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Switch Jobs or Stay Where I Am?

  • Last Updated:
  • Dec 6th, 2021 9:29 am
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes

Switch Jobs or Stay Where I Am?

I’ve got an opportunity to change jobs and am having a very hard time deciding on what to do. RFD users are always great and giving advice or providing insights one might not have considered. So here’s the situation:

I’ve been at my firm for almost 25 years. It’s a family run business. I’m an employee and not a partner although treated as one. There’s a fair amount of freedom so there’s never a worry about taking a day off or holiday time. I have benefits but no pension. Most days it’s pretty good but like most jobs the bad days are well, bad.

New opportunity would be more $ per year, although it has a pension so the take home amount would be an increase of only about $50 per week. The position would be for 2 years but renewable for up to 10 years, assuming I’m doing a decent job. The time demands would be greater with a full week and some evenings and weekends expected to meet weekly deadlines.

I’m in my late 40s. Is a pension at this point worth the change and extra time required? When I applied the income spread between the two was greater and it’s now narrowed quite a lot.
11 replies
Deal Addict
Jan 1, 2017
1788 posts
1805 upvotes
1. How much is the pension at the new place?
2. Do you have to contribute to it for the employer to match?
3. Is there an opportunity to grow either at your current place or the new place to increase your salary?
4. Would the extra hours at the new place be paid as overtime?
5. Are there are other players in the industry where you could apply to get much better pay and good pension?
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes
ProductGuy wrote: 1. How much is the pension at the new place?
2. Do you have to contribute to it for the employer to match?
3. Is there an opportunity to grow either at your current place or the new place to increase your salary?
4. Would the extra hours at the new place be paid as overtime?
5. Are there are other players in the industry where you could apply to get much better pay and good pension?
1. Don’t know. Public sector pension though
2. I believe I have to yes
3. Yes. Opportunities at both
4. No. Salary position
5. Not much better no.
Deal Fanatic
Mar 21, 2010
6538 posts
3582 upvotes
Toronto
Think of a pessimistic situation. Is there any risk around the future of your current firm, or the management of it? Smaller companies generally are more likely to go out of business. Or, is there the chance that e.g., a younger generation of the family takes control of the company and decides to do something different or just move you out?

If you are 100% (or near enough) confident you will always have your current job as long as you want it, I'd stay. It sounds like the new option is a bit more money but you also have to work more, and you'll just be like any other employee.
Deal Addict
Jun 11, 2010
1481 posts
894 upvotes
ottawa
benjicash wrote: 1. Don’t know. Public sector pension though
2. I believe I have to yes
3. Yes. Opportunities at both
4. No. Salary position
5. Not much better no.
Can you share some more details? What's the increase in salary, you mention $50/week is that pre or post tax (only a $2,600 raise)? Additionally, public sector pensions typically stipulate what % they put from your salary into your pension pool if you leave or retire before a certain date, what are those details? Without it we're flying blind and so are you. I'd nail those down before committing to either option.
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes
barqers wrote: Can you share some more details? What's the increase in salary, you mention $50/week is that pre or post tax (only a $2,600 raise)? Additionally, public sector pensions typically stipulate what % they put from your salary into your pension pool if you leave or retire before a certain date, what are those details? Without it we're flying blind and so are you. I'd nail those down before committing to either option.
Post tax about $50 after pension paid. It appears to be 8% from what I was told by a current employee. Who also happened to mention how much of his free time is eaten up there. I think I know my choice.
Deal Addict
Sep 28, 2006
1000 posts
952 upvotes
Toronto
Putting myself in your shoes, here is my thought process:

I am 49 years old, not that old, but its really time to start caring about my physical and mental health. The current workplace treats me well, there's flexibility and freedom. Most days are fine and there is work life balance.

New role, because of the government pension, I want to move. But I will need to assess myself financially and see how a defined pension would work out when I retire at 60-65. But it comes with weekend work, late evenings and its a 2 year contract to begin.

After its all said and done, I will probably stay at my current place, and explore different opportunities on the side whether its a business or a better/higher paying role. Just to keep healthy and to spend time with my family.

The above poster makes a good point about the family business about shutting down or the younger generation taking over and replacing you. The risk is there.

But don't forget, there is also a chance that all these public sector jobs could also take a hit along with the pensions. The government has printed way too much flippin money and everyone's thinking this will all be fine. More spending programs on the way without any consideration puts the entire country and its currency at risk. Austerity becomes inevitable.
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes
Any idea of the value of a pension paid into over 10 years at say 8-9% of 110-130k?
Deal Fanatic
Aug 31, 2017
5084 posts
2908 upvotes
barqers wrote: Can you share some more details? What's the increase in salary, you mention $50/week is that pre or post tax (only a $2,600 raise)? Additionally, public sector pensions typically stipulate what % they put from your salary into your pension pool if you leave or retire before a certain date, what are those details? Without it we're flying blind and so are you. I'd nail those down before committing to either option.
I agree. Need more numbers to assess.

Is OP strictly looking at monetary advantages? Because by all other accounts, it sounds like he has it pretty good where he's at.
Any other obligations/responsibilities?
Any potential of raise with the current company?
Any current investments?

Maybe an accountant/certified financial advisor would be a better person to ask.
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes
MyNameWasTaken wrote: I agree. Need more numbers to assess.

Is OP strictly looking at monetary advantages? Because by all other accounts, it sounds like he has it pretty good where he's at.
Any other obligations/responsibilities?
Any potential of raise with the current company?
Any current investments?

Maybe an accountant/certified financial advisor would be a better person to ask.
At this point I am strictly looking at it monetarily as I know the pros and cons of the rest. You’re correct, I do have it pretty good where I am currently. Less good elsewhere would have to bring added value some other way and monetarily is the only way I can think it could make up.

So the pension contribution rates are 7.5% on the first 62k and then 10.50% on earnings above that. These contributions are matched by the employer. It is an integrated plan with cpp.
Correct me if I’m wrong but aren’t integrated pensions basically top ups to cpp?
Deal Addict
User avatar
Dec 27, 2006
1654 posts
258 upvotes
Toronto
benjicash wrote: So the pension contribution rates are 7.5% on the first 62k and then 10.50% on earnings above that. These contributions are matched by the employer. It is an integrated plan with cpp.
Correct me if I’m wrong but aren’t integrated pensions basically top ups to cpp?
It's also my understanding that integrated pension plan top ups to cpp, though I don't know enouge to be certain. This is a very evil trick played by employers, preying on employees who don't have the knowledge in this area. The most straight pension is to base on internal factors such as earning/contribution and/or years of services alone, not on external factors such as cpp. When an employee finds out at retirement it's already too late to do anything about it, while existing emplyees don't even understand. This is especially true in large companies, exploitation at large scale.
[OP]
Deal Addict
Apr 24, 2017
2308 posts
849 upvotes
max88 wrote: It's also my understanding that integrated pension plan top ups to cpp, though I don't know enouge to be certain. This is a very evil trick played by employers, preying on employees who don't have the knowledge in this area. The most straight pension is to base on internal factors such as earning/contribution and/or years of services alone, not on external factors such as cpp. When an employee finds out at retirement it's already too late to do anything about it, while existing emplyees don't even understand. This is especially true in large companies, exploitation at large scale.
So let’s say I contribute 100k over 10 years assuming I max out the time I can work there. Then at 65 I start to collect and my pension allowance is say $1600 a month. Cpp covers $800. The remaining $800 come late from the pension at this monthly amount. That’s 12.5 years to break even. I think people generally assume a pension is on the hook for the entire amount and that it’s in addition to cpp. Which it is but not quite the way most might think.

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