Retirement Benefits Poll

[FIREd]

Nothing for me... Is SS still gonna be there for me in 30 years? I don't think so... But I could qualify for cheaper healthcare if I moved back to Europe.

 

[ziggy29]

Maybe I don't understand, but aren't there public sector jobs which may have a COLA pension and usually health care, but no SS eligibility?

I think there are some older public employees who were grandfathered out of SS when they started requiring public employees to participate in SS in the early 1980s. I don't think that option is available to any recently hired public employee, though.

 

[Bikerdude]

I'm retired and I have:

Defined Benefit pension (non- cola) offset by a factor at age 62 due to SS.

Subsidized health care and medigap coverage. Not offered to employee's since 2000.

Megacorp is currently having a "capital crunch" and stock has fallen 95% this year. I possibly could lose the HC benefit and have the Govmint fund my pension.

Nothing seems safe.

 

[Alan]

Good poll, I too was wondering what the breakdown was for the forum. Might have been better if SS was not included at all as I do know 1 or 2 current retirees (teachers) who do not have SS plus some of the folks here expect it will go away. I think it will be eventually reduced in value by various means but will never go away - too important a safety net.

I plan to have non-COLA pension, retiree health benefits and SS.

 

[youbet]

I would not fall into any of your given categories. I have a Pension, but will not be eligible for SS....even though I worked and paid into it for 10 years before starting my teaching career.

So others are not confused...... You ARE eligible for SS, although at the WEP rate. What you are not eligible for is a spousal or survivor's SS because of GPO. Net, however, I'd say you're better off with your teacher's pension and current SS status than if you had paid into SS for your entire career. That's why your union fights to keep you out of SS.......it's a good deal to be excused from participation and have a public sector pension instead! [/quote]

 

[youbet]

Maybe I don't understand, but aren't there public sector jobs which may have a COLA pension and usually health care, but no SS eligibility?

Ha

Yes. Many state and local jobs include govt pensions and health care but members do not participate in SS. Most K - 12 teachers are an example.

The "COLA" varies considerably. One common formula is COLA of 3% max but less if actual inflation is less. So, actual infaltion = 5%, COLA = 3%. Or, actual inflation = 1.5%, COLA = 1.5%. I call these "partial COLA" as the participant will likely end up significantly behind inflation over a number of years.

Health care coverage varies too. In Illinois, a retired single teacher is paying over $300/mo. If he/she wishes to have a spouse covered, they pay a full, unsubsidized amount which right now is in the $900/mo range. So, it's nice that it's available, but it's not free.......

People covered by state or local govt pensions who do not participate in SS may have worked under SS before or during (teacher summer jobs) their public career. If they get 40 qtrs in, they do get SS, but at a reduced rate per WEP. They also do not qualify for spousal or survivor SS if 60% of their pension is greater than what the SS payment would be due to GPO.

DW worked under SS enough to qualify. But her SS will be less than $80/mo, not enough to meet her Medicare premium. So, she'll send them a check! No complaints, as she also never paid in very much although did work enough qtrs to qualify.

 

[ziggy29]

The "COLA" varies considerably. One common formula is COLA of 3% max but less if actual inflation is less. So, actual infaltion = 5%, COLA = 3%. Or, actual inflation = 1.5%, COLA = 1.5%. I call these "partial COLA" as the participant will likely end up significantly behind inflation over a number of years.

Or maybe "Diet COLA"...

 

[youbet]

Or maybe "Diet COLA"...

Good one Zig!

 

[calmloki]

Good thing: rental property income is unearned per the IRS - so no SS tax removed.
Bad thing: no SS tax paid for the last umpteen years means almost no SS to look forward too.

Good thing: selling our property should cover our retirement expenses.
Bad thing: selling property at our desired retirement time - now.

Good thing: rental property income.

 

[tangomonster]

I appreciate your asking this, Midpack, because sometimes I feel like I'm the only one here who doesn't have a pension and health benefits. Now I see that I'm not---but the majority definitely do---60% have a pension, some with health benefits as well.


For me:
No pension, no health care. Hope to get SS in 7 years, but who knows?

I don't know if I would feel as "independent" if I was relying part/most/all on a pension and subsidized health care, but I might feel more secure! Instead of FIRE, maybe SIRE (secure income, retire early)?

In my next life, I'm retiring with a COLA pension! But this may need to involve time travel backwards in addition to reincarnation, since pensions will be very rare in the future.

 

[JohnP]

Looking Ahead, ha, youbet, ziggy29... If you have 10 years or more under SS you are eligible, no matter what, for SS income of some sort after age 62. If one has a pension where you did not make a contribution to SS, then your SS will be limited by the "WEP" or the Windfall Elimination Provision; WEP reduces any SS based on a sliding scale... the more your non-SS pension the lower your WEP-impacted SS payment. There is also a reduction in the WEP impact between 20-30 SS years.

I have a friend who was hired into Federal Civil Service after he had worked 30 years under SS; today, at 75 years old, he is still working for Civil Service but is collecting full SS payment based on his 30 years under SS. He's still working because he has a strong work ethic and he is doing some of the most exciting work that a technologist can do.

So, I'd recommend that Looking Ahead further consider her SS options when getting close to being SS-age-eligible.

JohnP

 

[ziggy29]

Looking Ahead, ha, youbet, ziggy29... If you have 10 years or more under SS you are eligible, no matter what, for SS income of some sort after age 62.

Under current rules. Congress can -- and does -- change the rules at any time. There's NO guarantee we'll always be eligible or that we'll get anything at all.

Having said all that, I certainly expect it to be around when I retire, and I may even get some... but I have a feeling that it will be more heavily means-tested than it is today.

 

[boont]

Just Lucky I Guess

Retired early with a union pension including health and dental care. Full Social Security starts tomorrow. Ginnie Maes, a little foreign stock, a little S&P as of late.

Rental income (increasing). A lot of equity in well located California real estate which includes a ranch in the wine country which spins off some further rental income.

Some copyright and trademark income.

Too much cash, but I think this will come in handy very soon.

b.

 

[shoe]

Subsidized retiree Health Care
COLA'd DB pension with survivor benefits
Small social security due to WEP-will not take until spouse is 70

Grateful as all get-out that DH was a teacher.

 

[Poundkey]

These results really surprised me. I figured the SS only group like myself would be much smaller. Good poll.....

 

[unclemick]

Maybe I don't understand, but aren't there public sector jobs which may have a COLA pension and usually health care, but no SS eligibility?

Ha

Yep - a reasonable contingent of retired railroad cats at my doughnut shop. Aka 'the rich guys' - they can afford the jelly filled.

heh heh heh -

 

[mickeyd]

There was no selection for my situation as I have a pension (COLA), a pension (non COLA), health benefits and SS. I have yet to pull the cord on the non-COLA and SS benefit as they are still climbing in value and I am doing ok with the other two benefits that are activated so far.

 

[Walt34]

COLA'd pension, SS later, subsidized heath care (I pay 30% of the total premium), and savings. But like everyone else my deferred comp account has taken a beating.

 

[Moemg]

Survivor pension with cola benefits and health care , SS at 62 and investments .

 

[Midpack]

Midpack - probably need to have a "none of the above" category. I will be eligible for SS under today's rules, but the rules may change, and/or SS may go belly up by the time I am eligible. Therefore, in my projections SS is never included....thus I have not voted.

R

That occurred to me and I probably should have, but I assumed everyone assumes they will get something from Soc Sec until 2041 (or whatever the latest crossover date is). I'd suggest folks like you vote Soc Sec...

 

[Fireup2020]

Two cola'd pensions, health care from both, plus the VA, TSP, Deferred Comp, savings/investments...unless w*rking for 12-17 more years kills me first!

 

[hankster]

DB pension for me (non-COLA) Eligible at age 55.
Small state pension for DW at age 65
S.S. for both
Retiree health benefits (company contribution is presently capped at a fixed $ amount per month, retiree responsible for premiums above that amount, so who knows how good this will be in the future?)

 

[tightasadrum]

I'm not taking it yet, but,last time I checked, I have a non-COLA'd pension waiting for me to start. Should also have a pretty good SS check, unless it gets complicated by means testing or something. I'm already getting retirement medical, although cost increases are born by me, not the company. All in all, it's not great, like a government pension, but it's better than a stick in the eye.

 

[BanDit1]

Me: Age 59, COLA Pension, TSP

DW: Age 53, IRA/401K at age 60, SS at age 62

Retiree Healthcare for both (not free though)

 

[Goonie]

ER'd @ 50, in April '07 with:

COLA'd DB Gov't Pension (I love getting paid monthly to not work).

Full coverage Medical, Dental, & Prescription Insurance for Life...I pay 25% of the monthly premium (Prescription co-pay is $5 generic & $20 brand-name, per 30 day supply @ pharmacy or 90 day supply by mail).

SS eligible @ 62.

IRA, Roth IRA, & other investments for further down the road.

Life is Great!