So I'm in my mid-thirties, female, single, and I am unusual in that I work in a job with a pension. I am 5 years from being vested, and the amount increases the longer I work there (as it should since I pay 4% of every paycheck into it).
I also have about $36,000 in a 401k type plan, which I can also contribute to but I will get no employer matching. (There's also a Roth option).
The last few years have been fairly financially devastating and I have almost no savings. I also have a $6,500 401k loan (never again!) that I've already subtracted from the 401k balance and about $10,000 in student loans.
The job I'm in is pretty ideal for my circumstances, as I have chronic medical conditions and need good health insurance and benefits. I make $45,000 a year and it's possible it may increase within the next 6 months due to contract negotiations being resolved.
Here's the problem: the pension fund is absolutely screwed up. It is incredibly underfunded, but due to the law, it is incredibly difficult to make changes to, especially to those that already drawing.
If they allowed me to convert from the pension to a 401k, I would seriously consider it, but they will almost certainly not do that anytime soon since the funds paid help keep the pension afloat.
So there's my dilemma - I absolutely need to build up a substantial emergency fund, but I also want to get my debts paid off. In addition, I need to plan for retirement that may not include much of the pension I pay into, and who knows whatever will happen to Social Security.
I have no idea how to calculate what I reasonably need to put to the side. I prefer to have the funds taken out of my paycheck, but the 401K doesn't have very many options for investing. In addition, I don't know if I should make this all regular retirement contributions, some Roth, or all Roth. And I'm sure there are many other things I'm not even thinking about.
Obviously, all suggestions are welcome.
Submitted September 03, 2018 at 02:27PM by future_hazy https://ift.tt/2CdcIYH
