Hi, female, no money & should I take Social security income leveling option? Help!

[ivinsfan]

I applaud you for dealing with a very difficult life situation with compassion and no apparent bitterness.

You are kind and compassionate towards the less fortunate and have options such perhaps a live-in caretaker with a wage and a place to live.

A nursing home activity director or personal care attendant.

Our nearest big hospital has an attached guest house where an attendant sleeps over keeps the kitchen area clean and is on call for emergencies.

An agency in our area has personal care aides, my SIL hired one for the day of her Dad's funeral, her Mom needed help in and out of the car and to the bathroom and stuff like that.

It seems you would be a natural for many of these jobs and after interviewing you people would realize they would be lucky to have you. Good Luck.

 

[Independent]

Sticking to the numbers...

It appears that the company would give you (1500-616) = $684 extra per month for 6 years,
in exchange for giving you (616-100) = 516 less per month thereafter,.

The breakeven date on that deal is about your 74th birthday. I'd go for the regular, level pension.

And, that's ignoring the COLA in the pension. The COLA makes the level payment even more attractive. How much more depends on how they do the COLA for the stepdown option. (Also, I'm guessing on the $100 above.)

I noticed that my local Target store is advertising $11.25/hr to start. That's $1,350 per month assuming 4, 30 hour weeks. I'd be optimistic about earning enough to match your eventual SS benefit, though it may take a little while to get there.

And, ignoring the numbers, you sound like a wonderful person for your commitment to your family.

 

[gauss]

How exactly did the house ownership pass to your sister?

Did she get her name added to the deed? Did she get your parents sign a Quit Claim deed to her? If so, were your parents fully informed and aware of the result of what this would be? (ie your sister receiving the house and you, her caregiver, getting nothing?)

Probate courts can and will reverse transfers like this when the surviving sibling was not exactly above board.

-gauss

 

[Bestwifeever]

My sister is 70, in decent physical shape right now and may outlive me. She suffered a traumatic event at age 5 which left her emotionally and mentally stunted to the level of a late teenager. She was incapable of helping with the folks, and I will have to supervise her welfare for the rest of her or my life. She works a simple job and I have her set up in her own apartment, but I'm her POA and manage her expenses. She is resentful of this because she is older and doesn't perceive her inadequacies. She knows everything that I have done, but doesn't understand it's significance. She has a small pension and will get a decent SSA award shortly. I've also built up her both her 401k s to just over 100K total. She'll get the house money (maybe $90K, because market values are very low here) too per the wishes of my folks, because whether I'm around or not she can't manage on her own and will ultimately have to pay for personal or nursing care.

It sounds like your sister cannot take care of her finances and you have to oversee them (and have done well at that). Sad irony that you seem to be on the edge financially yourself--you have spent years taking care of your parents and of her economic life, while neglecting your own. If you can possibly claim half of the house proceeds, you certainly are justified to, imo.

 

[Spock]

Sticking to the numbers...

It appears that the company would give you (1500-616) = $684 extra per month for 6 years,
in exchange for giving you (616-100) = 516 less per month thereafter,.

The breakeven date on that deal is about your 74th birthday. I'd go for the regular, level pension.

And, that's ignoring the COLA in the pension. The COLA makes the level payment even more attractive. How much more depends on how they do the COLA for the stepdown option. (Also, I'm guessing on the $100 above.)
...

I think what you meant was NOT to take the income leveling pension option and to instead take the regular pension. The "leveled" pension is the one that keeps her income level by jacking up for a few years prior to SS and then dropping when SS kicks.

 

[Sunset]

Sticking to the numbers...

......d go for the regular, level pension.

.....

This is confusing as it's one or the other:

Regular Pension or RipOff Level option

 

[Huston55]

OP-

Lots of good advice on which pension to take, trying to live with your sister, and employment so, I won’t rehash that.

Did your father or mother serve in the military? If so, there is a possibility (and it’s a small possibility) that you might be eligible for Dependency & Indemnity Compensation (DIC). If either of your parents is a Veteran, PM me and I can guide you through the process of determining if you’re eligible.

I admire you for what you’ve done for your family.

 

[gauss]

Did your father or mother serve in the military? If so, there is a possibility (and it’s a small possibility) that you might be eligible for Dependency & Indemnity Compensation (DIC). If either of your parents is a Veteran, PM me and I can guide you through the process of determining if you’re eligible.
.

+1
This can be significant in the cases I have seen (where there is a surviving widow involved). Do take Huston55 up on his offer if your parents served.

 

[Independent]

Sticking to the numbers...

It appears that the company would give you (1500-616) = $684 extra per month for 6 years,
in exchange for giving you (616-100) = 516 less per month thereafter,.

The breakeven date on that deal is about your 74th birthday. I'd go for the regular, level pension.

And, that's ignoring the COLA in the pension. The COLA makes the level payment even more attractive. How much more depends on how they do the COLA for the stepdown option. (Also, I'm guessing on the $100 above.)

I noticed that my local Target store is advertising $11.25/hr to start. That's $1,350 per month assuming 4, 30 hour weeks. I'd be optimistic about earning enough to match your eventual SS benefit, though it may take a little while to get there.

And, ignoring the numbers, you sound like a wonderful person for your commitment to your family.

Edit: I see the confusion in labels.

I meant that I would take the option where the pension remains level at $616 (plus the COLA).
I would not take the option where the pension starts high and steps down.

 

[Teacher Terry]

Some places like Starbucks and Home Depot give health insurance to p.t. workers. I would get a survival job as soon as possible. Even p.t. would be a big help.

 

[UnrealizedPotential]

I would look for a job as soon as possible and delay getting the social security check as long as possible. What if you live a long time and can no longer work? What happens then? So that's why I agree with others that getting a working paycheck and having it for as long as possible. Then if you need to take SS , hey you need it. But I would put it off for as long as possible since you have no savings.

 

[USGrant1962]

rubbermaid,

I too am awed by your dedication to family and the sacrifices you made. To summarize most of the recent posts, if you can get a min-wage or better job there is no reason to take the levelized pension.

As others have noted, based on your writing skills you should be able to get a customer service or similar job, and IMO do well. My thoughts on your situation are:

• A minimum wage job is $1,200/month, which on top of your regular pension is manageable for a low cost-of-living area
• A 3% COLA on your pension is great, so you don't want to lose that by going with the levelization scheme
• If family dynamics work, living with your sister seems to be a great solution (or compromise!).

Good luck and God bless you.