I work in IT for a school district in the state of Florida. I have been employed here for just under a year, and i have to choose between a pension plan or 401k type investment plan for the 3% that is deducted from my paycheck for retirement. I can leave with my 401k contributions after 1 year. I have to work for the state for at least 8 years to receive a pension at retirement. If i try to access my pension early, I receive a 5% tax penalty per year that I'm under retirement age (considered either 65yrs old or 33yrs of service).
I am in my mid 20s. I don't make much in my current position(<30k), but there is opportunity to grow and climb the ranks where i can make ~65k within 5yrs. I know this is a relatively low wage for the IT field, but the work schedule and benefits are quite nice. I don't mind the bureaucratic nature of government work so I'm not opposed to transferring to another part of the machine.
I'm leaning towards the pension plan but I'm worried I'll be locking myself into government work and subsequently smaller salaries. Anyone have any insights?
Submitted September 28, 2018 at 10:25AM by rhackle https://ift.tt/2NQtRwL
