Being Laid Off

[EarlyBirdly]

I obviously don't know your insurance circumstances, but be careful about the "Obamacre wagon". Several friends got on the Obamacare exchange plans after their pre-ACA plans became too expensive, or leaving their jobs in a,couple instances, or going to part time work in one instance and it bled them dry -- exhorbitantly high deductibles along with high premiums, and difficult times finding participating physicians (seemed like a good idea at the time). The part time person went back to full time work solely because of the employer sponsored insurance. The others have all changed to private non-exchange plans or to health care coops (Medishare and another called Samaritan something). All are much happier with their coverage and have more money left in their pockets.

As is the case many times...The above is a huge generalization.


Yes, if you want to retire and have an income of 40-60k + /year you may, or may not, be in a sticky wicket. There are too many variables to waste time discussing here.


With our VERY frugal O.P. ( able to live on $1k/mo. ) he is a PRIME candidate and will receive GREAT benefits from the ACA/Obamacare.


Ask me how I know. No, actually don't...






BirdMan

 

[BeachOrCity]

A pension is " Two in the Bush ". It's nothing but a promise ( and they are made to be broken ) to pay you something in the future.


Take the Bird in the Hand...

I would caveat that most pensions are insured by PBGC which is sort of like FDIC insurance (backed by US Gov't). There are limits to the amount they insure you for, but you amount is small enough that you are way under the limits.
So even if the pension goes belly up, you will get your money (maybe a delay).

As I mentioned way earlier, your pensions annuity isn't horrible or great, so either option is OK depending on your preferences.

What happened w/ United was some employees were over the limits. Here are the maximum guarantees by age
https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee

 

[OrangeBandit]

Thanks to everyone for their advice!

 

[EarlyBirdly]

After the Court Ruling handed it to the PBGC:

"United plans to switch its current employees from traditional retirement programs, which are called defined-benefit plans, to defined-contribution plans like 401(k) programs. The federal pension agency will assume responsibility for United's plans, which cover about 134,000 workers.
"It's a hammer blow to thousands of retirees who will have to somehow make do with lower pension checks," said Joseph Tiberi, a spokesman for the International Association of Machinists and Aerospace Workers. "The promises United made to them are worthless."

Promises made today, can change tomorrow.

Take the money NOW and invest it yourself much as Lottery winners are generally advised to do.

Unfortunately I know a lot of employees/pensioners, of formerly great companies, that would advise the same if they had been given the option.


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Separate but, related thought:


I would advise watching what happens with Sears if they have to go this route. They are already "setting the table" with articles touting the ability of the PBGC to take care of their pension plan.


By "setting the table" I mean - " Lulling the Sheep" into complacency before the slaughter. If everyone called tomorrow and wanted to cash out their Pensions, things would only get worse for them. So the Company Line is - "All is well ! Remain Calm!"






BirdMan