Retirement Benefits Poll

[old woman]

I will only have SS and not a lot of it about 1,200 from the statements I get. Very scary and I am already 60. I have a roommate/boyfriend now but he is on notice that if he screws up again he is out. I required he quit drinking this week and so far I think he has, if he drinks again he can find another place to live.

 

[martyb]

As a fed employee retiree (4 yrs from now):

COLA Defined Benefit Pension
TSP (401K without matching)
Health Care bennies
Reduced SS (Windfall Elimination Provision, probably collect mby $350 mo.)
Whatever accumulates in my ROTH

As a military reservist retiree (9 yrs from now at age 60):

Military pension with COLA
Option to use TriCare if I want to, but probably won't.

 

[Sue J]

DH will have a DB COLAed pension (state pension system) with health care. He just reached 25 years of service and if his job lasts he hopes to stay another 5 years and retire in 5 years/30 years of service at age 58. He can start collecting the pension with 25 years at age 55 but it's reduced a lot if you have less than 30 years.

I'll get minimal SS, I was a SAHM and went back to work part-time to complete my SS credits.

DH will take the reduced pension payment with benefits to the surviving spouse. It looks like this will cover our basic living expenses and then I'll get the small SS at 62, or later if we can do without it.

DH needs another 5 SS credits, so if he ever completes that he'll be eligible for SS but it will be greatly reduced by WEP.

 

[kumquat]

Poll left me out, I think. , Therefore no vote.

Where does a DC pension fit? I didn't notice many or any responses for DC.

One caveat, I live and worked in Canada. I have:

• DC pension fund which I think of as savings
• Savings
• Cdn CPP (like ss) maybe $6K/year
• Cdn socialized health insurance (wait long enough and you'll be treated)
• Mega-corp out of country health benefits, covers emergency treatment when OOC to lifetime max of 1 mega-buck

 

[Achiever51]

I retired with a non-COLA'd DB pension from MegaCorp at age 55 after 31 years of service -- received additional credits so pension is figured as of age 62. ANd have supplemental benefit that will expire at age 62 to be replaced by SS.
Health care insurance till age 65 -- I pay 80% of any increases in costs to MegaCorp until I turn 65, then on to Medicare.
Hoping for SS.

 

[Michael Moore]

another "no choice that fits" : both of us are CSRS cola'd early-retirees who will get Medicare Part B (which we paid into) but no other Social Security benefits.

The TSP is going to sit and ride for a long time . . . .

cheers,
Michael

 

[Midpack]

Frankly, I'm surprised that almost half of participants have a pension and retiree health care still. Not at all what I was expecting. I haven't had either since 1994 and know few who do.

Evidently the generations following us won't have anything like it.

The number of FORTUNE 100 companies offering pensions in 2005 has dropped to 37, from nearly 90 in 1985.

And I wasn't able to find solid stats on all companies, but I'm confident medium and especially smaller companies are even less likely to offer any sort of defined benefit pension. So I'd guess today's workers with pensions are very few and far between, even less likely retiree health care other than the clearly troubled Medicare.

Companies trend away from pensions continues - May. 4, 2006

 

[mews]

SS and savings (401-k, ira, Roth) are it.

all this will get me, at today's market: 50 lbs of rice, 2 dead pigeons and a box of matches.

Guess I have to NOT RE.

ta,
mews

 

[Bikerdude]

To add insult to injury, those of you without a pension will probably have your State and Federal taxes jacked up to pay for those that do.

Coming up: A huge pension bailout? - MSN Money

Trouble spots in state pension system - Cracked Nest Egg- msnbc.com

 

[ziggy29]

To add insult to injury, those of you without a pension will probably have your State and Federal taxes jacked up to pay for those that do.http://www.msnbc.msn.com/id/13306633/

Don't remind me. This is an absolute outrage if it happens unless they are also prepared to bail out 401Ks and IRAs for people who don't have pensions.

Robbing from the have-nots to protect the haves. Yeah, that's real fairness.

 

[Midpack]

Don't remind me. This is an absolute outrage if it happens unless they are also prepared to bail out 401Ks and IRAs for people who don't have pensions.

Robbing from the have-nots to protect the haves. Yeah, that's real fairness.

I've never seriously considered retiring as an expat, but it seems to make more sense all the time...

 

[ziggy29]

Frankly, I'm surprised that almost half of participants have a pension and retiree health care still. Not at all what I was expecting. I haven't had either since 1994 and know few who do.

I'm not surprised at all. I don't think this group is a representative sample of society at large. The vast majority of people who don't have these things can't even remotely consider early retirement a possibility. It stands to reason that an "early retirement" board would consist primarily of people who are in the best position to retire early -- meaning much more likely to have solid pensions and health insurance covered in retirement. IMO, that is overwhelmingly becoming the ONLY way most average people have even the slightest prayer of early retirement.

Heck, I've been putting 12-20% of my income into 401Ks and IRAs for almost 20 years, so I think I have a lot more in these accounts than the overwhelming majority of market participants. And there still looks like no way it will be enough to provide me with enough income to retire early. I'm not sure it even looks like enough at my full retirement age even if I get all the SS my statements proclaim.

So if my retirement situation has eroded that badly, I can only imagine the vast majority of us poor schmucks relying on 401Ks have *zero* hope to retire early, it at all.

 

[Ronnieboy]

No pension, no retirement health benefits. Just SS if it is there, but not counting on it.

That is why:
I will work part-time when I am ready to retire early (if it can be called that) just to maintain health benefits until Medicare kicks in - if that is still there.



This is all rumor as I have not read anything concrete, but I keep hearing about the new administration just taking people's 401k's and converting them into the SS fund. I guess that can be the first 'truth vs rumor' thread. Anyone else hear the same fanatical talk?

 

[OAG]

I doubt that, but then I did not know they (the G-Men) confiscated all gold back in the 30's until recently, so I guess it could happen. They sure got a lot more information on all of us now - well at least the legal among us.

 

[mf15]

Added my vote. I was ERed/VRIPed Oct 31, have a none COLA pension, wife taking SS as of now, I have to wait 1.5 years until 62. I am allowed to stay in company medical plan until 65 but of course have to pay the monthly rate like everyone else that works at the company. Also have a years severence which wil get me over the hump until I am 62. So far so good, hopefully will not have to touch IRA/401K money
for some time to meet monthly cash flow. Thank god 401K money was in cash
through the market mess,the reason it is in cash is because I did not like the offerings from Principal, also was burned back in 2000 with IRA money at MS.
Hey OAG I was still in highschool back in 1966, but made it to the DMZ in Korea
in 1971, A 1/15 FA 2nd ID.
Old Mike

 

[OAG]

Spent 3 years in 7ID Arty (60-63) McDonald Barracks and over near "Charlie Block" which, at the time was the, 1st Cav, 1/7 Arty. Colder there than in Alaska.

 

[samclem]

This is all rumor as I have not read anything concrete, but I keep hearing about the new administration just taking people's 401k's and converting them into the SS fund. I guess that can be the first 'truth vs rumor' thread. Anyone else hear the same fanatical talk?

Here's where we discussed it. As far as I know, it's still under consideration in Congress. It is in the very early stages.
(Subsequent edit: As noted by toofrugalformycat, Congress isn't talking about confiscating 401Ks (and IRAs). I would say they are just studying the possibility of gutting the programs and providing incentives to workers to convert their existing accounts to the govt-run program, which will be part of the Social Security apparatus.

 

[toofrugalformycat]

This is all rumor as I have not read anything concrete, but I keep hearing about the new administration just taking people's 401k's and converting them into the SS fund. I guess that can be the first 'truth vs rumor' thread. Anyone else hear the same fanatical talk?

This from Factcheck.org

FactCheck.org: Are congressional Democrats talking about confiscating IRA and 401(k) investment accounts?

"We've had many queries about this doozy. They all lead back to a Nov. 4 report posted by the Carolina Journal, a publication of the conservative John Locke Foundation of Raleigh, N.C. Its headline proclaimed, "Dems Target Private Retirement Accounts: Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs." The report is wrong. There's been no such discussion. "

The Factcheck article is much longer with links to what was said.

When something sounds weird, I check factcheck.org, politifact.com, and snopes.com, and usually find a reference to it, true or false, along with documentation.

Edit: Samclem and I posted at the same time - didn't mean to step on him.

 

[FIREd]

Most of the people in my family retired early (at age 55-60). They all had some sort of pension / subsidized healthcare package. I will truly be the first one in my family to attempt early retirement on a prayer and a 100% self-built, self-managed portfolio which will be subjected to the whims of the market. In the mean time, I am still required to contribute to a pension fund (SS) which I am unlikely to benefit from. I am not complaining, just saying that the world has changed. Young dreamers who want to have a shot at early retirement will have to save like never before.

 

[Ronnieboy]

When something sounds weird, I check factcheck.org, politifact.com, and snopes.com, and usually find a reference to it, true or false, along with documentation.

Thanks for the clarification and links (and samclem).

 

[militaryman]

FERS Pension equal to 38+% of final salary @ 56 1/2 (cola's don't start until 62)

Cola'd Reserve military retirement @ 60 should equal > 8% of final salary

SS @ 62 at least 16 % of final salary (only estimating that I will get 70% of what SS statement estimates I will get to be safe) Gov FERS Supplement from 56-62 to make up this amount until SS kicks in

Stop contributing 18% of salary to 401k

These totals equal 80% of final salary


Additional 20% to be tapped from 401k

Will qualify to continue Health Benefits upon retirement from Federal Gov and double up with Tricare @ 60 when start of Mil Retirement check.

 

[W2R]

Percentages of the "hi three" (average of last three years yearly income):

10% from pension (FERS "Diet Cola", FERS is partially COLA'd so I counted it as COLA'd).
12% from SS if I take it at 62, or 16% at 66
6% from TSP (=401K), regular self-COLA'd monthly payments from "G Fund" treasuries.
0% from my pitiful little shrinking Roth. Maybe I'll use it to buy dinner some day.

The majority of my income in retirement will have to be from taxable investments.

 

[militaryman]

Percentages of the "hi three" (average of last three years yearly income):

10% from pension (FERS "Diet Cola", FERS is partially COLA'd so I counted it as COLA'd).
12% from SS if I take it at 62, or 16% at 66
6% from TSP (=401K), regular self-COLA'd monthly payments from "G Fund" treasuries.
0% from my pitiful little shrinking Roth. Maybe I'll use it to buy dinner some day.

The majority of my income in retirement will have to be from taxable investments.

Curious -- what % do you contribute to TSP that you won't during retirement? Can't that be added directly to the 28% you listed above?

 

[W2R]

Curious -- what % do you contribute to TSP that you won't during retirement? Can't that be added directly to the 28% you listed above?

Well, my contribution to the TSP is money that goes OUT... the 6% that I listed as what I will receive from the TSP after retirement is money that will come IN after I retire.... So, maybe I should subtract it, rather than adding it?

Right now, I am living on 11% to 20% of my gross pay - - 11% for usual stuff, the other 9% is for things like unexpected root canals, when the TV blows up, and so on. I contribute the maximum plus over-50 catchup to my TSP, and the maximum to my Roth, but I contribute way more than that to my retirement nestegg after taxes.

But hey, you were talking percentage of pay so I was trying to be at least a little comparable! Frankly I can't imagine anybody actually spending everything they earn. Yet some people do that, and then find their retirement is in jeopardy.

I have been very frugal with my money because I had to be after my divorce at age 50. Once I retire, I plan to spend more than I am presently spending.

 

[W2R]

Also known as the "belt, suspenders, and extra set of coveralls" category.

You know it, REW!!! The more safety nets, the better, and I think my ER plan has so many (safety) nets it looks like a shrimp boat.