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<blockquote data-quote="Oldfart" data-source="post: 2899860" data-attributes="member: 64407">I see 2 things in your argument to comment on.&nbsp;&nbsp; 1st.&nbsp;&nbsp; Not a whole lot of pensions pay 40,000 per year to be worth the 1,000,000 401k.&nbsp; &nbsp;&nbsp; Certainly not the employee that make roughly 30k per year.&nbsp;&nbsp; IF he got a pension on that salary, it might be 15 to 18k per year.2nd.&nbsp; &nbsp;&nbsp; If a man retired with 500k in an 401k and withdrew 4% a year,&nbsp; baring a collapse in the market, that money will last him 30 years and he will leave a good bit to his children.&nbsp;&nbsp; You failed to figure the return that 401k will get WHILE he is drawing it.&nbsp;&nbsp; If he only pulls out 4%, even a conservative return should be 4% or more.&nbsp;&nbsp; He is only pulling out his return and most of the balance is there the entire time.Many 401k have seen returns of 12 to 15%, except for 2008.&nbsp;&nbsp; Your pension will never see that rate of increase and will not lower your yearly tax bill.Sure a pension is great, but my pension pays about 50% of our yearly salary of 10 years ago.&nbsp;&nbsp; That isn&#039;t gonna allow me to enjoy my retirement like I want.&nbsp;&nbsp; My 401k added to my pension will allow me to lose very little of my working income and will allow me to live like I want to in retirement.</blockquote>

[QUOTE="Oldfart, post: 2899860, member: 64407"] I see 2 things in your argument to comment on. 1st. Not a whole lot of pensions pay 40,000 per year to be worth the 1,000,000 401k. Certainly not the employee that make roughly 30k per year. IF he got a pension on that salary, it might be 15 to 18k per year. 2nd. If a man retired with 500k in an 401k and withdrew 4% a year, baring a collapse in the market, that money will last him 30 years and he will leave a good bit to his children. You failed to figure the return that 401k will get WHILE he is drawing it. If he only pulls out 4%, even a conservative return should be 4% or more. He is only pulling out his return and most of the balance is there the entire time. Many 401k have seen returns of 12 to 15%, except for 2008. Your pension will never see that rate of increase and will not lower your yearly tax bill. Sure a pension is great, but my pension pays about 50% of our yearly salary of 10 years ago. That isn't gonna allow me to enjoy my retirement like I want. My 401k added to my pension will allow me to lose very little of my working income and will allow me to live like I want to in retirement. [/QUOTE]

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