NYC city job vs private sector job

[hatepotholez]

Hi everyone,

trying to get an idea of whats better. Currently i'm in the private sector with a 401k as retirement plan. My father worked for the city for 30 plus years, and my mom also works for the city. The benefits they have are outstanding, but the pay is not comparable to the private sector. I am trying to now look long term and I am being compelled to look into a city job.

Any thoughts?

Thanks!

[conquistador714]

Being a fellow New Yorker I dealt with the same dilemma. City jobs give a nice pension, medical and dental for life with low to no copays, and some of the industry is pretty relaxed. It ultimately comes down to how do you want to live your life. Typically like you mentioned, City careers give you subpar compensation up front with great retirement benefits. The private sector, which I currently work in, you get all your money up front and a standard 401k plan, but your hours are a little longer. If you can plan your money, then you can make the money work for you long term. I do not regret my choice no working in a city job.

[outatime e46]

My anecdote probably means nothing in the grand scheme of things but here goes:

When I started my career, I had 2 job offers - a private sector job and a public sector job for half the salary. I took the private sector job and never looked back. My choice was either take some risks and get rewarded in private or have a more stable relaxed life in public.

I later realized that if I get bogged down with lack of work-life balance, or my job function is threatened, then it’s easy to take my skills and go down the street in NYC and in some cases walk away with an even better offer (ignoring things like economic conditions and career paths etc - that’s on you to figure out).

And, I would have never gotten an F80 on half the salary with incremental growth in the public sector. My choice has paid off thus far.

[CachacoF80]

The city job will be much more stable during these volatile times. But switching to private may be a bit harder long term. The benefits have changed a lot over time. Defined benefit plans are not what they used to be (I work for the largest in the nation) and were so underfunded that your pension is less rich than before. Still decent but less of an incentive. And bureaucracy is a thing you will have to accept.

[hatepotholez]

The benefits of the private sector have definitely went down significantly. It would be great if I can find a city job that matches my current pay. My current job is fantastic, but thinking long term I can't simply rely on my 401k and medicare or medicaid.

[oduli81]

[QUOTE=hatepotholez;26088647]Hi everyone,

trying to get an idea of whats better. Currently i'm in the private sector with a 401k as retirement plan. My father worked for the city for 30 plus years, and my mom also works for the city. The benefits they have are outstanding, but the pay is not comparable to the private sector. I am trying to now look long term and I am being compelled to look into a city job.

Any thoughts?

I work in the private sector, and invested my money on two , three family homes. Almost paid off, i collect 6gs from each. That's my retirement plan.

[hatepotholez]

[QUOTE=oduli81;26093783]

Originally Posted by hatepotholez

Hi everyone,

trying to get an idea of whats better. Currently i'm in the private sector with a 401k as retirement plan. My father worked for the city for 30 plus years, and my mom also works for the city. The benefits they have are outstanding, but the pay is not comparable to the private sector. I am trying to now look long term and I am being compelled to look into a city job.

Any thoughts?

I work in the private sector, and invested my money on two , three family homes. Almost paid off, i collect 6gs from each. That's my retirement plan.

I like real estate, just don't like dealing with tenants lol! I think real estate prices now are too high to be profitable, you either break even or have to put out money. Sometimes you get lucky if you buy right. A good friend of mine used to be big in real estate and said there were better ways to invest, going to have to link back up with him to discuss the other options.


It seems as thought when I retire there might be no social security benefits, so honestly I don't even calculate that into my retirement. If I get it great if I don't then I was right.

[TommyLights]

[QUOTE=oduli81;26093783]

Originally Posted by hatepotholez

Hi everyone,

trying to get an idea of whats better. Currently i'm in the private sector with a 401k as retirement plan. My father worked for the city for 30 plus years, and my mom also works for the city. The benefits they have are outstanding, but the pay is not comparable to the private sector. I am trying to now look long term and I am being compelled to look into a city job.

Any thoughts?

I work in the private sector, and invested my money on two , three family homes. Almost paid off, i collect 6gs from each. That's my retirement plan.

I have a landlord friend who doesnt work that is getting burned big time during this COVID thing..

[TommyLights]

You can always go in for 5 years, vest, and get out. Then you'll have a city pension when you hit 62.

[hatepotholez]

Originally Posted by TommyLights

You can always go in for 5 years, vest, and get out. Then you'll have a city pension when you hit 62.

Interesting how does this work? Any 5 years? I thought minimum was 10.

[9M71]

Originally Posted by TommyLights

You can always go in for 5 years, vest, and get out. Then you'll have a city pension when you hit 62.

Are pensions calculated on years of service? even if you vest with the minimum yos that won't be much at all at retirement would it?

[CachacoF80]

Originally Posted by hatepotholez

Interesting how does this work? Any 5 years? I thought minimum was 10.

It depends where. Formulas nowadays are 2pct of your highest salary (averaged over a couple of years) multiplied by years of service. Depends on the city/state, 5y is the minimum. Before formulas were 2.5pct at age 55-57 and now 2pct at 62. Salaries (for
Retirement purposes) are also capped. I know people that worked for 30-40y and retired with 100pct of their salary (3-400k)! Now it's capped (again, depends where) at around 120-150. Even if you make one million, you are subject to the cap. So you have to work much longer AND have caps...

[CachacoF80]

Originally Posted by CachacoF80

It depends where. Formulas nowadays are 2pct of your highest salary (averaged over a couple of years) multiplied by years of service. Depends on the city/state, 5y is the minimum. Before formulas were 2.5pct at age 55-57 and now 2pct at 62. Salaries (for
Retirement purposes) are also capped. I know people that worked for 30-40y and retired with 100pct of their salary (3-400k)! Now it's capped (again, depends where) at around 120-150. Even if you make one million, you are subject to the cap. So you have to work much longer AND have caps...

Worth mentioning counterparty risk. Not all defined benefits plans are fully funded, many are 20-30pct
Underfunded. Is the expectation that a government will backstop an obligation? Yes. Is there a risk? Yes - Detroit, etc.

In summary, benefits are lower than before. On the health front they are still good. Many will cover 50pct of your health upon reaching 10y of service.

[Benyajawo]

I get the dilemma. I've had friends in both the private and public sectors. It boils down to your priorities. City jobs often offer great job security and benefits, but private sector jobs can have higher pay. Consider what matters most to you in the long run - security and benefits or higher income. Also, you can find some useful guides about getting the job at https://huntly.ai/. Good luck with your decision!

[KaitlynnBrennan]

It's a big decision, and it's great that you're thinking long-term about your career and retirement. City jobs often come with excellent benefits and stability, which can be a big plus, especially for retirement planning. While private sector pay may be higher, the trade-off for job security and strong benefits in the public sector can be substantial.If you're exploring sarkari result 2023 opportunities, it's worth considering those benefits. It's also essential to weigh your personal priorities and financial goals. Ultimately, the best choice depends on what aligns with your values and objectives.

[ceebucuc]

Well, you're in the private sector, rocking that 401k retirement plan, which is undoubtedly sweet.

[fingolfinett]

The benefits of city jobs can be pretty tempting, especially with retirement plans like your parents have. It's a tough call when comparing pay, though.

I remember when I was in a similar situation, torn between stability and potential earnings. I ended up taking a leap into the private sector, and while the pay was better, I always wondered about the security of a city job.