Stay for a pension?

[hz80408]

Hello again MM. H and I have been talking about considering moving for a while now and H is starting to apply to jobs. I've recently kind of changed my mind because of work. Some weeks I love my job and other weeks it's so-so. We're 26 and don't want to start thinking about kids until we own a place (rent now). We live in HCOL (Chicago) and are thinking that once we'd move, buy a place, then we'd start TTC around age 30 or so.

I have a few reasons I think it'd be smart of us to wait another 2 years and am wondering if I'm on a MM track for having these thoughts to wait on move:
1- I'm an engineer and taking my PE in Spring '13. My company will pay for my review course and I'm pretty confident I can pass on first try; when means a $7.5K salary increase for getting my license (I wouldn't be able to get my license until July based on my hire-date).

2-Pension Fund: My company offers 401K. I put in 8% right now and they match 2%; but they also offer a pension plan. I don't know the details of it without asking. But I do know it takes 5yrs to be vested and July 2014 is my 5yr date.

3-A little arbitrary, but our company is planning a huge anniversary celebration to Puerto Rico for a wknd in Sept 2014; which includes covered costs for me and H, 2 nights hotel and flight (we can also pay for additional time if we want).

Based on the above; do you think it'd be wise to hunker down for 2 more yrs in Chicago? In the meantime, to try to save money, I think we should downgrade our apt too.

And this is now a hodge-podge post, but thanks for reading.

[y4m]

So far you've only mentioned reasons to stay. What are the reasons to go?

[Deleted]

I suppose it depends on how much of a salary increase your H got and how much you could make in the new location.
Is your 401K on a 5 year vesting schedule as well?

I left a job with a pension because the increase in wage now more than made up for the crappy dollar amount they were going to give me 30+ years from now.

[Deleted]

I want to go to Puerto Rico. But yes, what are the alternatives? Where would you live? Are you applying to jobs in different locations?

[hz80408]

y4m - We're both ready for a "change"; which I know is so vague; but we've lived in the midwest our entire lives. We don't want kids yet and feel kind of like "why not now?" while we're still young and trying to find our niche. Another strong desire is homeownership. We don't think we'll be able to afford a stand alone home in the city.

Fly- true. I haven't really done job searches in my field. H has and it seems like he'd make about the same amount if not up to 20% more. Plus we're thinking Colorado, so in general we think our COL would go down. My 401K was only 1-year vesting.

[sillygoosegirl]

I might stick around long enough for the PE, but not for the other 2. The pension will not be worth much if you leave when you vest after only 5 years. And I think you are better off living somewhere you will enjoy and saving for your own international vacation.

[sh10]

As someone who moved from the Midwest for a job, I personally wouldn't do it. But that's because I'm tired of spending all my vacation days and our travel budget to visit family. I think the reasons for staying are good, you aren't unhappy. I think if a great job offer opens up, apply for it but I wouldn't look too hard.

[noodleoo]

I would not delay moving if you are 26 right now. Maybe wait to take the PE exam, but I wouldn't wait long after that. The longer you stay in Chicago, the harder it will be to move. If you want to do it, I'd just go for it asap.

ETA: also, staying for a 2 day paid vacation to Puerto Rico is really short sighted. That trip might cost you a few hundred dollars on your own. If you want to go there, just book a vacation on your own. That is not a perk worth putting your life on hold for a year for, so I'd strike that from your list of reasons to stay.

[raangoli]

I agree with sillygoose and noodleoo. The PE is probably the only reason I'd stay. The others aren't really worth considering. If you get an increase in salary, you and your husband can celebrate and go to PR on our own terms. The pension would be small enough that I wouldn't even consider it or even count on it.

[hz80408]

Ha Noodleoo; I agree that it's short sighted to stay for PR. We've afforded our own international travels this year and can continue to make this a priority in conjuction with saving for a home dp.

Thank you all for your feedback. I was along the lines of thinking that something is better than nothing for pension; so it's interesting to hear otherwise.

[hbomdiggity]

Are you a civil? Your experience needed for the pe doesn't have to be at the same firm, so most likely any new job would also pay for it and have a salary bump as well. So really none of your reasons are truly compelling to stay.

[hz80408]

Aug 28, 2012 10:52:53 GMT -5 hbomdiggity said:

Are you a civil? Your experience needed for the pe doesn't have to be at the same firm, so most likely any new job would also pay for it and have a salary bump as well. So really none of your reasons are truly compelling to stay.

I'm ME. And your point is valid. But I feel like I'm "stuck" signing up for the review course (Jan 2013ish) unless I have a new job lined up prior to that; otherwise my company will smell something fishy

[aurora]

Does Illinois have reciprocity with Colorado (or wherever you might want to move)? You might as well study for and get your PE in the state in which you want to live. At the very least, you might as well start looking into open jobs in places you might want to live, because it can take a long time to get a new job.

If you're looking for "permission" to make the risky decision, I offer this: quality of life is highly tied to my outdoor environment, so for me I would not stay in Chicago for 2 more years just for the reasons you listed. But, your priorities and therefore decision might be very different.

[chia]

We went to Puerto Rico for a week (3 of us), and it only cost a couple thousand dollars. So, I definitely wouldn't stay for that.

[ijack]

I don't see taking the PE as a valid reason to stay - you can take it anywhere.

[luvmagoldn]

I wouldn't stay for a pension - not at the stage of life you are in right now.

If you had a ton of $ in it - maybe. But for the chance to get it started? No.

[hbomdiggity]

Yeah, if you are this close to taking the exam, just stay and do it. Its not as common for MEs, but always good to have.

While I have the necessary experience, I never took the exam and wish I could have. Now I'm too far removed and would be nothing more than a business development tool.

[hz80408]

Thanks for all of the input. I'll have to check out the recoprocity; but like some of you said; a new job may not even require it. In college our professors pretty much rec'd against getting it; so I've surprised myself even that I've decided I want to go for it with my current job.

[luvmagoldn]

Aug 28, 2012 15:47:20 GMT -5 suzubell said:

I think the type of pension depends. They'll pry my pension out of my cold, dead hands but mostly because I feel like it is the biggest form of compensation that I get. I would have done anything to get to 5 years to be vested. Now that I am, I am so glad for the security.

But they can change the parameters on the pension too. A few years ago our company discontinued the lump sum payout option and "froze" the $ already paid in, then changed the schedule going forward. They could also stop contributions at a certain point if they choose - and many companies have.

All that to say, it's not something I would plan my life around.