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Author: SRenaeP Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5806  
Subject: Fast lane extended Date: 8/2/2010 8:16 AM
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This weekend I read the information booklet for my company-provided pension plan. Somewhat surprisingly, none of the retirement-aged people I talked to at work know how it works so I decided to see for myself. I knew that you could start receiving your benefits at age 55 (which was my plan, after retiring at age 51). However, I was disappointed to learn that if you quit the company prior to age 55, regardless of when you start your benefits, the amount would be reduced by ~40%!

This means four more years of work. DH doesn't mind delaying our retirement a bit (he works for the same company and isn't as gung ho about FI/RE as I am) but it sucks to me. Bleh.

-Steph
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Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5757 of 5806
Subject: Re: Fast lane extended Date: 8/2/2010 9:47 AM
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>> However, I was disappointed to learn that if you quit the company prior to age 55, regardless of when you start your benefits, the amount would be reduced by ~40%!

This means four more years of work. DH doesn't mind delaying our retirement a bit (he works for the same company and isn't as gung ho about FI/RE as I am) but it sucks to me. Bleh.
<<

Bummer, but there is a bright side: At least folks with a pension *have* a slow lane to move into. We poor 401K schmucks are finding that slow lane pushed farther and farther down the horizon. Glass half full. :-)

#29

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Author: SRenaeP Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5758 of 5806
Subject: Re: Fast lane extended Date: 8/2/2010 10:48 AM
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Bummer, but there is a bright side: At least folks with a pension *have* a slow lane to move into. We poor 401K schmucks are finding that slow lane pushed farther and farther down the horizon. Glass half full. :-)

#29


That's true but with 21 years until retirement, there are no guarantees that the pension plan won't change by then. I'm maxing out the 401k and the IRA too. On the bright side, we have four more years to get the mortgage paid off. We're in four years into a 30 year loan and I want to have it paid off prior to retirement.

-Steph

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Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5759 of 5806
Subject: Re: Fast lane extended Date: 8/2/2010 11:17 AM
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>> That's true but with 21 years until retirement, there are no guarantees that the pension plan won't change by then. I'm maxing out the 401k and the IRA too. On the bright side, we have four more years to get the mortgage paid off. We're in four years into a 30 year loan and I want to have it paid off prior to retirement. <<
Yeah, true, especially if it's a corporate plan. I had one frozen on me quite a few years back. It really is feeling like a long, comfortable retirement for most people was an economic anomaly that is slowly working its way out of existence.

Hope it all holds together. :-)

#29

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Author: AliFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5760 of 5806
Subject: Re: Fast lane extended Date: 8/24/2010 3:36 AM
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I can't imagine job security -- much less with the same company -- for over 20 years. If you can do it (and want to), good for you! : ) --AF

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Author: SRenaeP Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5761 of 5806
Subject: Re: Fast lane extended Date: 8/24/2010 8:59 AM
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I can't imagine job security -- much less with the same company -- for over 20 years. If you can do it (and want to), good for you! : ) --AF

As far as jobs go, it's not bad and the pay is good. It's also a large corporation so there's always the option of changing divisions or business units if need be. DH has been here 14 years and two business units. I've been here nine and two. Given the current state of our line of business (more business than we can handle), I think we could realistically retire from here if we so choose.

-Steph

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