I work for the State of California, which currently takes about 12% of my paycheck that contributes to a pension, and starting July another 3% will be taken out to fund post-retirement healthcare. I've been saving another 10% into a Roth 401k provided by the State (the State does not match contributions on Roth or traditional). The pension I'm in is a 2% @60 formula, and if my napkin math is correct I should be receiving 76% pay if I retire at age 60.
What I'm having trouble with is how to safely plan my retirement assuming my pension won't be there. It's pretty common knowledge that the pension system in California has many flaws and is unsustainable (one reason we are now contributing more starting in July). When Stockton, CA declared bankruptcy, one of the first items proposed for the chopping block was the cities pensions. Is my additional saving of 10% of my paycheck too little? I have thought of contributing more, but with 13% already taken for my pension, it's not something I can easily do.
Thanks for any advice!
Submitted May 02, 2017 at 12:37PM by Diaptomus http://ift.tt/2pCaok3
