Leave a job that doesn't offer a pension?

gbdavidx

So my current company offers a pension after 5 years into the company

I currently make around 48k being a service desk analyst, my job is very easy to me, the hardest part about my job is getting 100% feedback from customers, (such as did i fix the job fast, was i nice, do i know the material ect), i average about 96-98% on the tickets that i close for the month

One of my goals is to get ccna next year, as i sit for the ccent in january (3rd week).

one of my questions for you guys is, would you leave a company that offers great benefits (pto, health benefits, sick/vacation leave, pension, small 403b (1.5% match since they have the pension), to a job where you can actually utilize your brain...?

If i do get my ccna, i am sure i could move up with the company but i would have to wait for a position to open up, however that could be 2 years from now, but im sure it would be there

shodown

that pension could be gone tomorrow, so its best to cert up and go for more money.

sratakhin

Pension? Are you going to work for the same company for 30+ years?

gbdavidx

REMOVED UNNECESSARY QUOTED REPLY FROM PREVIOUS POST

possible, if i like the network position, the company has great benefits

SteveLord

In my state government, your retirement is based on the last 3 years salary...INCLUDING overtime. So if possible (depending on field, financials, etc) many people will "spike" their last 3 years.

Add the unbeatable health insurance, and it's no wonder many work 20-30 years.

sratakhin

Steve, what state is it if it's not a secret?

SteveLord

Iowa. The Governor and Union about to go to battle again over everything real soon too.

ptilsen

They days of working for the same company for decades, up till retirement, are all but over. Pensions are less secure than mattresses these days.

In this field in particular, the long-term best result is most likely going to involve switching jobs every few years. If you stay there for "great" benefits longer than you should, the reality is you'll lose tens of thousands of dollars a year in raises doing it. After five years, you're easily talking about losing $100 - $200 in salary (including, often, matching 401(k)s providing more than a pension) to pay for maybe $50,000 in benefits.

These aren't absolutes, of course. If you're with a company that can over you steady raises (greater than 4%/year, on average) and career progression, along with good benefits, there's a reason to stay longer. I'm with a company that offers employee stock purchase with 15% match, 401(k) with contributions vested after two years, and tuition reimbursement vested after two years. All of those things are great, but if it meant turning down a $20,000 /year raise, it wouldn't be enough to stay past two years. However, the tuition reimbursement and career progression will likely keep me there for at least seven years.

The key is finding a company that can keep challenging you, rewarding you, and give you those good long-term benefits. Anything less should be a 2-4 year stop on your journey.

gbdavidx

i have up to 2000$ a year on tuition, its not great, but its there! the company does offer switching jobs every few years, so if i wanted to, i could go from service desk analyst to a network engineer position once i got my ccna, i would basically go from 50k a year to 70k a year and still keep the same benefits, although after that i would progressively try to go to a level 3 then 4 or whatever after that

also our raises are the 3% average and i dont think they budge on that

ptilsen

Well, the raises between job titles will be larger, as you've just demonstrated, which is what I mean when I talk about career progression. If you can move up titles to eventually break the magical six-figure mark, that's better than 4%/year raises. Even 4%/year is a lot for doing the same job for a long period of time.

If you have a clear, viable path to keep getting higher up and earning more, that's a good enough reason to stay. It's once you're stuck at inflationary raises and no promotion options that the benefits stop being a good enough raise to stay.

paul78

You mentioned that you work for a company but you also mentioned that you also get a 403b, so I assume that you are working for either an educational organization or a non-profit employer. The big difference between a "defined benefit plan" (I.e. pension) versus a "defined contribution plan" (i.e 403b or 401k) is how the plans are funded. Most pension plans in the US today is underfunded and while pension plans aren't exactly going bankrupt, I personally would always favour a "defined contribution plan" - largely because I can take my contributions if I leave an employer and I have control over it. The flip-side is that there is less risk with pensions (but I do not know if that's true these days) if you plan to stay with that employer your whole career.

Pensions aren't a bad thing. With certain types of organizations, public sector, successful non-profit education, it can lead to a comfortable lifestyle and retirement. But that goal may not be for everyone, if you have dreams of moving through a career where you risk a little more (maybe go to a startup or move between different large corporations), a pension isn't necessary an incentive to stay at an organization. It's really an individual decision and there is no right or wrong answer.

Good luck in your decision.