In what is becoming a very commons occurrence in the US, Bank of America announced that it will be freezing it’s pension plans for existing employees starting in July. This means that worker’s pensions will only pay out whatever they’ve accrued until July. After July, Bank of America will start adding an additional 2-3% to their 401K matching for workers.
http://money.cnn.com/2012/02/23/news/companies/bank_of_america_pension/
I have to admit, every time I read that another pension plan is being frozen, I have to wonder how much longer my company will continue to keep our pension plan active. I love having a pension and really hope we continue to have one offered, although I’m not optimistic! Luckily, my company also matches in our 401K. I fully expect that, in the not too distant future, my company will cease offering the pension and will put the final burden of retirement on myself and my coworkers.
Like I said, I’m not optimistic that it’s going to be around much longer. That’s the main reason that I’ve NEVER calculated my retirement income including my pension. I’m basically expecting that I ‘m going to have to live solely off investment income and anything I get from a pension or social security will just be a bonus. It’s one of the many reasons that we max out our retirement accounts each year. Anyway, If you currently work at a company that offers a pension, don’t count too heavily on it being around too much longer. In order to protect yourself from a meager retirement, save like hell!!
