Retirement
 

Last night I watched a fascinating news documentary on the PBS show Frontline. The subject was on the crisis our country faces of retiring baby boomers. United Airlines was one of the featured companies. They described in detail how badly the employees were raided and what they face as a retirement future.

That old line of thinking might of worked when airlines were offering to pay a full retirement however with those going away even one furlough would be devastating to an employee managed retirement plan. The experts say that if all you have is a 401K then we all should be saving fifteen to 18 percent of salary, every year, for 30 years in order to be able to maintain our standards of living throughout retirement.

As of 6 years ago AirApps listed the average age of new hires at the majors as 37 years old. My guess now is that the new hire age is hovering around 40. 20 years at a major while enduring a furlough or two is miserably short of what is needed to save up for ones own retirement. The fat paycheck of perhaps 120K or more during the last 10 years as a pilot isn't even close to being able to plug the hole.

We all endure a decade or two of low wage abuse because we have in mind that once we make it to a major airline we will be saved. One of the biggest benefits was that they paid a full retirement. Now that those days are gong away and pay has been cut considerably it is important to reevaluate the career and its true compensation. By my calculations even if you do everything right and make it to the majors by the average age you will most likely be holding an empty bag at 60. In the new age when evaluating an airline career you need to subtract from the base salary for taxes, costs of employment, cost of education and training and 17% for self funded retirement.

You would be better served by putting the 150K spent on education and training to become a pilot into savings and spending the next 30 to 40 years working at McDonald's since it seems that is where most retiring airline employees are headed anyway. McDonald's a great 401K. In 20 years I might be thanking my lucky stars that my airline dreams were mercifully killed off while I was still young enough to be saved.

SkyHigh

Great Frontline. Every pilot needs to watch it. The important thing to understand is that the shift away from traditional pensions is universal in America today. Those opposed to changing the Age 60 rule because they still have a pension are whistling in the dark.

Companies have discovered that ending/freezing pensions is a windfall gain to the bottom line. Senior managers are not interested in your welfare. They're interested in "enhancing stockholder (them) value."

If you're not socking 15-18% into you're 401k AND getting a good return, you're falling behind.

How many pilots wished they had spent a career at McD's? How many doctors, lawyers, cpa's, engineers, etc. wished they were pilots.

Follow your dreams my friends, follow your dreams. Even if I had not won the mega lotto and gotten hired at FDX I would have stayed in the game. It's what I do, and who I am. Not an airline pilot, but a pilot.

Can't wait to get in the left seat of that 777.:)

Times
 

You have enjoyed a better return in aviation than the next generation will be able to expect. We are all happy for you and your windfall employment. If future generations were to follow your advise then they most likely will be able to add impoverished to their list of accomplishments.

In case you didn't know, the world extends beyond yourself.

SkyHigh

Hope you enjoy your career at McDs.

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No ******? I've been investing in my IRA since I was 25 and 401(k) since I was 29. My life after FDX does not depend on an "A" plan retirement.

You just don't get it, do you? There are many rewarding flying careers besides flying for FDX. If I hadn't gotten hired here I'd be somewhere else, doing what I've dreamed of since I knew what an airplane was.

Most of my friends have been at the Legacies for 20+ years. Even though they have taken a big hit they still aren't doing horrible and all (except the US guy, at least he's not furloughed) are making over $100k/year.

Future Aviators: Don't let this guy kill your dream. It's still a great life. But it's a different life than that of the ground pounders.

Forget about McDs...

Starbucks is the place to be...Many of my NCO are looking into working there after they leave the service. A few have already started the paperwork for owening their own store / coffee shop.

-LAFF

I encourage everyone to read the thread "Thoughts from a new retiree" in the Hangar. In it, I asked some of the retirees on the forum to share their perspective and one of them kindly did so.

No matter where you work now or how old you are, start saving as much as you can and as soon as you can. Time is your friend.

Flying is a noble profession, as well as a lot of fun. Speaking of which, I am off to BFI for another few hours in my favorite plane!

SkyHigh: I must add that although you have every right to post whatever you want on here I don't understand your motivation. If you've given up on flying for a living that is fine. Why come on to an aviation website and bash folks for doing what you have decided against? Why not move on? No matter what you say on here there will still be thousands of kids every year who look up into the sky and watch a plane fly off into the distance and think to themselves how cool it would be to being flying that plane. Many of them will follow through and go on to be great pilots and live the dream. Some of them will make a lot of money, some won't. Some will luck into a cush major job, sail into retirement without fuss or furlough, and others will be beset will difficulties, furloughs, bankruptcys and whatnot. Just like every other vocation out there. We have the right to PURSUE happiness and success, none to achieve it. Give advice to those that ask and offer your thoughts, but don't try to steer people away from attempting to reach their dreams.

Good luck to you.

Amen brother...................................