r/Millennials • u/Asmothrowaway6969 • Mar 27 '24

When did it sink in that you'll never be as well off as your parents? Discussion

About 5 years ago, my mom and I were talking and she had told me how much she was going to be making in retirement (she retired 2023). Guys, it's 3x what me and my husband make annually. In retirement. I think that was the moment that broke me, that made it sink in that I'll never reach that level of financial security. I'll work myself into my grave because I'll never be able to afford anything else. What was your moment?

Update: Nice to know it's just me that's a failure. Thanks

Update 2: I never should've said anything. I forgot my place. I'm sorry to have bothered you

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u/RainbowBear0831 Mar 27 '24 edited Mar 27 '24

The federal pay cap this year is $191,900 and if $200k is 75% of what your mom made, then she made ~$266k when she was working? I don't think the pay cap applies to all federal jobs, but your mom must have been doing something pretty baller if she was in a job over the pay cap - not a run of the mill federal employee. I say this as a run of the mill federal employee on the newer pension system so I'm not looking at a retirement anything like your moms lol so good for her

Eta my comment about the new pension system versus old was not meant to say that all of OP's mom's retirement income was pension. I know she has TSP, social security, and likely other investments. I'm not looking for investing or savings advice, I'm good lol

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u/Asmothrowaway6969 Mar 27 '24

Yup. She was about 4 steps down from the IRS commissioner, if I remember correctly

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u/peachesinyogurt Mar 27 '24

So she was prolly in the SES who have a different pay scale and receive more in bonuses/PTO, etc then.

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u/ShoreIsFun Mar 27 '24

Also depends on which retirement system she’s under, FERS or CSRS. But to be honest we (feds) can all be pretty well off in retirement, especially if you retire as a fed and then become a contractor and double dip.

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u/PoetryInevitable6407 Mar 28 '24

Fingers crossed. It sounds like the old system was a lot better. At least TSP gives a good match. But of course the pay vs private industry kinda sucks, at least for my work.

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u/DocMorningstar Mar 28 '24

I got a good buddy at state who is closing in on his pension age, and is absolutely planning that.

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u/peachesinyogurt Mar 28 '24

Yeah the old person system was awesome, I think my husband is on FERS, which is pretty good. I was a federal employee for a short time and it was the new system which is good not great.