Bob

http://www.sky.com/skynews/article/0...234196,00.html

Been reading that, and, not really knowing about what will happen in the future, I was wondering what anyone thought about pensions, is it worth doing the NI contributions? What about pensions benefits from work? Any advice for things that might be worthwhile regards to work benefits and what's the deal with the 401K stuff?

Other than medical, I haven't really given other benefits much thought, but am looking into the whole thing, but if anyone has any advice or info, whatever, be glad to hear of it

scrubbedexpat099

I have not but have it in mind to keep track, I have 30 years of contributions, if only a few I probably would ignore it.

What will you get? A lot less than you hope for, maybe less than you expect and a lot less than the Politicians promise, they will not be around to worry about it.

US 401K pensions are 'akin' to Money Purchase plans in the UK, there are a few final salary schemes but they seem very rare.

A good idea if the employer matches contributions, otherwise it all depends on your circumstances and views.

Bob

Does seem to be the trend to not bother with the NI unless you've already been contributing for a while, and just better getting a private scheme of some sort.
As for the 401K, well gonna look that up later this morning, but how do they work if you know the gist? And I've seen a few places offer to match contributions, so you think that is a definate plus when looking for a benefit?

scrubbedexpat099

Well my wife has them, now a Financial Planner will probably have a fit with my descriptions but in round terms:

You have a tax fee deduction from your pay packet

That goes into a fund adminstered by a financial instutution

Usually you have choices as to which institution you use

Sometimes the employer will match, usually up to a certain percentage of your salary

The employer may make it conditional on buying their stock, better for you to have full freedom.

If you need to before retirement you can pull money out but take a tax hit

You can also borrow against the fund you have built up

There seems no ompunction as there is in the UK to buy an annuity with the proceeds.

All other things being equal, I would always do the amount they match, after all not many other investments where you stake gets doubled immediately

Check with HR, I would expect they have a web site that gives all their options.

Bob

Cheers for the gist
Well I haven't got a job yet, just trying to see what benefits are really worth looking at if for instance one offered more benefits but had a pay hit...
To be honest, never really thought about the benefits back at blighty other than holiday pay to be honest, so it's a whole new game isn't it.

scrubbedexpat099

Well Healtcare is the biggie, well I guess you know that, pretty difficult to have any conversation with a USC without that coming up.

Otherwise divide holoday entitlement by 2 and assume no employment protection and you are there!

Having a chat on Sunday and somebody mentioned that Colorado is a 'Fire at will' state, nothing to do with Guns apparently, if they do not like you or want you, bye bye - no qusations, no come back.

syllk

I've never been a big fan of the 401k myself for the following reasons:

Can't draw any money from it until you're 59.5 years of age without taking a penalty hit (10% I believe), plus any taxation.

People mention the words 'tax free'...it's not, it's tax deferred, you pay tax when you withdraw the money.

As Boiler mentioned, matching contributions may be via company stock, which is all very well, but what if the company goes tits up or performs poorly? Bang goes that contribution.


Speak to a financial advisor as to what's best for you, some people leave it waaaay to late before thinking of retirement. I've still got some 30-odd years to go, and I still wish I had been investing more aggressively earlier in my life.

Bob

That's a bit harsh....very hard to get fired in Maine, but then again, contracts suck, so they can force you out quite easily if they wanted to...

And yeah, health benefits is a given, health and dental, eyeballs would be nice too, but don't see that many places that offer that...

Bob

Aye, I know, I'm still in my 20's, but it's something to think about, better now than later...
and that was the one thing that Rebellion was good at, they contributed whatever else you put into a private pension scheme above the 3% salary...tho most people didn't take them up on it as the salary was crap *l*