Pensions vest as early as 5 years. Saying you have “a fully vested pension” says both Jack and shit. It means nothing. Pensions and 401(k)s at most companies are separate assets/investments.
Pensions are usually saved for more blue collar/government jobs, as people that are in those tend to stay in them for (on average) 25+ years. They also tend to be union jobs, so part of those dues are for this fund. As previously stated, they can vest as early as 5 years. Saying you have “a fully vested pension” is not a flex. It just means “I’ve been at my job 5 years or more.” Hurray. You’ve done the equivalent of getting through the probationary period of most union work, only financially. In a divorce, a pension can be fully taken by spouse or family. Which is why there are people that will kill for them.
401(k) plans, on the other hand, usually don’t fully vest until a set period of employment. There are a couple different styles. There’s graded, which means after certain periods, you earn a percentage of ownership, and the longer the period, the more ownership. Then, there’s cliff, which means all or nothing, until the time you reach. It varies per company. Also, YOU pay into these, and the company matches that (up to a certain point). That means BOTH of you are vested in your employment. A 401(k) can be taken in divorce insofar as whatever was accrued during marriage can be taken, but anything before can’t.
Source(s) for all of the above: 3 CPA cousins, 3 uncles in Armed Forces/police/government jobs, and myself, who has worked at several Fortune 500 companies.
It would’ve been a better flex to say “I have a fully vested 401(k),” because that means you’ve probably been somewhere for (on average) 8-10 years. In your 30s…..you’re basically giving the financial equivalent of “I have a girlfriend! You don’t know her, she’s from [insert X country here].”
But, alas, you, as usual, went with the stupid option. Then, decided to think you’re the smartest guy in the room, which you aren’t. You’re a mental midget compared to me, my dude. Just give it up.