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It’s free 💵. Stop whining.
💩
Very rare to get a pension in the private sector these days. Be grateful for what you get.
It is ok. The longer you stay the more they put in. It is based on years of service and age. Annual return is 3.8%. Basically if you think about the poop match of the 401k plus the 3% (this is your floor once vested) for the pension, deloitte matches 75% on 6%. Not that bad in total but yes the parts are weak
I left after 5 years with ~20k (they roughly contributed 3k per year)... and the $ stays with the firms pension plan for you to draw one day (no rollover option to any personal account). Not very valuable in my opinion unless you make PMD
Amen D3
D5 is spot on. I’m just over $50k now with 11years. My calculations show it’ll be over a mil by the time I retire. I’ll happily take that poop money.
I’m business school hire and it’s been not bad - it’s a certain percentage (look up on dnet, it’s combo of your age and service years - so varies a lot) and if you start with a 100k+ salary it does add up, it certainly offsets how terrible the 401k match is. And yes, downside is the three years vesting but if you only spend two years at BCG as an analyst it’s not more than 15-18k - the retirement money comes in once you make money, that’s it folks.
I thought so as much
Would be nice to hear a few examples of what it’s worth over time. Obviously very contextual but helpful to know if we are talking $10 a month vs $1000 a month after x number of years
Yup. I've run a simulation and basically after 10 years it's around 50k cash value. It starts getting huge 25+ years because of compounding and the longer you stay, tbe higher the percent. But it takes a loooooong while for it to grow.
I'm talking low 7 figures. Hopefully by that time you are a P.
Thank you for the information. Pension is just another perk. I always knew I had it and checked it once. However, pension, 401K, and other investments I just assume they don’t exist in my mind. Even though I contribute $18,000/year into my 401K. I just don’t think about it.
At retirement, how does the payout work?