Quote:
Originally Posted by DoubleF
Is it DB vs DC or literally a savings plan?
DB vs Savings plans are totally different things. One is retirement pension and taxed at a later date and the other is basically immediate cash in pocket and taxed immediately. In the past I've heard of DB/DC+ savings but never DB/DC vs savings.
Pension wise, I've heard that 99% of the time, always DB. There's a reason why they're all being phased out and no longer an option in most situations. In a layoff situation, there's the option to be paid out (vs retaining the DB contract) and in those situations there's often a slight bump up that often makes it slightly more lucrative than the DC plans. Many people try to make the calculation that if you're expecting to jump roles, it's easier to bring DC plans with you. But I think long term, the companies would probably track DB plan owners and convert you anyways and split some of the administrative savings for DB.
I know someone who was at an O&G company for around 5-6 years and chose the DB model over DC because she knew the individual who did the model and implemented the plan offerings. When my she left the company, they offered her the cash out which basically took them to the cleaners. She knew the individual who did the calc and he estimated she walked away with almost double what she would have received under a DC plan. But he also did say that if she had left about 2 years later, they changed the calc and she basically would "only" have walked away with around 10-20% more than DC rather than nearly double.
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I am hoping, just hoping, that once in my career I can seriously land with my @$$ "in the butter" and magically get some stunning awesome bonus or buyout or early retirement. Preferably around mid-50's so it's enough, for sure, to know that I could retire and eat only the very best cat food, with gravy.