Originally Posted by PessOptimist
Just the opposite concern. The absolute vast majority of those in the Armed Forces serve four years - not twenty. We are talking about 80%+ in the Marine Corps serve a single four year term. Those people get no retirement benefit and they can transfer no retirement assets to their new employer's 401(k) program. As far as retirement, their four years in the Corps are dead weight - but, realistically speaking, 20 years old really don't invest for retirement no matter how hard we push them. I have repeatedly been told that less than 20% of those who have served receive a pension while the rest do not serve the required 20 years.
The pension in question - and ours as well - is not an annuity. It is a budget line item. You can annuitize your TSP, but your TSP pension and the CSRS pension and the pension mentioned are line items in the Federal budget. It would be politically dangerous to cut that spending line item, but hedging the inflation formula or something like that might be something a cash flow starved government might try. That is why I want a frugal government. And, that is why I don't want current politicians promising me stuff they don't have to pay for. At some point the punch bowl runs dry and the promising politicians have already staggered home.
Lastly, most of us will work 40+ years in our lifetime. Clearing a million in 30 years would be difficult - especially considering the wages a 25 year old makes. I should be somewhere around a $600K at the 30 year mark and I didn't really start investing for retirement till I was 10 years into my career. See above for early career retirement funding dumbness. At 60 I should have that million. At 65 a million and a half. Politicians cannot directly touch it. Actuaries cannot touch it. Central planners cannot touch it. However, higher income taxes can make a grab - but there are ways around that.
P.S. I don't think the Financial Times is a pay site. I'm too cheap for that. Maybe I signed up before it became one, but...
Last edited by Boghie; 01-25-2013 at 06:12 PM.
Lookin' up at the 'G Fund'!!!