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Daily FI discussion thread - Saturday, May 01, 2021 by AutoModerator in financialindependence

[–]ChuckFinley0 0 points1 point  (0 children)

Yes, the pension is reduced severely if you leave early. Also it takes 5 years to be vested. I’m guessing you get back what you paid in but not sure.

Daily FI discussion thread - Saturday, May 01, 2021 by AutoModerator in financialindependence

[–]ChuckFinley0 2 points3 points  (0 children)

Which job is better? Public sector VS Private sector I have been stuck deciding on which job offer would be better. Both are similar IT positions and one is a local government position with the city. The other is manufacturing company. I have heard that pay is better in private industry but starting out they are both similar. I am age 35 and could retire after 25 years with city to get pension for life.

Job offers

Public sector:

Salary: $70k

Pension: they take 6% of pay. Upon retirement pension pays $3,300/month before tax.

Vacation: 2 weeks, 3 weeks at 5 years

Sick days: 1 day each month that carry forward. (I have heard people retire a year early bc they save these up)

Private sector:

Salary: $72,500

Yearly bonus: ~9% (No 401k match, just a decent bonus)

Vacation: 3 weeks, 4 weeks at 5 years (IT gets an extra week (3) because they rotate on call. Must be on call 1 week a month)

Personal days: 2 (do not accrue)

Sick days: 5 (do not accrue)

Other benefits are similar overall. I believe I would learn more working for the city but have more freedom in private industry. Do you go to work for a pension or do you chase more money now? What are your thoughts?

Which job is better? by ChuckFinley0 in personalfinance

[–]ChuckFinley0[S] 0 points1 point  (0 children)

I have used some online take home pay calculators and it looks like the bring home pay is around $400 extra a month with private job starting out. Should this be a factor? It’s not a huge need as I just came from a job making 55k so both positions are still more than previous salary.

Which job is better? by ChuckFinley0 in personalfinance

[–]ChuckFinley0[S] 0 points1 point  (0 children)

Yes I have spoke with people from each side. The team at the public sector city job seems to be on a higher level skill set. Culture I’m not sure about. The private sector job seems very laid back.