put away 200k+ (depending on a few things) and that counts as a business deduction.

 

Ours has a percentage of pay contribution dependent on age and years of service. It then has an interest component that is tied to Treasury rates. Once vested, you can take an annuity or lump sum when you leave the company or retire.

 

As mentioned, this is just one component of savings available to us. This one is free to everyone without you doing anything.

[Johnny Sack 8397]

1 hour ago, High Plains Drifter said:

  I work part time for a University (not UT), mainly for the insurance. My wife is the breadwinner, and travels a lot. I stay busy working on our 40 yr old house, gardening, yard work, taking care of the kids, playing a little golf, working out. I could do this for the rest of my life and die happy.

My brother in law is in the same boat. His wife is majority partner at a decent sized law firm she started.  He takes care of kids and earns money on the side with a business he buys used refinery byproducts, cleans and re-sells. He also owns a bar that his partner manages.  Does pretty well and has enough to do where he doesn’t look like a stay at home dad.  And also contributes by taking care of the kids. Not a bad deal for either of them. 

Edited May 29, 2018 by Johnny Sack

[kmac30 416]

Got it. Guess it must have been set up a while ago. As you said, it’s free money!

[Okie State 3888]

Got it. Guess it must have been set up a while ago. As you said, it’s free money!

I know the pensions for the older employees are significantly different than this one. I assume theirs is more traditional, but I'm not sure.

[Reagan1k 3042]

Defined benefit pensions are largely a thing of the past (paying a monthly benefit for life that is defined based on years of service and average income).  That's all been replaced by defined contribution plans (cash balance) / matching 401(k) plans where the company has a fixed or variable obligations to contribute, but not an obligation to provide a set income for life.

Some small exec-heavy firms in professional services still run defined benefit plans because the contribution levels are so high that they can sock away a ton of money, but for companies with a typical rank and file workforce that's no longer viable.  The financial liability and on-going compliance costs are a killer.  

[52-80 19375]

59 minutes ago, Okie State said:

1 hour ago, kmac30 said:

How old are you? A cash balance is more than just a savings account and typically benefits older employees/owners the most.

33. How is it different? Seems to be cash deposited into an account that earns interest. Maybe I'm wrong.

might be similar to mine.  my pension is defined-contribution, meaning i get out as annuity what i put in (rather than a formula e.g. based on best earning years).

the defined-contribution formula:  x% of salary deducted, to gain y% as annuity benefit.  

say, for 10% & 5% @ 100k salary, annually they take 10k so you build 5k of benefit.  do that for 30 years and you build 5k*30 = 150k yearly payout until you die.  

***

tied to that pension plan is an optional "additional voluntary contribution".  you define the % and it is pretty much a pretax savings account, investable in all the typical 401k routes 

[kmac30 416]

Defined benefit pensions are largely a thing of the past (paying a monthly benefit for life that is defined based on years of service and average income).  That's all been replaced by defined contribution plans (cash balance) / matching 401(k) plans where the company has a fixed or variable obligations to contribute, but not an obligation to provide a set income for life.
Some small exec-heavy firms in professional services still run defined benefit plans because the contribution levels are so high that they can sock away a ton of money, but for companies with a typical rank and file workforce that's no longer viable.  The financial liability and on-going compliance costs are a killer.  

Cash balance is a defined benefit, not defined contribution.

[Dbeasy 15532]

Anyone that can't retire because they would be bored is severely lacking in imagination.  I also don't understand the people that can't retire because they need to feel important and can only derive their own self worth from others. 
That being said, if all you can afford to do when you retire is sit at home and rot on the fucking sofa watching the TV at maximum volume - then you have not planned accordingly.

One of the drivers for starting this thread is exactly what you’ve just described. Some of these retirement candidates have done a great job of separating their self worth from their job and established fulfilling hobbies and activities. Yet, when faced with the actual implementation of that plan, it’s not feeling like the right move. It’s hard for me to explain it but I can feel it too, like others.

[troph 25099]

I worked at one of the Texas Big Law firms that had defined benefit plans, they did away with it for new partners. A source of contention when measuring PPP for AmLaw100 rankings (always a tad lower than counterparts) and for new partners when they did away with it. I’d be surprised to find Big Law still doing defined benefit plans.

[RayDog 682]

10 hours ago, hornian said:

So you can buy 5 hookers a week in the Philippines on $2000 a month?

The more you know, I guess. 

I know a guy who never pays more than  $14. I pay $20 to $30 usually. Girlfriends are more expensive than freelancers usually. If you want lots of girls you should budget more money. It is best to avoid buying ladies drinks and bar fines if you are on a budget.

[Judge Roybeanbag 11858]

I’ll maybe retire in the next 10 years. I’d like to create a sort of “life coach” business kinda like that old guy in into the wild, where you can teach kids stuff their parents either don’t know how to do or don’t have time for.  Changing tires and oil in cars, fixing clogged sinks, hell saddling a horse or keeping a lawn mower in decent condition. Cleaning behind the refrigerator with a shop vac.  Probably wouldn’t be successful but I know with my 18 year old boy it has been cool teaching him that small but essential stuff that my old man never had time to teach me.   How to run a house and when to call for reinforcements.