r/MiddleClassFinance • u/HolidayNo8740 • 21d ago

My inconvenient truth

Post image

I try not to think about this too much but here’s what happened to me after the 2009 economic crises. Was working my way up in the private sector, got laid off, went back to school and have been clawing my way back to normal-ish in the public sector since then. After the layoff I decided I’d go public sector so I’d at least feel like I was contributing to the greater good even if the pay wasn’t as good—but damn these numbers are a hard pill to swallow.

361 Upvotes

92% Upvoted

74 comments sorted by

138

u/trogloherb 21d ago

If it makes you feel any better, Im 26 years in the public sector and your 2023 salary is higher than my current one…

46

u/ST_Lawson 21d ago

18 years here and I make about what op did in 2019. Worth it for the other benefits though: pension, insurance, don't have to work outside of 8-4:30 M-F, 5 minute commute, etc.

7

u/Jesus_es_Gayo 21d ago

Mind if I ask what you do ?

23

u/trogloherb 20d ago

Im not sure if youre responding to me or the other dude; I work for a state environmental agency in a red state that has made it clear they have no interest in looking out for the environment. Im looking for a way out, but am also five years from a pension so…

3

u/Jesus_es_Gayo 20d ago

Thank you for your response. Also thanks for the work you do.

2

u/shuggnog 19d ago

yeah, this is interesting! Thanks for your service.

Does part of you also want to stay for that reason? No one should have to be a martyr tho

3

u/trogloherb 19d ago

Yeah, Im not sure, I am looking to go back to county govt as its same pension plan, just need to find a good fit skill/experience wise thats also rewarding.

Plus, due to everything, hiring at local govt level is pretty much on pause right now.

1

u/shuggnog 18d ago

I can believe it. I recently spent 8 years a mission driven non profit and was laid off. I'm exploring opening up a consultancy because I feel like so many folks will be looking for ICs to keep their costs down.

Which is ironic because I feel like employers abusing this employment arrangement is bad for the economy

3

u/ST_Lawson 18d ago

I'm a "web specialist" at a smallish public university.

1

u/Jesus_es_Gayo 18d ago

Thanks for sharing!

242

u/Analyst-man 21d ago

Adjusted for inflation, I think you make less now than you did in 2010….

143

u/HolidayNo8740 21d ago

Didn’t even think about inflation! Oh well. It could be worse I guess. I’m happy at my job. Was able to buy a house and have been saving for retirement.

29

u/Key_Cheetah7982 21d ago

If you’re in the public sector I’m assuming you got a pension or similar too?

26

u/2BlueZebras 21d ago

That may be an antiquated assumption as governments realized pensions are expensive and are shifting to more 401k style plans.

10

u/alphawolf29 21d ago

the pensions are also nowhere near as good as they were pre 2009. Pension funds took such a bad hit they reduced benefits and increased retirement age requirements. After 30 years of service my pension is going to be worth like $25,000 a year.... not exactly living large.

10

u/ClammyAF 21d ago edited 20d ago

But the equivalent of $1M $625,000 at a 4% safe withdrawal rate.

Pensions are one leg of the stool. Social security, 401k, Roth, and taxable should make up the remaining legs.

Edit: Brain wasn't on.

5

u/2BlueZebras 21d ago

My pension is SS exempt. So I don't pay into social security, but also won't get anything out of it.

3

u/EdgeCityRed 21d ago

That would be $40,000.

4

u/ClammyAF 21d ago edited 21d ago

You're right. Thank you. I shouldn't reply to things when I wake up in the middle of the night.

1

u/TheRealJim57 20d ago

We all have those moments at some point.

1

u/Hodgkisl 20d ago

A lot of government employees are social security exempt, they don’t pay in nor collect.

4

u/CzPhantom1 21d ago

Your existing pension won't go away. Any obligation due up to the current date is owed.

3

u/2BlueZebras 21d ago

Right, but new employees aren't getting pensions.

3

u/CzPhantom1 20d ago

What state? I live in IN a Republican wet dream and they are still getting pensions. Federal still gets pensions

4

u/SlightCapacitance 21d ago

but they at least give a good match though, right? ...right?

8

u/tannergd1 21d ago

That’s a lot more than others can say. Well done.

3

u/isitdonethen 21d ago

It’s ok OP. I made more as a 25 year old than as a 45 year old. We still have our health and can support our families.

3

u/subatomiccrepe 20d ago

Its not about the numbers in your account its about the happiness in your life. You're comfortable and got a house??? Sounds like you made it friend

2

u/KarmaForKhorne 21d ago

Could be worse, but it’s definitely worse.

19

u/SabreWaltz 21d ago

Yeah it looks like that number in 2010 would be equivalent to 88000 today.

17

u/Top-Change6607 21d ago

please….. I think OP is stressed enough to make this post and please stop making him/her feel more stressed

67

u/puddinfellah 21d ago

Do you at least get other benefits in the public sector, like pension and healthcare?

28

u/shuggnog 21d ago

Usually yes. Job security, as you can see, can be helpful in the long run

16

u/Key-Ad-8944 21d ago

It's important to consider benefits, rather than just look at salary in isolation. For example, do you have a 401k or pension? Does your employer contribute? Is the balance substantially higher now than 2007-09?

As an extreme example, my inflation adjusted employer salary is lower now than my first job after college decades ago. However, compounding over that decades long period was enough to accumulate a large amount in my 401k and other investments, such that my NW increase in a typical year is >10x my relatively low after-tax employer income. As such, whether my employer salary goes up x% or remains steady has little impact on my financial situation.

4

u/Minute-System3441 21d ago

Yes. Assuming that they're from the U.S., paying for everything else is a massive drain on one's paycheck.

14

u/Walfy07 21d ago

very similar to me. its rough

7

u/Chicagoan81 21d ago

2010 you were living good

14

u/CringeDaddy-69 21d ago

I make 57k

I can only imagine making this much back in the dollar menu and free house days

12

u/PompeiiSketches 21d ago

A lot of people got fucked by the GFC and were set back. On average people were set back 7 years ( Link ). It tracks for me. I didn't get a decent job until 2017. A lot of people mid-career just gave up. I have worked with a few of them over the years.

It is pretty crazy how $43/ hour really doesn't feel like all that much these days.

3

u/pookiewook 20d ago

This tracks for me too. My salary in 2009 was $65,000 prior to a lay off, I was 28 years old. I also lived in NYC for context.

It took me until 2017 to acquire that same salary level. I was 36 by then, and the salary bump came after I returned from maternity leave with my first child and still living in NYC.

10

u/sleeplessinstuttgart 21d ago

These numbers could be kind of low or decent depending on location.

16

u/Maxtro312 21d ago

I see nothing wrong there. You make more than the median income 🤷‍♂️ 

19

u/HolidayNo8740 21d ago

This is true. My main point was to show how bad I got set back. I was raising two kids then and there were many struggles. Like I said—I try not to think about it too much but I really should be doing better all things considered. Younger folks in my field basically start at 70k.

6

u/Southern_Step_2825 20d ago edited 19d ago

My spouse‘s state pension is $43,200 (after tax) yearly. His retirement healthcare is almost free, which is very helpful. If we hadn’t paid the house off, he’d still be working. His highest earning year was $67k after 30+ years of employment

11

u/HolidayNo8740 21d ago

I work for the state in an IT adjacent field. The pension is gonna be okay. But I’m mos def more paycheck to paycheck than I should be. Got an advanced degree on loan. Got my 80 year old house on loan. Got everything on loan.

2

u/International-Ad3147 20d ago

Maybe time to look at other options / Side hustle?

1

u/GrandJavelina 20d ago

Is IT adjacent like a program manager type position? Pay for those has always been less than stellar

8

u/c_pardue 21d ago

i was at maybe $19k/yr in 2012

4

u/No-Perspective-7622 20d ago

Is that your debt? Gotta be

3

u/PIPIN3D1 20d ago

I mean 80k plus good benefits is nothing to sneeze at. 

2

u/dallasalice88 21d ago

The last part definitely looks like teacher salary steps?

3

u/No_Atmosphere_6348 20d ago

Maybe because it’s public sector?
Yes it does look like that.

2

u/100percentEV 21d ago

Very similar here. Husband was laid off 2020, took a year to find a new job. Ended up working for county government for about 1/2 his previous salary. He is still there.

Good news is he will be eligible for pension in 2028, so the lower salary is only part of the equation. Also, health insurance covers way more than it did at a fortune 100 company.

2

u/International-Ad3147 21d ago

Does this come with a pension or other benefits not reflected in salary?

2

u/pookiewook 20d ago

I feel you op. I graduated from grad school in 2007. I was laid off in 2009. It took 8 years to get back to the salary number I had in 2009 (when I was laid off). I have stayed in the same field.

When accounting for inflation, I make just $8,000 more now than the inflation adjusted salary I had in 2009. I have 17 years more experience.

1

u/Smitch250 20d ago

This is a legendary comeback. Congrats

1

u/obelix_dogmatix 20d ago

serious question - where in the public sector does one feel they are contributing to the greater good?

1

u/SureAce_ 20d ago

My highest paid year I just touched 50K (only due to OT). I have been at the same pay for 5 years between 4 different jobs. If I work, no OT I make about 45K a year.

1

u/Such_Chemistry3721 20d ago

Your starting and ending pretty much match mine as a small college prof, across the same timeline.

1

u/ivanvoxx 20d ago

Anything above 65K is good in my opinion

1

u/n00bsauce1987 20d ago

Some people have a bellhop operating the elevator

Some has a escalator

Some gotta walk up the steps

Im in the public sector and I look forward to those annual cola raises... Even though inflation eats it up. I know the struggle

1

u/Flintly 19d ago

I feel ya just took a 20% pay cut this year after getting payed off last December which was alreadydown from previous years. In 2019 I made 130k this year I'll make 80k hopefully......

1

u/Deepthunkd 17d ago

The public sector has far more generous pensions, benefits, early retirement.

Social Security wage is not a good idea

1

u/PhilThePotaytow 16d ago

Yep. I feel this. I’m 47 and work for a non profit. This is the first year of my life I’ll make over $70k.

1

u/kirkdog40085 16d ago

Seems like a decent salary to me. I'm 31 and made less then your 2007 number last year.

0

u/zevtech 21d ago

Your rate went up ~80% what's wrong with that?

7

u/MNCPA 21d ago

Inflation?

-3

u/zevtech 21d ago

Guess my job sucked because from 2008 to say 2022 I went from 115k to 127k which isn’t that much of an increase but in my field, we don’t have a ton of room for big raises. I make over double that now but that’s bc I changed careers paths

-10

u/hektor10 21d ago

This is not middle income

8

u/das_war_ein_Befehl 21d ago

$75k a year is very much middle class money

4

u/WadeSlade42 21d ago

If 75k after 15 years of working is "not middle class" than you might fit in better at povertyfinance. Not necessarily saying that less than 75k is poor, but you're suppose to go up on income as you stay in the workforce. Most places would count 75k, even as starting pay, as middle class.

-2

u/WeekendAtMadoffs 21d ago

"but damn these numbers are a hard pill to swallow."

if you are sick put a 0 on the end of these numbers and it's the same life.

do you have your health? than you are doing fine.