Monday, September 12, 2011

Pension Thoughts

I received confirmation of my part time status at work which will mean a refund cheque will be coming for the difference in my registration fees.

It will make a difference of around $550/yr just for reducing my work hours by one more hour. Had I been more diligent with finding out about this, I could have instated this change back in July. Oh well, it is done now.

We have also decided to use D's (hopefully) annual bonus towards our new consolidated mortgage until the principle amount of what the car represents is paid off. We are not sure how much that will be until Nov of each year.

We are also suppose to receive D's first pension statement then too. I'm extra excited about that. This may sound silly but I have strange fascination for defined benefit pension plans.

Partly because I know a number of people who work for the federal government and my Dad works for the municipal government so I grew up having access to great benefits.

It has also not escaped my eyes the differences I see between retired friends who have such a great pension and those who do not.

In my experience, the ones who have the great pensions ($75K/yr and up) don't appear to be as money savvy as the ones who don't. It could be they don't like sorting out money stuff or it could be they knew they didn't have to know because they were going to be provided for.

The younger people we know who have such pensions tend to be more cautious. They are questioning whether current and future government cut backs will change their pensions. They are going to save on the side just in case.

Until D and I got together, I had no benefits of any sort so I am able to appreciate just how much that can matter. I see it as a form of income. As for the pension part, I see it as getting paid twice for doing one job.

Doesn't really make sense from a business point of view but I'd love to have one. Especially when you do the calculations on how much you'd have to save in order to make your own never ending pension.

When I mention this to my older retired friends, you can tell they haven't considered this nor have done the calculations and realized just what that would have meant to their lifestyles had they needed to put away a significant part of their income along the way.

I can just imagine what I would be able to do in the living my dreams department if I could spend nearly all I made, knowing I'll be "paid" a great amount starting at age 55 or 60 or 65.

Unless I am willing to change careers (assuming I would even get hired) and work for even longer, I am satisfied with living vicariously through D.

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