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My former employer set up all employees with a 401K plan, the name changed from "TDRP" (tax deferred retirement plan), my plan, to "TDSP" (savings plan) for employees hired after 1998.401K's are voluntary. I work in HR for an organization of 3,663 people. The number of people participating in a 401K is actually pretty low as percentage of total employees. That percentage shifts radically depending on the level of EE. Low level EEs have very few 401K and participation increases as salaries increase.
My former employer set up all employees with a 401K plan, the name changed from "TDRP" (tax deferred retirement plan), my plan to TDSP (savings plan) for employees hired after 1998.
All employees receive the $1500 max contribution every year, provided they were not on medical leave. It is up to each employee to contribute, and no one is telling these young kids how important it is. Most don't have a clue.
That sounds exactly like my former employers plan, I'm pretty sure they pump in the max contribution to every ones plan of $1,500 whether they put anything in or not, because when I paused mine I was still getting the match every year.Right now in my company you are automatically enrolled in 401k, and the minimum contribution is 6%, enough to get the 3% match.
You have to make an effort to get out of it.
That sounds exactly like my former employers plan, I'm pretty sure they pump in the max contribution to every ones plan of $1,500 whether they put anything in or not, because when I paused mine I was still getting the match every year.
My former employer set up all employees with a 401K plan, the name changed from "TDRP" (tax deferred retirement plan), my plan, to "TDSP" (savings plan) for employees hired after 1998.
All employees receive the $1500 max contribution every year, provided they were not on medical leave. It is up to each employee to contribute further each year, and no one is telling these young kids how important it is. Most don't have a clue.
do they still get Cadillac pensions?....the PO switched to SS in i believe it was 1984....It is after you've retired and have been contributing for at least 20 years. The only exception are government employees and police and firefighters, who all still get Cadillac pensions, paid for by American taxpayers.
You will have more income on a 401K that has had at least 20 years to mature than you would on a private employer pension, with only a tiny few exceptions (maybe John Deere or UPS, for example)
My max contribution is a lot more than $1500, I would probably have to max out my percentage to hit that, or close to it.
I have $800k-$900k in my two accounts (have to combine them, I switched jobs recently) and I am just under 50.
The employees contribution, combined with the performance of the stock market, is what is designed to replace an employer pension.I agree, but my point is that because 401K's are voluntary, that means there are a lot, and I mean A LOT of people that are not participating and - per your example - $1500 a year (max) isn't going to replace a 30 year pension.
do they still get Cadillac pensions?....the PO switched to SS in i believe it was 1984....
The employees contribution, combined with the performance of the stock market, is what is designed to replace an employer pension.
I'd still be working if I relied on my employer pension, which was cut in half before I ever received it. My pension pays me $1,250 a month. Not enough to live on. My 401K means I don't ever have to count pennies, and instead find myself spending like never before, due to a 2-6% increase on an annual basis.
Of course they do, and Cadillac annual salaries, too. Just saw a small town nearby listed their highest annual salaries, 5 of the top 6, behind the chief, were police lieutenants making around $125,000 a year. No surprise this little town has sky high taxes.do they still get Cadillac pensions?....the PO switched to SS in i believe it was 1984....
Employer contribution only isn't going to replace the value of an equivalent pension. That's why employers went to 401K programs, because it shifts the cost burden from them to the employee and the "money managers" wanted a part of that retirement program pie.
WW
lol...they sure dont make that in the PO......Of course they do, and Cadillac annual salaries, too. Just saw a small town nearby listed their highest annual salaries, 5 of the top 6, behind the chief, were police lieutenants making around $125,000 a year. No surprise this little town has sky high taxes.
Money managers don't make money off pensions?
Who do you think runs them?
Under many of the old pension programs Retirement Programs were in-house and held by the company. The fox was managing the hen house if you will. If the company went under pensions went under. Which is why the Pension Benefit Guaranty Corporation was created to function like the FDIC to insure pensions.
WW
Money managers don't make money off pensions?
Who do you think runs them?
You don't know what you're talking about. A newly hired cop can make over $100,000 a year with overtime. It's reported in the news, ya know. They can retire in 20 years, full pension, that goes up every year. Only now is my city addressing the burden it puts on taxpayers. I've seen it firsthandlol...they sure dont make that in the PO......
And it pays pennies on the dollar usually.
With a 401k the money is all mine, despite what some people say.
This is actually the likely outcome, the only outlier are the Cadillac pensions, police chiefs and lieutenants, firefighters, high level government employees, etc.If you are a higher wage earner, contribute religiously, and start young it is often possible to have 401K assets that can generate income exceeding typical defined benefit pensions.
Of course they do, and Cadillac annual salaries, too. Just saw a small town nearby listed their highest annual salaries, 5 of the top 6, behind the chief, were police lieutenants making around $125,000 a year. No surprise this little town has sky high taxes.
