I have a pension with the state that I work for. 6.25% of my gross pay gets automatically deducted for this pension. Once I hit 5 years I'm guaranteed a pension (very small one). At 25 years I get healthcare + a percentage of my pay that I'm not sure of and at 35 years I get healthcare + 85% of my pay. While it would be nice to make full retirement, I can't guarantee it, so I am preparing with a separate account. Currently I am only contributing 2.5% to this 403b (like a 401k).
I have researched and seen a good number to start with retirement contributions is 15% if you're still in your 20's. Can I count what I'm contributing to my pension as part of that 15%? or should I aim for 15% to 403b + the 6.25% pension?
Pension + 403b?
October 6th, 2009 at 07:47 pm
October 6th, 2009 at 08:36 pm 1254857807
October 6th, 2009 at 10:26 pm 1254864385
October 7th, 2009 at 04:37 am 1254886634
Another reasonable way to approach it is to count the pension as part of the 15%, and plan to match it, or "Replace it," with time.
All that being said, if it is deducted from your paycheck, is it really a pension? I don't understand government pensions, I guess. When I think pension, I think funded by employer and 100% under their control. Which spells trouble in the long run. Though government pensions tend to be more safe, but I am overly cautious.
October 7th, 2009 at 03:55 pm 1254927320