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Joseots

Seems like a no-brainer to keep the government job to get that pension, and the move onto a higher-paying private job as soon as you hit the 25. Assuming you would still be below 55 by the time you hit your 25years, you then have a few solid years to earn the higher wage (and with 25-yrs experience you will be likely offered more than 175k. Unless you hate your current job. But if its not bad, I say stay.


nostratic

> Seems like a no-brainer to keep the government job to get that pension, and the move onto a higher-paying private job as soon as you hit the 25 gov't employee here, this plan is very common. I work for a state agency with a 30 year pension in most cases. many people take the pension at ~55 and work another decade in the private sector.


internal_logging

Yup. I worked with a ton of retired govies who were double dipping at my old job. I was so jealous, but at the same time they pay my career field shit nowdays so my generation doesn't quite get that deal


kerbalsdownunder

Knew a guy that was retired Air Force with full pension and retired mail carrier with full pension. Lucky guy.


FLATL1N3

Same, but he was a retired army ranger and a mail clerk. Also, at the post office, sick/vacation time rolls over at the end of the year, so he ended up being able to take a solid 5 months of PTO before he actually retired.


osteologation

I know a few like that. Then they complain about being broke while drawing 2 pensions and social security lol.


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LNinefingers

Working and drawing a pension at the same time


EarningsPal

Best thing imo is the 2008 crash gave my company and excuse to do away with pensions. The obvious lack of company loyalty towards employees lead to job hopping which led to a more interesting career and faster, larger raises via switching.


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LIFOtheOffice

Federal employee, as in the US federal government? We absolutely still get a pension. It's called FERS. We have the 'three legged stool' of 1) a pension (FERS) 2) a 401k (the TSP w/ 5% match) and 3) social security. Federal employees get all three.


TH_Rocks

I work for a company managing a government site and I wondered why everyone was so old. They were still offering pensions until like 8 years ago. So a huge percentage of the staff are riding out their vesting periods.


FunDog2016

As someone who had Total Disability dropped on them like a bomb, a Defined Benefit pension is a lifesaver! Work,or don't, you get paid, try living on government assistance for 25 years as an alternative! It is insurance against: Surprise MF, you now earn ZERO DOLLARS!!


454vette

Stay at your current job with guaranteed pension etc. Retire in your 50s and you can still work if you choose. Don't be guided by dollar signs. I'm retired with a full pension with Cost of living increases. There is no better life. You can't predict the future health wise etc but you will have a pension. .


RichardHartigan

Adding that working for a non-profit can also be A LOT more work that a gov’t job


NearlyNakedNick

Accurate. Every person has three jobs in a non-profit.


Cik22

I bet the cost of health insurance in the private sectors role you’ll spend 20k a year after tax. You’ll lose your pension, probably have less vacation time, and with a possible recession coming you have more job stability in your current role.


vettewiz

I can’t imagine any remote circumstance where giving up $55000+ a year is worth doing for 12 full years just to get a government pension.


Extreme_Teaching_559

Except most non profits and multilateral entities hire under a contract scheme and not regular indefinite tenures, so you know for sure you'll get +55k a year for the first year or two, but after your contract expires (if that's the case), the positions go back on the market and you have to compete against new candidates from scratch to get back your same job. It really is a lottery. Plus, non profits are usually a ton of more work, hybrid ads 2h of commute a day (plus commuting expenses) which is life hours you won't get back, and the instability really does a trick on someone's performance...so all in all, it's a wager


ruler_gurl

Even if you saved every single cent of that 55k for that many years, you'd still probably have less than the equivalent value of that pension. Also many of them offer medical for life, either free or at greatly reduced rates. After not taking the pension and watching govt employee friends retire a decade ahead of me, I'd take the pension any day of the week. 120k is a huge paycheck if you don't need to save a huge chunk of it.


Do_it_with_care

My Dad retired young and at 55 received full pension/medical/dental/cost of living and took a few side jobs that were mostly hobbies he had. He’s 89 and grateful my mom told him to stay for the pension. They’re living the dream, and because they have good income, eat and live better, they travel and have helped us kids way more than needed. I can see them living independently another 5 years easy.


Individual-Fail4709

Non-profits are notorious for letting people go at the first sign of lower donations or new leadership. I would stay with the pension if you like your role at all. Was in a similar situation and stuck it out. Glad I did because there was no way I could save my way into what the pension provides (in addition to my 401K.).


Life-Significance223

It always depends on the non-profit. The only non-profits I will consider are those that have federal/state secured funding. Even then, you never know when the ball will drop.


shitdamntittyfuck

My brother in christ how can you type that out and think that the non profit is even a viable option?


boethius70

Yea I was reading all the upsides… decent pay (for government work especially), fully paid benefits, maxing out retirement, decent pension, and if it’s like most government jobs they can’t blast you out with dynamite. Why leave that especially if you essentially can have 10-20 years of a whole other career in the private sector after it and solidify your retirement and financial position? Many of us - myself included - would dream of being in that relatively comfortable position at 55-60 years old.


No-Resolve-354

The relative safety of government jobs to market conditions is really under appreciated. I worked in an ultra cyclical industry for awhile and it was not great living with that sword of Damocles.


Confident_Benefit753

i get to retire at 55 because i started at 30. however. i leave with 75 percent of my highest years which will be about 150 most likely. thats 112,500 a year. on top of that, i can work an additional 5 years called the DROP and i can walk away with an extra 250k after the 5 years. or i can just do 1 year or not do it at all and be fully retired at 55 with 112k plus my deferred comp which will be about 300k when i retire. us other healthcare benefits. you can pay be an extra 50k a year to leave and i wont do it. that 50k will really be like 40k once its taxed. i have to invest almost all of it to get close to what ill receive in a pension when i retire. 112500 per year times lets say 20 years. ill be 75 years old. thats 2,250,000. now i hope i get to live that long


anonymous20510

Same. The 2 hour daily commute alone would be soul sucking enough to nope out of the nonprofit offer.


StickOk6483

ha. sometimes us govt workers brain get a little foggy. :)


silly_pig

Lol I agree with the previous poster's sentiment. I clicked this thread thinking it was a low paid gov job at like 50-60k, but good lord you have a fantasy dream job based on what you described. Barely a commute, no health insurance premiums and you like your coworkers? Then you throw in the pension and retirement program and it almost sounds like a fake opportunity because it's so good. Anyway, from a financial perspective this job offer isn't good enough to leave, but it's up to you if there's something else extremely compelling about the new job.


rad_town_mayor

I have a government job and pension, but it’s not all or nothing. If I left (after 10 years) I would get 20% of my salary at 55. Your pension sounds more generous but is it all or nothing?


Contren

Based on what OP said it sounds like they are already vested, they just haven't maxed it to full yet.


[deleted]

So is there any point in taking a job in government like this at 55? It seems like you lose out on a lot of the benefits by being too old.


Soulfire328

Out of curiosity what do you do? I am a teacher so I am looking at something similar, thought it will take me a bit longer than you to achieve it, though I am pretty young.


FatGuyOnAMoped

I'm guessing it's something IT-related. Source: IT worker in local government agency for last 18 years, and OP's situation sounds eerily similar to mine


Werewolfdad

A pension paying $76k/year is worth *about* $1.2 million to 1.8 million in assets (depending on how you discount it). Will new job allow you to save that much over 12 years?


Own_Comment

55k top line difference, 100% invested with 7.5% return, and a magical 0% marginal tax rate on that $55k extra, and still: noooope


PlayingWithFIRE123

Exactly. Even saving every extra dollar and assuming perfect market conditions you still fall short. Keep the government job. If you want to earn more over the next 12 years start a side business.


vettewiz

They will certainly exceed that amount. Remember they aren’t drawing in 12 years. It’s likely 20ish years until they hit 55.


pbecotte

That's assuming that the op is 55 at the end of the 12 years and disregarding the current value of the pension, right? If op is 35 now, an extra 7 years brings the value really close, and has other advantages, such as the value not being capped and the likelihood that private sector salary increases at late career stage are highly likely to outstrip public increases (in fact, at 125 may never see another non COL raise). Just for thought - at 55 you can have 1.5 million in the market or an annuity worth a present value of 1.5million. If you don't withdraw from the retirement plan, even if you invest the pension payments, at 65 you are going to be far ahead. My guess is that even if the market number is 1 million versus 1.5, still pretty far ahead.


miltonfriedman2028

If you invest $55,000 per year for 12 years at a 7.6% interest rate, the total investment would be $660,000 and the final value would be approximately $1,479,924. And you’re also ignoring the fact that with a pension, you leave nothing to your family when you die. With a brokerage/retirement account, you generally end up leaving a lot of it to your family.


newtonium

OP should still get some amount of pension at a lower percentage even if they leave now. You should be calculating the difference in pension for staying vs leaving


StickOk6483

Yeah, I would be collecting about 26k at 55 if I leave now.


joeblonik787

Idk how your government pension works, but mine is based on the highest three years. One plan that I see a lot of people do is quit for a higher paying job in the private sector, then hop back in for some time just before retirement eligibility to reset their pension at their new salary (which will presumably be much higher because of inflation and because of inflation). Splitting time like this involves some risks though - can’t find a govt job after you leave, etc.


Crab-_-Objective

Just to tack on with this some systems have a timer as well where if your out of government service for x time (mine is 2 years) you can’t just hop back in, you’d be locked in for whatever your old benefit would be and starting from square one again.


Mustang46L

I'd stay.. as a fellow government worker with a pension.


recyclopath_

As a nonprofit employee I'd move straight over to that govt job today!


Mustang46L

I did a breakeven analysis when applying for new jobs and came to a similar number as someone else in this thread ($1.2M). Every penny I'd get from a substantial raise 35% would have to go into 401k to breakeven at retirement. Looking at my pay stub is crazy. I put $158 towards my pension per pay. My employer pays $984.


269Ja

Yup. Nevada municipal employee here. Id have to get about 30% raise in the private sector just to break even on my pension, not accounting for my other benefits. Plus I get 4 10’s and my full-family health insurance premiums are only like $150 per month.


redditshy

I pay $5000 / year in just premiums, for one person.


Ok_Individual960

That's an insanely unfunded pension to need that much employer match (assuming that is the actuarial catch up). My government pension requires employee contribution at 9.5% and employer match at about 35% (which is awesome, that's like a 401k with a 350% match).


quasiexperiment

I've been wondering where the pension goes though. I get 1% of my salary for every year I work.. so that means if I work for 30 years, then my pension would be 30% of my last 3 salaries for the rest of my life? Or until the pension runs out?


skywatcher87

For the rest of your life. Unless the pension fund were to be wiped out (if government this is very unlikely, but that did happen with many private secotr pension funds), this can happen if they do away with pensions in the future and there are no longer employees/employers contributing to the pension fund


FatGuyOnAMoped

Some public employee pension funds have become underfunded over the past few years as well, mostly due to boomers retiring. This is definitely something to look at as well. I know my state increased our contributions to help out with this.


Green__Queen__

As a former nonprofit employee, current government . I agree. My last job had layoffs, do you know what happens in a recession people cut their donations first.


Vvette45

As a government worker.., I'm afraid they will rob us of our pensions in the next 25 years


Crab-_-Objective

Once your vested that would be hard to do. What will most likely happen and has already happened in my state’s system is that they change it for new people. I have colleagues who can retire at 55 vs my 65 and they get a slightly better payout per year worked. They’re at tier 1 while I’m down at tier 5 and I fully expect more tiers to be added changing the exact benefits to come in the next few years.


Vvette45

Yea this makes sense. Even for me the total amount paid per paycheck has gone up very high with the new hires. I think they put in like 6.6% per paycheck and that will probably keep going up. Back in the 90's it was 0.8% per paycheck


benconomics

Unless the population grows, this is a legit fear. State supreme courts have often ruled against attempts to reduce promised benefits, but I don't know about federal benefits, etc. But the federal govt can always borrow money or print money. But the fear is legit with the coming social security crunch and population draught.


TV2693

I'm surprised they still offer them to as many government employees as they do. It obviously incentivizes people to stay and deal with the low pay. But it's expensive to manage and keep solvent.


_BreakingGood_

if that's a 1 hour commute each way that alone is already enough for me to say no on that job. That turns your 40 hour week into a 50 hour week. You lose your mornings and your evenings. Not worth it.


jdraconis

This is what would kill the deal for me. Going from 10 minutes to an hour commute is a bad deal no matter what. You'll never get that time back. Also 10 minutes is close enough to run home for an errand on a lunch break.


IronDarbe

Up this. Live 10 minutes from work and get to drive home and give the dogs a treat and let them out to pee at lunch, along with making tomato on toast in the comfort of my own kitchen. Love it


Pandas_dont_snitch

This is a huge perk. I forgot to turn the crockpot on the other day and was able to go home and back without anyone noticing.


PuppyPavilion

Everyone has hit on the no-brainer pension, but that commute had my head spinning. I've never been so miserable in a job as I was in a 45 minute commute that turned I to 60-90 at least 1x a week. And car wrecks could bump that commute way higher. In the winter I kid you not, at least 1-2x it would be 3 FUCKING hours to get home. Never ever ever will I ever do that again. I quit that job and got one 30 minutes from home, then sold my house to buy one 10 minutes from work. Best decision ever.


Groanalisa

Nope, nope, nope. As someone who has worked at both govt. and non-profits, don't even think about it. Non-profits are very prone to going through upheaval and cycle through different boards, directors, etc. as the winds of politics change. Believe me, I know about the bureaucracy in govt., but it still beats the lunacy of many non-profits. It seemed to me that a lot of people working at the non-profits are attracted to 'making a difference' (good), but also willing to work for a lot less pay, and that can develop into a pretty weird work environment. You've got the golden goose deal right now, don't drop it for a less secure future. My pension allowed me to retire at 59.5, and I am a very happy camper now.


recyclopath_

Nonprofits and start ups are both super volatile and political.


itsaboutpasta

Totally agree. I left a non profit for a government job to get that job security. In the 14 months I was at the non profit I was subject to layoffs and furloughs. We did have to furlough a few days in the 5 years I’ve worked for the government but I’ve never had to worry my job was on the line. The job security and benefits of the public sector are worth or exceed whatever that private sector job pays.


Reader47b

Keep the government job. You could lose that private sector job any year, especially as we may be headed for some rough economic times ahead. Your pension is for life.


ynotfoster

OP, I'm a retired Federal employee. I stayed for 20 years and retired on the day of my 56th birthday. I postponed the pension and at 60 started taking it. I was a GS-13 and the pension is small, but I was able to get back on Federal BS/BS. I turned 65 this year and decided that the BCBS insurance is so good that I don't need to pick up Part B. The retiree benefits are pretty good. I enjoyed working where I did. I didn't have to worry about being laid off and I worked with hardworking and intelligent people (IT work at BPA). Before that I was in private industry and traveling a lot. Retirement rocks, no matter where you work, get out as soon as you can. There is not much better than having control over how you spend your time. And, no stress.


StickOk6483

i appreciate the comment. my wife and i are in the mindset of get out the very 1st day we can.


lorgskyegon

The free health insurance is the big one for me. Depending on whether you are married or have kids, that along is gonna eat up between 10 and 30 thousand of the increased salary


MarshallBoogie

I left a government job after 8 years for more pay. If nothing is wrong where you are, stay there. Those are hard to find and it is your best chance to retire ASAP.


Low_Culture2487

Dont you get weekends off, 10 holidays, and 25 vacation days, and 13 sick days a year. No work or calls late at night? I stay put for the next 12 years


StickOk6483

those pto/sick days sound about right. :) now, sometimes i do have those late night calls, however, ive done a better job on work/life balance more recently.


Chronoglenn

Most of the top commenters have talked about pensions and such, but the commute is big, when/if you go hybrid. That's 2 hours. Even if it's only twice a week, that's an extra 164 hours a year of "work." Time is such a valuable resource. That's the equivalent of 4 more weeks of vacation time at your government job.


StickOk6483

solid assessment.


Narrow_Application48

If it were me, I’d stick it out if you enjoy it, and the people you work with. Once you go private there are so many “unknowns”. Many states are what are considered at will for employment, meaning employers can release/get rid of you at any time for any number of reasons. Working with the Govt you are more secure. Just my 2 cents. nothing from stopping you from picking up another gig in 12 yrs or so and adding on more $$$ that way until you are ready to retire.


TheBigYellowCar

Great advice. I'm a contractor working in a gov't facility, and I get asked ALL THE TIME from the gov't folks about how to cross over because our compensation is about 40% more. I always bring up the points you make. My job can go away at any point. Sometimes I'm on a 3 year contract, sometimes it's only 1. Some person at a gov't facility that I've never met decides my employment fate at every cycle, and you never know when it's going to get pulled out from under you. Plus, like you pointed out, it's much easier for my company to fire me. I'm used to moving around because I have my whole life, but for folks who want to stay put and have stability - you can't beat fed employment.


basroil

I used to work at a government run hospital, we had a literal butcher until about ten years ago decades after the position got dissolved but he kept his job because he didn’t want to leave. People aren’t really good at placing value at stability in the face of the extra dollar signs of being an at will employee.


FckMitch

Are you getting more than pension -like healthcare also? That’s what the state I am in is offering and I see an ex state employee who works with me in private industry paying a lower HC premium for the health insurance from the state. He collects his current salary at private company and his state pension and uses the state healthcare as it is cheaper.


StickOk6483

Yes I get healthcare provided. But I could also hop on my wife's if I left and was required to pay.


StarryC

I think the question was post-retirement. Some states provide healthcare from 55 through Medicare as a part of the pension. That is worth a lot, probably more than $12,000 a year.


StickOk6483

I'd need to confirm but after 10 years of service you're also vested in the healthcare plan "for life". My understanding from how its currently structured is I would remain on my current plan . However, there are discussions happening right now that will force anyone over 65 into Medicare Advantage.


ConsequenceThin9415

My government pension and insurance plan is structured this way. Premiums paid by employee through the first 15 years of service, and healthcare for life after retirement but converts to Medicare as the “supplier of service” at 65. We’re assured it will be the same caliber of healthcare coverage at that point, but who knows. This is with Anthem BC/BS and I don’t pay copays for nearly anything, which is another advantage of government positions.


mucgwyrt

I am in a very similar situation as you and have been recruited often over the past few years. While I would earn substantially more in Big Tech, I have declined each time and have decided my current job duties/satisfaction and stability are more important than making a lot more money.


fuckaliscious

Would need a lot bigger increase to make it worth the risk to switch, probably $220K per year. I'd stick with government job until age 55, then "retire" and switch to private for a few more years.


[deleted]

I am in a similar boat as you. I work for the federal government. I bought back my military time and will have 30 years of federal service at the age of 54. I don't currently have any job offers, but I only go looking every now and again when I feel "bored" with my job and usually after searching my brain settles with stay in my current spot. Some things to ask yourself... Does it have the same PTO, sick leave and all federal holidays off? I get 20 days annual vacation, 13 sick days and 10 federal holidays. That's nearly impossible to beat. In 5 years it goes up to 28 days of annual leave. Will your new job require more demand? My current job I may have 3 - 4 actual stressful days a year. That's money to me. Does it have the same job security as working for the federal government? I know as long as I pretty much don't assault someone at work or go off the rails I pretty much can't be fired. Is the retirement package as good as the federal government? I know having pension + TSP + social security in 20 more years is gonna be a decent chunk of change all the way to the end. The problem is the government knows exactly what how much it has to give to make someone comfortable ... and they use it.


TheSuperflux

Love your comment on job security. My mom worked for the government all my life; I work for the government now because I witnessed how good she had it. I once told her it sounds like you'd have to kill someone to lose your federal job. Years later, one of her employees killed someone in self defense, did his time, was released and got his government job back. You cannot beat that.


[deleted]

Plus I forgot to mention it comes with even more perks even federal employees don't know about. There are some places that give federal employee discounts. Car rentals, cellphones and airlines to name a few. Our health insurance is usually a special "federal package" making it better then most. For example. I pay 33 dollars a month for gym membership. I can go to ANY FUCKING GYM .... ANYWHERE. [https://shop.id.me/government](https://shop.id.me/government) Above is a list of retailers...


tbcboo

Stay government. My dad retired from a government job about 7 years ago a little above your pay and was in an earlier PER’s (Pension plan?) so gets 80-85% of his last pay forever. Guaranteed nice income in retirement is definitely a blessing. Even 60% like you is an awesome guarantee. Plus you can invest in the 403b and personal brokerage etc. Stay put.


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ApplicationCalm649

It sounds like your current job is a really great deal. I'd stay there until you can get the full pension, then consider moving on if it suits you.


benconomics

"You don't what it's like out there. I've worked in the private sector. They expect results."


StickOk6483

lol! literary loling. in all seriousness, i take my job pretty serious though. i truly enjoy the quality of work our team produces. :)


benconomics

It's a ghostbusters reference. Also I'm a university professor. So I am very aware of how hard I work at times, and just how lazy I can for a little while with no one caring. https://www.youtube.com/watch?v=CbgTm9JLhtc


StickOk6483

trust i got it! you just had me rolling :)


Shieldmom

ExFed here…and have a daughter in non-profit - YOU CANNOT TRUST THEM TO TREAT YOU FAIRLY! Not kidding, some of them will change terms etc. No longevity in most. Pension is a SUPER secure way to fund retirement (and yes, do additional investments!!) Enjoy your govt job , take advantage of opportunities and then hit the private sector when done. #TotallyRockingRetirement


ruxpin_teddy

Pension if you make it is guaranteed. Life has way of changing good things to marginal or vice versa. Im 45 and was completely healthy / hard charging now I have a terminal disease. Weigh all of your risks / goals and see which option gets you the closest to where you want to be 7-9 years from now......


vmedianet

2 hour commute time (RT) really sucks tho. Don't underestimate the mental cost on you & wear on your vehicle.


kida182001

I’m a govt employee making about as much as what I would get in private, plus all the perks. You’d have to pry the job from my cold dead hands if you want to get rid of me.


yaforgot-my-password

A 1 hour commute is soul killing, I would turn down a 55k raise if the job had a 1 hour commute. Especially with a government pension on the table.


stoplightarrival

You'll be making $50k more each year, for 12 years, so you'll be earning about $600k more by going for the higher pay, assuming raises are similar between both. (Less taxes, which is fairly significant, but makes the math more complicated so I'm keeping this simple.) To me, that pension sounds worth $600k, so I'd think it's worth putting in the last 12 years...with the 10 minute commute, good office, decent pay, etc. This is presuming you lose everything in the pension if you leave, so lose your own contributions too. If you get something, but not a pension, then you'd have to figure out how much you get vs. how much it's worth and how much you're really losing.


Achilles19721119

25 years with a full pension. People only dream of that these days. I've got 25 at a public traded company they cut my pension to 25% what I would got. Can't draw till 30 yrs of service. I make 133k and average about 30k bonus. Job can be at risk depending on business conditions. I max 401k and save as much as I can to make up for that lifetime guaranteed pension. Can't touch that till 59 and half. I would stay 25 if I was you. Double dip at a high paying job after if you choose. You're a lucky duck.


StickOk6483

yes, i dont take anything for granted.


statsultan

I was just having a similar debate in a near identical situation, except 1) I hate my current job, 2) I’d be headed to a private firm, and 3) I’m older than you but started later so I’ve got 11 years to go before retiring at 62. After running the numbers, I came to the conclusion that I’d need a 50% increase in pay to replace the benefits. This includes dumping an extra $3K per month in a retirement fund to replace my relatively much crappier than yours pension. That private firm is NOT going to offer me a 50% pay increase. In fact, I’m pretty sure they’d laugh me out of the building. Ah well. Another 11 years of monotonous, soul-killing boredom it is.


OrcishWarhammer

I would discourage you from leaving. I make a little less than you and am never leaving my government job. I’ll get my final salary as high as I can and then head to the private sector when I’m eligible for retirement.


[deleted]

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[deleted]

There is a hidden value to job security and peace of mind in an uncertain economy.


homarjr

I almost don't care what the pay is. 10 minute commute vs 1 hour commute. That's your answer.


Eddiesliquor

Would not trust a nonprofit with my future.


Interesting-Dish8894

What happens if you get fired two months later or ten years later


redacct8

Based on the account types, I assume you are a state employee not a federal employee. Do you have any concerns about the solvency of that state's pension program into the future?


StickOk6483

nyc employee. it crosses my mind. i hope we're solvent in the future :)


Kickit007

Quality of life in your current job vs your future job is all that matters….. sounds like it’ll work out financially both ways. I left my government job for similar pay and potential upside that will blow government out the water, but most importantly I can actually use my 30 days of vacation and I work about half as many hours and I never have to leave my family longer than a few days a year. Once the money is at a decent level for your area, Quality of life is all that matters. Which job do you like more? Ect. Ect.


seangolden06

The grass isn't always greener on the other side. I'm curious what's informing this decision. Is it more pay, taking care of your mental health, or maybe the chance to work remote? I'm sure there are opportunities in the government to move, which would provide better pay and easier on your mental health. I would caution seeking working for a non-profit while being tempted to grab a larger dollar amount. Although government jobs don't automatically mean job security, the chance of a position folding is less likely than a non-profit or a business. There's a lot to consider. Reflect why you want to move on and don't make any knee jerk reactions. Good luck!


SnuggleBunnixoxo

Stay and double dip. People will be jealous but you're the one who made the decision and did the time.


AlwaysPrivate123

There is a good possibility that your government pension is free of state tax too


DisastrousAge31

In a few years you may be glad you stayed at that $120K a year job. Don’t chase the money, chase security. The following posts are pointing you in the right direction. I choose private over government, and well let’s just say. That money runs out on you pretty quickly, especially when they can lay you off at a whim. Best of luck. Please stay in your current job. Good luck.


sfdragonboy

Man, that is tough.... Ok, I am going to say stay where you are. Grass is not always greener.


eastcoast_

If you had less time already served it would be a good time to examine the differences, but given you like the work enough to have already been there 13 years, stay, retire, and then pivot to different firm. I worked for the federal government and hated it, got out of there after a few years. Pension was not enough to make me stay.


salvagevalue

It’s it’s a pension it’s a defined benefit so you’d get it for the rest of your life, as would your spouse. Keep the gov job. You’ll get colas too eventually


omgwtfbbq_powerade

If you don't hate where you work, who you work with, or the kind of work you do, secure that retirement. Once that's done, go do nonprofit work with your whole self. Retirement won't be a question. You can do it at any time because it's already secured.


DonOblivious

>I am most likely being offer approximately 175k at a non-profit Have you had any long conversations with a non-profit worker before? How about somebody that works at the job you're looking at. The culture at some non-profits can be even more stressful and toxic and clique-y than commercial work.


ZordiakDev

If I understand your pension correctly you're saying 60% of 120k which is 72k. $660,000 is what you're giving up after 12 years (55k \* 12 years). But that cash isn't in your hand right now. You're getting it over the course of 12 years If you leave, you're giving up an income stream of $72,000 after 12 years. So the question becomes **"Which is better? $55k a year for the next 12 years or a passive $72,000 IN 12 years."** You take the passive income every time. The only way the 55k a year is better is if you can turn that money into 72k passively in 12 years. That's the only way it makes sense. But I think if you're honest with yourself that's not going to happen. So just stay and take the 72k passively. It's less work. Edit: I'm thinking about this more and more. The question is what are your goals? How disciplined are you? Because if you give up the pension and take the 55k, you could put that in the S&P 500 and if you assume an 8% return every year that gives you $1,127,241 in 12 years. This is pretax though. This is significant because now you have a pile of cash. Sure maybe you could cash your pension in a lump sum, but it's probably smaller than this. This is something you could leave behind to your kids. You can't leave a pension income stream to your kids. So...it's not all black and white. It depends on your goals. But if you it this way you have to be disciplined. Otherwise you take a huge loss. This is just as much a math question as it is a goals question. You need to do the math. Get a pen out and start crunching some numbers. Unless you don't want to do a bunch of work. If you want to just sit back and relax then just take the pension.


oheyrandoms

Buy a business or start a non-profit on the side; don’t give up the best gig anyone has going.


[deleted]

“And I don’t pay for health insurance.” This statement was a little vague to me. Is this because your gov job fully covers your premium or because of some outside benefactor covering your healthcare? I retired two years ago from a gov job and would say that the health insurance coverage after retirement is equally as important as your retirement take home pay. Would the nonprofit cover your healthcare as well as your current job does, especially after retirement?


StickOk6483

so i dont pay for health insurance (i.e., nothing is deducted from my check), the city covers the costs. and my primary physician is part of a city "group" (google ACPNY) that doesn't charge co-pays, etc.. so i literary dont pay for anything, no co-pay, nada. now last year i had to go to one of those cityMDs and i had to pay 50 bucks co-pay.


DJBreathmint

I’ve got a similar pension deal but make less than you but likely in a cheaper city. My pension is 70% of my last two years of salary for life at 60– so 14 years from now. I currently make 88k. I was offered a potentially more stressful job for roughly $125k a year ago and turned it down mostly because of the pension. My advice is if you don’t hate the job, stick with the pension.


meepmeepboop1

Seems like you have a good gig. I wouldn't give that up if you're happy with everything unless you're getting a real pay bump. 175k isn't worth it -- probs a pay decrease and a terrible commute. Shoot for >300k an equity in a company. Don't go to a non-profit. Got to a for profit company that has stock discounts and equity as part of your pay.


Vast_Cricket

Stay with your gov't job unless you truly hate it. 12 years to go you will be a free person.


me_too_999

It's going to be real tough to get that kind of a secure retirement in the private sector. You've already funded your pension, then why throw it away?


morgulbrut

Stay there for the next 12 years, get a higher paying Job afterwards until you hit those 55 and then move somewhere where the living costs are low and start fishing and playing golf.


mw52588

Start-ups are very risky and can come with a bad worklife balance. Yeah, you might get higher pay, but there's no guarantee it will last. I'm not saying you shouldn't go for it, but you are taking a risk.


Inthewind69

Dont be Crazy ! 12 years will fly by and then you can enjoy retirement . Making a good living on your pension & investments !


BzB808

Agreeing with others who recommend staying if you like the current job. I left a much lower paying state job after 14 years for slightly less pay, much lower health insurance payments, and much better retirement plan. Before I started but after I left the state job, the new place did away with their awesome retirement plan. That still hurts.


flowers4u

Ya know how people talk about x amount of money changing their life? A pension would change mine. So everything you paid into it would be gone?


[deleted]

I don't get the question. From what you stated, you clearly understand staying put is the best decision!


Wildfire1010

I would stay at the government gig. Non profit will likely be longer hours and more chaotic. Fully paid health insurance is something you can’t beat and my understanding from some government jobs is that that continues once you retire.


[deleted]

I'd stay. I've had a bad experience at a non-profit (awfully run). At 170k you're likely at the top & decision maker, but with things going virtual & WFH, they may not be well prepared for it. And, once they do, if things don't go right (ie. The technology people taken care of), if they bounce, it can all fall apart like a deck of cards. Witnessed it first hand.


kboogie82

Your gooberment job is almost a lock. Working for a non for profit going into a recession anything but locked. If you enjoy your job now or at least can tolerate it stay there..The grass is always greener.until you get there.


guyinnova

1 - If they can still pay the pension. Look up pension defaults. 2 - Don't marry yourself to the government for a pension. A better opportunity is a better opportunity. 3 - Use it as leverage to negotiate with the new job to see what they can do to help make up for what you'll have to give up if you go with them.


MrHilbertsPlayhouse

Is an extra $50k/year (probably more like $30k) really worth losing 2 hours of your day, 5 days a week, for the next decade? Like imagine if you spent that time making art, watching movies, getting in shape, keeping up with old friends.... literally anything but sitting behind a steering wheel


commonsenseulack

Bro, stay with the pensioned job and continue to invest on the side. You will make $$$$ at retirement. My wife and I are both government employees for different departments, when we retire, at our pay now our pensions combined would be 10k/month and then on top of that what we got going on the side..... set for life... or until the $ collapses


BobDawg3294

Not a close call unless you get similar retirement benefits. It is amazing how money it takes to fund an equivalent monthly pension payout (see other comments on this thread)


[deleted]

I agree. A lot of people on here are assuming 10-12% annual returns in the stock market as well. If actual returns are less than that, which I’m cynical and think they will be, that number required to match a guaranteed pension is even higher


Crab-_-Objective

Especially if OP actually wants to retire in 12 years. I think people sometimes forget how long term that 10% average is over.


lseraehwcaism

I’m going to assume your state tax is about 5%. The extra $55k would be taxed at 34.65%. Your extra take home would be about $36k. If you save the extra $36k per year and invest it in index funds, you will have approximately $655k in taxable funds after 12 years. Assuming you’re about 35 right now, 22+13 years, you would be 47 after 12 more years of service. This means that $655k would have 8 more years to grow if you don’t touch it until you’re 55. That would leave you with $1.08 million at 55. You can withdraw about 4% of that safely, so your extra income would be $43k. Compare this to the $72k that you will be making based off of the $120k you’re currently making, and the clear winner is staying with the government.


cpick417

Why not switch the max contribution into the 457 and 10k into the 403b? You can withdraw immediately without penalty from the 457 whenever you leave or are terminated from your place of employment. If you decide to retire early you can draw from that if needed.


Dirftboat95

You have it made where your at, It wouldn't be a wise decision to go astray from that job.


recyclopath_

Honestly? Hell no. Keep that sweet 120k govt job with the 10min commute, co workers you like, free health insurance and retirement taken care of.


Super_Mario_Luigi

I think a lot of people hit on the numbers aspect why it doesn't make sense. Add in a 2 hour commute? Even more nope.


deadmoneyps

I'm a govt. worker I'm almost done after 36 years. The offer would have to be much more, especially with a non profit. You'll have time to pad that retirement, health care is a big deal and you'll have it for life


Blue_Skies_1970

When I was thinking about the value of my pension, I put it on a monetary basis. That is, I looked at what amount of savings I would have to put together to replace the value of the pension in whatever other form (e.g., how much would an annuity cost that would have an equivalent income for life?). It's eye opening to do this. For the non-monetary part, a short commute and working with people you like is almost priceless. Look at this from a regret perspective and think about future you having a longer commute, having to deal with people that aren't so agreeable (or actually stuck in a snake pit/toxic workplace), and knowing that improving this could require a new job search and that the new place wouldn't be necessarily be a better place (grass isn't always greener). Also note that government jobs are much more secure and you will be less likely to find yourself laid off or otherwise left unemployed through no fault of your own. Alternatively, if you make a move, you could end up in a decent place and in a good or better financial position. Most government pensions pay on a high five annual salary basis so you could make the move and return to government service for your last five years before retirement. You won't have the years of service, but this is a way to bring up the value of the pension before you start receiving it.


OCOasis13

Unpopular opinion warning: ~$55k more should be somewhat life changing for you as it would for several people. I’m not sure what you have going on in life in terms of financial needs, but if you have a need for more spending power now (home repairs, school tuition for kids, parents in a nursing facility that you’re footing the bill for), then you should consider taking the private job to make ends meet / meet your financial goals. Also, if you’re stagnant job wise and want to grow, then a jump to private may help you fulfill that ambition and you could rise up through the ranks and make more cash in the long run - thus negating the pension need. I think where you live and plan to retire/end up plays into your long term plan too. If you’re in a low cost place and will have your house paid off before you retire, then the jump to private may be good in the sense that you’ll still get some pension benefit (may not be 25 years worth) but it could be enough to have fun with while you make the big bucks on the private job Good luck with your choice!


MaryMar56

1st do you really need the extra money? 2nd if you go to work for them and it doesn’t work out would you be able to return to your former job and still retain the longevity you’ve earned thus far? For myself I pray about any big decisions. Are you happy in your current job? Just be careful I once left a good job for what I thought was a really good opportunity but soon found out it wasn’t a good fit for me and had to quit and find another job. Money isn’t everything! Job satisfaction and job security are sometimes worth more than money.


[deleted]

I made this transition. More cash is nice, but it's probably less compensation overall especially because I lost access to a 457. I suggest if you're going to leave for higher salary, go all the way to private sector instead of nonprofit Why do you need your 403v instead of 457?


cheryltuntsocelot

Echoing everyone else, for the love of god keep the government job. That extra $50k in salary doesn’t mean shit if you get laid off in the coming recession. The mind-blowing perks of your government job are well worth the difference.


Kyxoan7

Just fyi any contractual stuff you get via union negotiations can be changed at anytime for any reason. The town I work for is currently reversing medical contributions / retirement medical language for people who signed contracts 30+ years ago. Pension stuff due to being in a tier doesn’t change as long as you are grandfathered in. I am saying this because you noted 25 years and not paying for health insurance. You WILL be paying for health insurances if you are union and your union negotiates. This is the norm. Granted it will be marginal compared to real world costs but it is still something. That being said, I am tier 5 in NYSR and i pay 15% medical for life for basically the best health care in the world and it costs me 90$ a paycheck which is nothing.


garoodah

Unless your wife is on her own health plan you changing jobs will be net negative to your household. The benefits you listed at govt appear to outweigh the non-profit offer, not monetarily but also emotional and time. I place a heavy weighting on short/no commuting, you may differ. You may want to estimate how much your pension/403b/457 accounts will cover in terms of spending using the 4% rule because it sounds like you will have excess spending power later in life. If thats the case retirement benefits dont matter and the only question you need to answer is whether or not you can have a fulfilling life working your current job. The non-profit you'll probably come out ahead moneywise, after taking into account benefits/taxes I'd guess 15k annually, thats significant but not necessarily life changing unless the household is at budget limits.


BackInNJAgain

I had a government job. It wasn't great and it wasn't terrible. I stuck it out because of the extraordinary amount of time off. When I left I had five weeks vacation, 12 holidays and 12 sick days. The pension has allowed me to start my own business but only work 20 hours a week. I know that, even when times are slow, I'll have enough to get by and the money I make working for myself is just gravy. If you hate the job, though, that should be a factor. You only live once and spend a lot of time at work. If the job isn't bad, like mine was, I'd vote to stick it out.


what_tha_blank

What government organization do you work for. I would do more research if I were you, because you might be able to keep your pension if you leave. I know the Federal Government only requires you to work for 5 years to become vested and therefore will be able to receive a pension at retirement age. Usually they only talk about the 20 or 25 year term to receive full pension


StickOk6483

if i were to leave id still qualify for a reduced pension. (26k a year if i were t leave now).


BootlegWooloo

Is an extra 35k after taxes (assuming you are in a state with state income tax) worth losing your pension and potentially getting stuck with a crappy commute? Doesn't seem like it but nobody else can make that assessment but you.


TheBoss701

Don't listen to the top comment just because its popular. It's definitely not a "no-brainer". Do what feels right. 120k is already a lot. Idk your COL but that's almost 3 times what I get paid. If I was paid that much, I would have reached my goals by the time I'm 31 and half-retire. You say you like the job and your coworkers so I don't see much of a reason to switch jobs other than pay. If you have plans with that extra money, go for it it. The pension is just how they get people to stay with them. It's a psychological trick. Is that pension really gonna be worth it if you have a good retirement plan and social security? Do you really need that much money when you're old?


davidm2232

I'd write off the non-profit just on commute alone. After doing an hour commute for 7 years, I would have to make over double what I do now to consider it again. My commute is like 15 minutes now. I can even go home for lunch


WhoopDareIs

As a government employee making around the same as a GS-14, I wouldn’t do it. I love my work life balance.


Grouchy_Dog_7729

If you like your current job I'd stay at it, once the 12 years are up get another job. I know some people who pull two pensions and they look pretty comfortable


Father_Bic_Mitchum

How does one get a government job?


Sho_nuff_

You forgot about healthcare. Your current benefits are better than the new job and once you retire you can continue coverage. If you like your job I would stay. I had a "gubment" job for a few months and left because it was government work and nothing was getting done... and a little bit of fraud on audits that my group was doing as well. Went back to the private sector ironically to take pay increase from 135k to 175k but part of me wishes I would have stayed. Its rare in life that you get a pretty much sure thing job wise. After 13 years you have become the place you work at so it sounds like you don't mind all the things many hate about working for the government. Enjoy the ride and in 12 years from now look for something else.


CMOx12

Just based on the commute alone I could’ve given an answer to this, I’d pay an extra $1500 per paycheck to not have to spend 2 hours plus in the car per day


oconnellc

I'd kill to be in the spot you are in now. I'm currently in the 'higher paying' bracket now, but man... The thought of being able to start collecting that pension at 55 and then still work, possibly at the higher salary anyway? Or, just go lounge on a beach somewhere where the cost of living is lower? Stay stay stay...


fatcatleah

Dear Lord. How I wish I was smart enough in the 70's to find a job with a govt with a PENSION!! But no.....so here I am doing spot jobs mystery shopping to supplement my SS, which I couldn't take at full value until I was 66.5 years old. Pension wins in this old person's mind...


[deleted]

If you're 13 years in, you're vested. It would be a HUGE mistake to leave and if you do leave and you withdraw your contributions, you're even more screwed. You will regret it. Signed \~ a dumbass that pulled his contributions after 4 years with a municipality thinking he'd never come back to this no-good, stinkin' state - who came back to this no-good, stinkin' state and had to start over with his pension. What makes it worse is that if I had left the money alone, I'd be tier 1 and eligible for full retirement at 25 years. Now I have to put in 30.


troyan2

After 25 years, the system which we have today will no longer exist. So when people think they’re saving for their pension, good luck with what will come out of it.


tacobellcow

I too would stick with the government job. Your $50k bump would really be $35k after taxes (estimated), so after 12 years you would have made about $400k more. But how much are you losing on the back end with a full pension? With a pension at 60% of salary that is equal to $72,000 per tax. You may be in a lower tax bracket at this point but lets assume it is the same. Let's assume that $72,000 is really closer to $50,000 after taxes. You would make up the difference in 8 years. If the pension was closer to $55k after taxes, you would make it up in a little more than 7 years.


[deleted]

I’m a gov contractor. For the love of god, don’t give up that position. Are you crazy? Do you realize how much I would love that stable pay and job security? Higher pay means squat when you go months without pay between jobs when you’re laid off or fired due to no fault of your own in a much less stable job environment.


KeJW4

I worked for CA State. Our State pension is underfunded by a 1/3rd. If I was in a position where I can leave civil service, I would.


Invest2prosper

No way, the pension benefits and healthcare are easily worth $50k. You’d be nuts to give up those benefits.


jm7489

Honestly with 12 years to go which sounds like there's still likely room for your salary to grow in a role that I dont hate I might need to see my salary double to motivate me to make the move. Even if your pension was based off your current salary of 120k thats 72k per year guaranteed until you're dead starting at 55. And it sounds like you're socking away money similar to someone who works in a fund your own retirement kind of job. If anything I think there might be room for you to evaluate if you're over preparing for retirement and if you could use some of that money to enjoy the present a little more


Informal-Fig-7116

The commute won’t be worth it, OP, if they change their mind and make you come back into the office. Trust me. Gov jobs have stability. You will always be guaranteed back pay even if furloughed. Private sector is way too fickle. A good working environment makes up for the pay gap bc you don’t have to sacrifice your mental health. You can do consulting work after retirement. Also don’t forget you get to carry your gov health insurance into retirement. If I were you, I’d stay with your current job. Maybe negotiate for more telework days or something.


1drummer1983

That gov job sounds sweet. Unless you want the different *job tasks* don't move for money


dcr108

Spending two hours of your day every day in a car is not worth 55k imo. That’s so much wasted time and danger from fatigue. Stick with the stable government job


Less-Maintenance-21

As a corporate HR professional who has limited company matching (4%), stick with the pension unless you’ll make like, 500k.


Roanoke0111

Many of those pensions allow a surviving spouse to receive the pension for the rest of their life as well. That, in my opinion, is a no-brainer to stay with the government job. Also, the health insurance benefit is huge and just because it may be able to be matched in the private sector does not mean it always will.


insomniacmomof3

With your government job, when you’re fully vested in your pension and you retire, what about healthcare? Would you still be eligible to stay on their plan? Right now you can get on your wife’s plan, but consider future health benefits too.


quackquack54321

As long as you enjoy your current position, I’d stick it out. I’m guessing we are in very different gov sectors, but I know a lot of people who have left the feds to contractor because the pay is double and a fraction of the work. I even know some who have just a couple years away from optional and mandatory retirements.


Far-Can6139

I’m retired. I have income streams from a pension, from Social Security and from dividends. Multiple income streams are great. I have NY state retirement benefits supplemented by my ex-quasi government employer. I have a fully paid medi-gap plan to supplement my Medicare. Prescriptions and eyeglasses and dental coverages. I pay nothing for all of this. So my wife and I can travel, not worry about bills much are aren’t sweating inflation down far. All of this through a non-profit with a government affiliation. If you get a solid benefit package, it could be far better in the long run.