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Which consulting firm has the best 401k match?
Does 401k count as savings?
Im so happy! I just paid off all my debts!
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Not a Big 4 consultant anymore, but it's better than that. It's the average of your top 3 years of salary as an annuity. And most end up making more than 3-400k if I remember correctly.
It is the best potential benefit but the risk is in it actually being there. The avg age of an S&P company in 1965 was 33 years and by 2026, it is forecasted to be 14 years with 50% of those companies being expected to fall off. So at this rate of disruption, do you believe your company be there in 40? Will it have enough people and revenue to cover the overhead of a pension?
Problem is the stress catches up to you and you only live to 65
Yea, but then you have to spend your career at EY ...... 🙊 (shots fired haha)
Recruiters....
Not underrated when it only applies to 2-3% of people
Is this real? That's crazy. I guess you do have to sign your soul over though
Don't worry it'll be massively underfunded when we make it to partner level.
How can healthcare benefit be better than 400k cash? (Also, its only salary, not full compensation, that's why it's 400ish instead of 1M ish)
OP ... nothing about the partner pension is underrated. Its the main reason ppl stay at EY (or D). Its the golden ticket.
It's funny how closely guarded partner comp is if they truly mean that they want to see all of us succeed and make partner 🤔
*spoilers* they don't mean it
Where'd you hear that? Anything is better than relying on social security and paltry 401k balances getting you past 75...
The second someone monkeys with the defined benefit pension, anyone with talent will leave. They better figure out a way to fund it. The entire comp model is to make less than you would in industry for a bigger parachute at the end. I thought you couldn't draw 100% until 60 though. I'd really like to partially vest with 10 ish years in partnership and 25 in firm and retire at 50... I don't want to earn all of that and then only enjoy it for 2 years before I die.... dreaming tho.
The math is different now, it's not a defined benefit but the firm will contribute significantly during your years as a Partner. Spend 10 years as a partner and expect $3M in your retirement savings, still not too shabby but no longer $400K/yr until you croak.
Yeah it's wild
How has it changed? EY one is 400k per year if you fully vest (meaning make Partner by your early forties)
Didn't Deloitte just change theirs in January? Used to be units based - now there's a lump sum and lower drawings?
EY4 is right... defined benefit plans are old news and horrible unfunded. Don't count on it.
Consider the impact of technology, automation and potentially innovation like Block-Chain and what will that do to repetitive work like tax/audit. Tax/audit make up the majority of business for the Big4 aside from Deloitte, so less work means less people and revenue and then consulting has to carry the burden of the pension for tax/audit. Newer firms don't have that overhead and this market is far more competitive now than a few years ago.
Agree, how in the world is it underrated. Talked about all the time