Delta vs. FedEx
02-22-2016, 10:50 AM
#71
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by Coopy101
One thing , and I don't work there , at FedEx you don't have to go to 65 to get your full A plan . 25 years gets you the max. A person starting at 35 years old could go at 60 with the full $130,000 . If he has maxed out his B plan over that same 25 years and gotten a conservative 4 or 5% return he will have the luxury of deciding if he wants to go past 60.
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06-14-2016, 07:06 PM
#73
Gets Weekends Off
Joined APC: Dec 2009
Position: 737n/FO
Posts: 667
Originally Posted by Sniper
One of the 'upsides' of FedEx is the retirement, a $130k annuity for life.
Just to put that in perspective, if you are a 40 year old male today, you currently have an average life expectancy of about 78.1 years (based on the 2011 Social Security Administration Actuary table, where you'd be 35 in 2011). Pilots always assume they're 'above average', so, lets say you live to 85.
In that case, the Fed Ex annuity is 20 years of 10,833.34/month. You'd need about $1.69m when you retire to get that amount (based on a 4.5% return in retirement). So . . . what's a Delta retirement worth, right?
Delta pays you 15% of your income into a retirement plan. So, over the next 25 years, you'd have to average $180k in annual income (not including your 15% contribution) to get $1.69m into your retirement. Assuming 3% annual wage growth, that's about $121k today (i.e., if you make $121k today and your wages grow 3% a year, over the next 25 years, you'll average $180k annually, getting you $1.69m in your retirement if you have a 15% contribution).
Can a Delta pilot average around what is today $121k? I think most Delta pilots break this # within the first 5 years of working for Delta. You'd then have the next 20 years to make up for the loss in the 1st 5 years. The #'s seem very reasonable - you might not need to ever upgrade to Captain, honestly.
That's just the #'s today. Obviously, they're just a shot in the dark, since the retirement package @ Delta and Fed Ex will almost certainly change over the next 1/4 century, and, yeah, your $130k is secure @ Fed Ex, but the market could tank, and so would your Delta retirement. But, it gives you an idea of what the Fed Ex pension is worth roughly, today, assuming no changes.
As I see it, $130k/annually in retirement is well within the range of a 40 year old Delta pilot hired today.
---
My personal advice: Delta. Why? You want to live in the northeast. The NYC base at every large airline is junior (Delta, United, JetBlue). If you can live within driving distance of BOS, there's a Delta shuttle every hour from BOS-LGA (and there's 20 flights today from BOS-JFK as well, 3 of them on Delta). If you're going to commute, it doesn't get much better than that. If can live within driving distance of NYC, then that's the best, but I'm assuming any good 'Mainer' would never live that close to NYC. The greater amount of day time flying is a plus too.
2 great choices: you honestly can't go wrong. Good luck.
Just to put that in perspective, if you are a 40 year old male today, you currently have an average life expectancy of about 78.1 years (based on the 2011 Social Security Administration Actuary table, where you'd be 35 in 2011). Pilots always assume they're 'above average', so, lets say you live to 85.
In that case, the Fed Ex annuity is 20 years of 10,833.34/month. You'd need about $1.69m when you retire to get that amount (based on a 4.5% return in retirement). So . . . what's a Delta retirement worth, right?
Delta pays you 15% of your income into a retirement plan. So, over the next 25 years, you'd have to average $180k in annual income (not including your 15% contribution) to get $1.69m into your retirement. Assuming 3% annual wage growth, that's about $121k today (i.e., if you make $121k today and your wages grow 3% a year, over the next 25 years, you'll average $180k annually, getting you $1.69m in your retirement if you have a 15% contribution).
Can a Delta pilot average around what is today $121k? I think most Delta pilots break this # within the first 5 years of working for Delta. You'd then have the next 20 years to make up for the loss in the 1st 5 years. The #'s seem very reasonable - you might not need to ever upgrade to Captain, honestly.
That's just the #'s today. Obviously, they're just a shot in the dark, since the retirement package @ Delta and Fed Ex will almost certainly change over the next 1/4 century, and, yeah, your $130k is secure @ Fed Ex, but the market could tank, and so would your Delta retirement. But, it gives you an idea of what the Fed Ex pension is worth roughly, today, assuming no changes.
As I see it, $130k/annually in retirement is well within the range of a 40 year old Delta pilot hired today.
---
My personal advice: Delta. Why? You want to live in the northeast. The NYC base at every large airline is junior (Delta, United, JetBlue). If you can live within driving distance of BOS, there's a Delta shuttle every hour from BOS-LGA (and there's 20 flights today from BOS-JFK as well, 3 of them on Delta). If you're going to commute, it doesn't get much better than that. If can live within driving distance of NYC, then that's the best, but I'm assuming any good 'Mainer' would never live that close to NYC. The greater amount of day time flying is a plus too.
2 great choices: you honestly can't go wrong. Good luck.
That being said, don't think you can go wrong at FedEx as they seem to keep moving even when the economy is down and they have the best contract in the industry. Don't think you can go wrong, good luck.
06-15-2016, 06:48 AM
#74
Gets Weekends Off
Joined APC: Jul 2014
Posts: 429
Originally Posted by Rum Runner
Just make sure when you are running your numbers you include the A-Fund AND the 8/9% B-Fund for FedEx. Comparing the 15% Delta plan only to the A Fund doesn't tell the whole story.
10-27-2021, 04:13 PM
#75
Line Holder
Joined APC: Jul 2018
Posts: 69
Originally Posted by Victor Vector
Fellow Pilots,
I just got my dream job offer. Twice. Both FedEx and Delta want me to start indoc on the same day next month. I'm doing my research and looking at pay scales, retirement plans, etc. I want to live in the northeast (New Hampshire or Maine). I don't mind flying at night… sometimes.
Any advice or opinions on which offer I should take would be greatly appreciated. Or please point me to a discussion that has already occurred on the forum.
Thanks in advance!
I just got my dream job offer. Twice. Both FedEx and Delta want me to start indoc on the same day next month. I'm doing my research and looking at pay scales, retirement plans, etc. I want to live in the northeast (New Hampshire or Maine). I don't mind flying at night… sometimes.
Any advice or opinions on which offer I should take would be greatly appreciated. Or please point me to a discussion that has already occurred on the forum.
Thanks in advance!
thanks,
EO
11-02-2021, 05:53 AM
#76
Line Holder
Joined APC: Aug 2021
Posts: 90
Originally Posted by EyesOn
I was searching for domiciles and saw this old thread. Which company did you go with? Any positives or negatives to pass along?
thanks,
EO
thanks,
EO
11-02-2021, 08:16 AM
#77
Clear ECAM
Joined APC: Oct 2014
Posts: 887
Originally Posted by ogarmyopar
Also struggling with this difficult decision! I feel truly blessed to have the opportunity to choose and would be ecstatic to fly for either company. Will most likely always be a commuter for both so that doesn’t make the decision any easier.
answer them the best I can. PM if you’d like for more detailed info.
11-03-2021, 04:50 AM
#78
Gets Weekends Off
Joined APC: Jul 2021
Posts: 1,035
Originally Posted by ogarmyopar
Also struggling with this difficult decision! I feel truly blessed to have the opportunity to choose and would be ecstatic to fly for either company. Will most likely always be a commuter for both so that doesn’t make the decision any easier.
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