If You Get A Pension When You Retire, You Could Be Screwed

Many of us in public safety signed up with the promise of a pension when we retire. But unfortunately, many of us will be extremely poor in retirement and may not live comfortably in our golden years as we envisioned.

The Common Pension Mentality

When I signed up as a police officer, I didn’t even think about preparing for retirement because I was promised a pension. So I thought I didn’t need to save anything because it was all taken care of for me.

Pensions Are Not “Free Money”

I was very uninformed about retirement, and my employer did not make it a priority to educate me about retirement properly. So all I knew was I figured I didn’t need to worry about it because I would get a pension, and everything would be great.

I’ve Been Paying For My Pension All Along

I thought a pension was “free money.” It was a gift given to you at the end of a long career for a job well done. In reality, I have been contributing 7.65% of my salary towards my pension every year.

The Double-Edged Sword Of Forced Saving For Retirement

On the one hand, this forced savings is a good thing. But, on the other hand, most Americans do not save 7.65% of their annual income from day one, so this has at least guaranteed I will always get some money in retirement.

Pensions Keep People From Saving

Due to the “guaranteed retirement,” many employees who expect pensions are not saving enough. While I am forced to contribute 7.65% of my income towards my retirement, this is not nearly enough to live the life I want in retirement.

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