DW needs advice

[gerrym51]

the answer is retire now

[Tyro]

Quote:

Originally Posted by Ronstar My guess is that she wants to get as much $ from megacorp, and she's willing to stay on one more year to do so. She enjoys her job most of the time.

Your guess‽ I think that's a converstion worth having now rather than finding out wrong assumptions were made a year (or more) ago, followed by possible regrets. But that's just my opinion -- YMMV.

Quote:

She says that the extra year would be easy since I would be doing all of the housework. I don't remember this being part of the deal.

What -- you didn't read the fine print? Better do so -- there's probably more!

Tyro

[rec7]

Tough question I have worked jobs where one year was no problem and I have worked jobs where every day was a problem.

[Texas Proud]

I think the one thing that I have not seen put down is what is that worth

IOW, a 59YO female would have to pay $73K to get an annuity that paid $333 per month for life...

So, add this $73K to DW's salary and then make a decision on if that compensation is worth working....


The downside is if that $4K increase is every year... IOW, if she worked 2 more years would her benefit be $8K per year If so, at some time she should retire and start collecting...

OH, almost forgot to ask... would she qualify for her full pension the day she stopped working If so, then she falls like my sister did. My sister was a teacher... she qualified for 95% pension the day she retired... I told her that she was only working for that 5% as she already qualifed for that 95% with no work... she decided to retire since they were also going to take away the spousal SS pmts at the time...

[Ronstar]

good observation on the 4k being worth a 73k annuity. She does qualify for her max pension the day she retires - if she waits until a year from her next anniversary date. But they have some job sharing /training coming up that may not sit well with DW and that may be enough for her to pull the plug

[pb4uski]

If she hated her work, then I would say pull the plug. Since she still enjoys her work that $73k "bonus" is quite an enticement.

Has she considered dialing down to 3 or 4 days a week instead? If that is feasible and has a similar effect on maxing out her pension, it might be a nice way to transition from work to retirement.

[citrine]

Retire now....life is too short!

[Texas Proud]

Quote:

Originally Posted by Ronstar good observation on the 4k being worth a 73k annuity. She does qualify for her max pension the day she retires - if she waits until a year from her next anniversary date. But they have some job sharing /training coming up that may not sit well with DW and that may be enough for her to pull the plug

Then she is in the second situation.... working for small dollars...

IOW, my sister worked for a few years longer than she needed to get a bit more retirement... So, let's say she made $60K.... she qualifed for $54K pension... so, she works and gets $60K and a higher pension OR retires and gets $54K... so work only paid her $6K plus the higher pension....

It is different if you can not get your retirement money the day you retire...

[timo2]

This is an emotional decision, IMHO. If she is not quite ready, working 1 more year will give her more time to get ready, with the added benefit of extra money. The worst thing would be to leave just because she could and then regret it later when she needs a little extra money. However, if she is totally sick of the work place, life is too short not to leave now.

[Calico]

Quote:

Originally Posted by Ronstar She says that the extra year would be easy since I would be doing all of the housework. I don't remember this being part of the deal.

Check the fine print - with a magnifying glass.

[Ronstar]

Quote:

Originally Posted by pb4uski If she hated her work, then I would say pull the plug. Since she still enjoys her work that $73k "bonus" is quite an enticement. Has she considered dialing down to 3 or 4 days a week instead? If that is feasible and has a similar effect on maxing out her pension, it might be a nice way to transition from work to retirement.

Her company will not allow her to go 3 or 4 days a week. It’s a big non-flexible company.

Quote:

Originally Posted by citrine Retire now....life is too short!

That’s my advice – but she should at least get to her next anniversary date this August. August 2014 is when she would top out.

Quote:

Originally Posted by Texas Proud Then she is in the second situation.... working for small dollars... IOW, my sister worked for a few years longer than she needed to get a bit more retirement... So, let's say she made $60K.... she qualifed for $54K pension... so, she works and gets $60K and a higher pension OR retires and gets $54K... so work only paid her $6K plus the higher pension.... It is different if you cannot get your retirement money the day you retire...

I know what you’re saying – one of my friends had a higher pension coming than what he was making – until his accountant convinced him that he was working for negative $.
Then he quit in 2 weeks. DW would be working for a net of roughly 35k for the extra year over what her pension would be.

Quote:

Originally Posted by timo2 This is an emotional decision, IMHO. If she is not quite ready, working 1 more year will give her more time to get ready, with the added benefit of extra money. The worst thing would be to leave just because she could and then regret it later when she needs a little extra money. However, if she is totally sick of the work place, life is too short not to leave now.

I told her to stick it out through the end of this term in August. But she has the right attitude – she always says that she’s one bad work day away from retirement.

Quote:

Originally Posted by Calico Check the fine print - with a magnifying glass.

Funny – I won’t mind doing the house work if she decides to keep working. It will probably take me no more than a few hours a week. It just won’t be done right.

I told her the advice here ranges from “take the 73k bonus” to “you’re working for small dollars” - that you’re really being paid the difference between your salary and current level pension. I appreciate the advice here – it really helps me to reason things out.