At my regional airline a ranking member of management told me that "the 401K matching plan is really a gift to management and to a few senior captains".

His point was that most of the rank and file employees did not contribute even though there was a 5% match from the company. People forget that out of that 72K regional captain salary has to come all the funds needed for retirement.

When you start to crunch the numbers it is a staggering amount. At my airline most did not even begin to contribute until 50 years of age. There just is not enough time left to build the nest egg needed for a fully funded retirement.

Even dedicated 401K savers are exposed to the turmoil of the stock market. Lately that means a loss of value. There is just no way that a 401k is comparable to an old fashioned pension. In my state mailmen, state patrol officers and department of transportation workers are eligible for a government sponsored retirement plan.

At first glance we all would like to discount the career of a government service worker until you take a look at the entirety of what they get. Last weekend I met a guy who was just a few years older than I and was just about to retire after 26 years as a state patrolman. Not only will he get most of his salary for life but he is then able to start a second career as a bailiff.

Soon he will be collecting two paychecks and he is not even 50 years old yet. There is still time for him to retire as a bailiff and possibly get a third paycheck as something else. Throughout the years mailmen and state patrol officers live a modest life but it is one that is sustainable for as long as they need it.

Compensation is much more than what a worker takes home at the end of the month but rather what they benefit from over a lifetime. It pays move overall to deliver the mail or to drive a snowplow then to be a regional airline pilot.

The State Patrolman who I met is going to be retired before most regional airline pilots even start their savings plan.

Skyhigh