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Zeugitae t1_j0bb848 wrote

Reply to comment by Babhadfad12 in Vacancies imperil city services, comptroller’s report concludes: Suggests hybrid option would help stem personnel exodus by arrogant_ambassador

Yeah the advice is pretty much: "get the pension but also open up another retirement account" not that the city will match those of course 🙄

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Babhadfad12 t1_j0bbpfr wrote

I have always seen the options as:

City/state government job: low pay, low volatility, but if you show up you get rewarded with an annuity when you are older. Previously, this annuity was worth a lot, and it started a lot earlier. Now, the annuity will not buy you anywhere near as much, and you will have to work longer. And the city might cut the benefit if it gets into financial trouble over the next 60+ years, like Detroit.

Non government job: higher pay, higher volatility. As long as you stay valuable and are open to moving, earning potential is higher. Can invest in equity index funds, so your retirement is effectively guaranteed by US federal government reliably bailing out stock market, but you also get full control over your funds and the huge advantage to you is you can tell your employer to fuck off without losing any potential retirement benefits.

For example, when the world changes to offer remote work, and your city employer asks you to waste time commuting, you have to decide if it’s worth giving up potential retirement benefits. But if you have a 401k, you can move on to better employers.

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