Highest Paid Pilots....Part Deux

[-9Capt]

airtran retirement

Our retirement liason at Oppenheimer has a program to estimate your retirement earnings. At the time I had 29 years left till age 60 and he estimated my account at $6.3 million (in todays dollars) assuming max 401K contribution, no pay raise other than cost of living, company B-fund and a 7% avg. return (does NOT include annual stock options).

I have no idea what a 25 year career would be worth.

 

[WhiteCloud]

Alright folks, just got this info in the mail today. "2004 Major airline career earnings comparison" Based on a 25 year career, a pilot will earn (pay, bennies, "A" fund, "B" fund, 401k, etc.)......

Delta...................8.1 mil
UPS.....................7.2 mil
FedEx..................6.6 mil
Alaska.................6.3 mil
Northwest...........6.3 mil
United.................5.9 mil
Continental.........5.2 mil
Astar...................5.0 mil
AirborneExpress..4.9 mil
American.............4.9 mil
Southwest..........4.7 mil
ATA.....................4.7 mil
USAir...................3.5 mil
America west......3.0 mil


So whaddya think? How does this campare to what YOU bring home?

Those are pretty good numbers. I don't want to rain on anyones parade but did they consider furloughs? How long? USAir pension theft? Bankruptcy? It wasn't too long ago that UAL was doing well. Are they considering that SWA could also run into problems? Maybe they could get purchased by MESA? OK....off the wall.....who knows. Pardon my cynicism but these figures get trotted out and are usually used/mis-used to convince people to buy employment products of some kind. If we use industry history as part of the equation then half of the above mentioned airlines will not be here 20 years from now. Which half would that be?

 

[swaforme]

There are several calculators if you do a google search for savings calculators. They are very simple to use.

If you saved $25,000 a year in your 401K and made 7% for 30 years you end up with $2,461,091.

In order to retire with 8.5 mil. You would have to contribute $86,344 to your savings annually. And make 7% over 30 years.

 

[B1900DFO]

So if airtran captains can end up with 8.5 mill after 30 years they must be contributing about 85k/year? Wow. Sounds like whoever "ran those numbers" at Airtran needs to move a decimal point. Maybe they meant to say 0.85 million. That math definitely seems a little fuzzy.

Lets see, 10% from the company plus 10% from the employee equals 80k? So this captain in question must make roughly 400K per year to contribute 80k to the 401k. I didn't know Air Tran captains did so well.

 

[VaB]

I was wondering about those numbers myself. If they came from AIRinc, they are definetly on the high side of reality. The comparison to other airlines is probably fairly accurate though.

 

[OPIE01]

Its Career Earnings, not savings

The big money showing is career earnings not how much in savings in the end.

I bet a Capt on his 3rd marraige and few kids will still be in the poor house even after making $8 mil.

 

[swaforme]

Beside the fact that your portion of the contribution has a federal limit.

For 2003 it was $14,500.
For 2004 it is $15,000. Plus the company match.

Unless your over 55 and then you can contribute catch up amounts. At least at SWA you can.

 

[wil]

Don't forget to marry well!!