Do you have pensions? Is it safe?
I think the elimination of so many pension plans of large corporation will have a profound impact on the financial security of millions of middle class Americans.
My husband and I have very secure pensions as of today. In equivalent dollars, we would have to have a raise of 20 to 30 percent to make up for it if we lost our pensions. My husband works for a top Fortune 50 company. He will get about 1/3 of his pay in pension at retirement given his years of service. Many of the younger people that started 10 years after he did will not have the same level of pension compensation. I get equivalent of 10 percent of my pay deferred to the pension account that invests tax deferred.
We also qualify for 401k, which is NOT the same as company paid pension. 401K is from your salary and you have the option to save or not. Many companies will match the employee contribution of 401k. However, this is only for the moderately well paid or the well paid employee. If you are barely getting by, then there is no extra money to go to the 401k. The company HAS to put money in your pension whether the employee saves or not. This is a safety net that many companies have taken away from their not-so-well-off employees.
We both have 6 figure incomes. We consider ourselves upper middle class not wealthy, since our wealth is tied to our income and not to "accumulated wealth" as is for the real wealthy. The very wealthy is driving this corporate squeeze as they want more return on their investment at the expense of their middle class employees.
I wanted to take a pole on what your pension plans are and how safe it is.
If you have lost your pension plan in the past few years, do you think your company compensated for it adequately for the loss?
And if you have lost it or don't have one, how are you making up for it to save for the retirement?
Did the pension plan affect your decision to take a job?