hd, I want you to take what I am about to write in the manner that I intend, which is to educate our younger members. In no way I am trying to disrespect you. Anyone who is able to work here for 30 years deserves all of our respect. Dave.
The above post by hd is exactly why it is so essential to properly plan for retirement, both financially and mentally. Mental preparation involves having a plan of what to do with all of your free time. My daughter asked me the other day what I am going to do when I retire as she knows how bored I can be if I don't have a plan. It is hard to go from a structured lifestyle dominated by work to one with no time clock. It is essential to have a life outside of work so that when the day comes you will be able to smoothly transition in to the next part of your life. Financial planning is much more than making sure the union has your direct deposit information for your pension. Depending on your union local, your pension may vary from as low as $2K per month to as high as $5K or more. The pension should not be the sole source of your retirement income, although in my case it will be the major portion ($5K/month). As UPSers we have access to a variety of investment vehicles, to include the 401k and DSPP, to supplement our pensions. With two kids I do realize that it is not always easy to contribute to our 401k's but it is possible to contribute while maintaining the same take home pay--all you have to do is adjust your withholdings. The more you contribute the higher your withholdings should be. Contributions to your 401k come right off of the top of your yearly pay when doing your taxes which reduces your tax bill. Investments within your 401k are an individual choice based upon your level of risk but should be focused on more stable choices as you near retirement. Finally, for those of us 50 or over there is a "catch-up" feature which allows us to invest an additional $5K/year in our 401k's. The catch up when coupled with the IRS mandated contribution limit ($16.5K for 2011) means you can contribute up to $21.5K each year.
You may laugh, but AARP has some excellent information on preparing for retirement.
To answer my daughter's question, I have several ideas for my retirement years. First, I love numbers and will take a tax preparation class. We have a local group that does taxes for free and I would like to volunteer. Second, I have always wanted to learn how to play golf. Third, I have always wanted to learn how to fly an airplane and plan on getting my private pilot license.
Retirement is our reward for 30 (or more) years of service. It is essential that you properly plan for retirement or you may end up as a Walmart greeter. Dave.