Pension and retirement account

If your job offers you a pension do you keep a separate retirement account? I have a retirement account from my previous job with not much in it... maybe 25ish K. My new job offers a pension. Do you still fund a separate retirement account if you have a pension? My husband also has a pension and a retirement account from his previous job and a separate 401K from his current job where he has a pension and puts like 3% of his salary into it. I don’t think all these retirement accounts are necessary? Any better way to stream line it? Like opening an account in both our names? Or just have the pension? I feel like I have money all over the place

Message edited 9/28/2018 9:38:18 AM.

Re: Pension and retirement account

DH has a pension and also a small 401K account that the company did not match.
The 401K was offered later in his career and he didn't contribute that much to it because he had the pension.
He is retired now, so he draws his pension and also collects SS disability. He has not touched his 401K yet.

I only have 401K thru my job. so I have funded that very well for a long time. My company also offers matching, so I take advantage of getting that free money and making it work for me.
If something were to happen to DH, I will receive his pension for the rest of my life.
So, looking at my retirement, I will have income from 3 sources.

I wish I had a crystal ball that will tell me what my expenses will be in retirement, if I will have to dip into savings to pay for medical care, for home health aides, for assisted living if that is the route I/we need to take. Medicare does not cover dental or vision care, supplemental policies do but of course you have to pay the premiums for that.
My goal in retirement planning was to make sure that I was taking care of myself and would be comfortable and not struggling financially.

DH and I were both older when we met and married, so then it became my job to make sure that both of us would be fine in retirement.

Having the 401k is a tax benefit, as it is funded with pre-tax dollars.
Once I begin withdrawing, I should be in a lower tax bracket and not have to pay as much in taxes on the withdrawal.
I don't think that you can combine your retirement account with DH's. DH can combine his, roll over the old company into the new company.

You also have to look at the details of the pension - do you contribute to it or does your employer or do both of you. Do you have to work a certain number of years to become eligible for it, is there a minimum age when you can begin drawing on it ?
DH's was 30 / 57, meaning 30 years of employment or age 57, whichever came first. In his case though, he became disabled, was awarded SS disability and therefore became eligible to draw on his pension.

Re: Pension and retirement account

DH has a pension.
He also contributed to a separate retirement account- deferred comp -like a 401K but for city workers. I forget what they call it.

He put in a set amount each check and it was invested and grew- much like a 401k in private industry.

His pension is great but over time it will devalue as the cost of living rises. So it's important to have that as well.
When he is a certain age- 60 something- he can draw into the deferred comp.

Right now since he is retired he is no longer contributing to the deferred comp, but the money continues to grow due to the investments.
It has gone up over 100 K since he retired 7 years ago.

As I said- a pension is a set amount- it does not go up and adjust to the cost of living.
If you retire and start collecting your pension when you are 65, and you live to be 85, that's 20 years of inflation and the cost of living rising- your pension won't be worth as much 20 years later, kwim?

Message edited 9/28/2018 10:46:18 AM.

Pension and retirement account

My husband like Nells has a pension but also contributes to his 457.

I had a pension at my last job but it was small - only 1x salary so I contributed to be 401k as well.

Re: Pension and retirement account

I have a pension and do also contribute to a 401k. I dont think you can be too prepared for the future/retirement.

Pension and retirement account

pension and 401k here.
i contribute to my 401k... i'm actually planning to increase my contribution as of january because my raise kicks in. i'm going up another 2%.

Pension and retirement account

I have a pension and a fully funded 403B and Roth IRA. You never know what you will need once you are retired. Plus my DH is really into saving.

Re: Pension and retirement account

My husband had a pension and a 457

Re: Pension and retirement account

My DH has a pension and does 12% to his 401k that is matched up to 4%.

Does your company match for your 401k? I feel like if they do, and you don’t utilize it, you’re just throwing free money away.

Re: Pension and retirement account

Re: Pension and retirement account