Retirement Plan Advice

[Ragna]

I am actually in similar situation... a little less pension and a little more stashed away. If I put my figures into firecalc I get 100% survival even with some pessimistic assumptions (e.g., 20% cut to SS; cuts to pension). Considering the pensions are cola'd or semi-cola'd (could change, but I doubt it) and you have health care covered, I would guess you would be fine. If you computed the value of the pensions and healthcare as an equivalent savings balance you would be in the ballpark of many people on this forum.

[evilanne]

Quote:

Originally Posted by HomesteadDreamer We're both in pretty good health and we'll have TRICARE/VA for medical care for life, which will help.

For your information, with Tricare for life you must sign up for Medicare Part B at age 65. I'm not sure about VA . Medicare is currently $134/month per person but it will increase your medical expenses.

[FI_RElater]

Including Roth withdrawals as income would effectively eliminate them for that group-- the tax advantages for normal taxable accounts would then be superior; the gov would also not get any taxes from those doing conversions, as there would be no benefit.
What constitutes "huge" is a political hot potato-- a few mil for a forty-something or early sixty-something retiree isn't the same as it used to be-- (thankfully we saved a few and have a pension, but even still, we don't jet off to the islands like some who haven't saved might think, but rather expect and observe a more modest 3.5% SWR). We'll see what happens when we get to FRA for both of us...

(As noted above, already have had changes to FRA, excess taxes for SS, prior changes to my pension-- so our pound of flesh has already been extracted)

[Scuba]

Quote:

Originally Posted by Cobra9777 I think the pain will be spread around in small-ish chunks without overtly raising rates or cutting benefits or unduly impacting any one group. For example: gradual increase in the wage cap subject to SS tax (with no additional benefit), slight increase in FRA but only for very young workers, possible expansion of SS tax to certain passive income, increase from 85% to 100% taxable based on income, lower income thresholds for taxation, tweaks in the definition of income such as including Roth/HSA withdrawals along with tax-exempt interest, changes to COLA indexes and timing, tweaking the rules around spousal benefits.... plus any or all of the above could be subject to some form of means test based on any combination of "comprehensive income" plus balances in retirement accounts. I think something along those lines, if implemented thoughtfully, would be preferable to a flat 25% cut to all retirees, or an across-the-board SS tax increase for workers.

+1
These incremental changes would be much more politically palatable than a flat cut affecting only seniors.

[Brat]

Keep in mind the fact that the "Government Pension Offset" may reduce SS payments.