Pensions...an old fart question

[Eagler]

As this board is filled with them, who better to ask.. 

Do or did you have a pension?

Did you pull it out as a lump sum or are you receiving monthly payments from it?

To those receiving it as monthly payments,  have their distributions changed over different economic times?

Thanks for any insight

Eagler

[AKIron]

Heard a funny one about Social Security.

Ah, you probably won't get it.

[Maverick]

I think you are confusing pensions with IRAs and annuities. A pension (at least a public civil service style) is similar to SS in that you are given a set amount each month and there is no cap to it. You cannot draw out a lump sum unless you are leaving the pension option by changing employment prior to retiring.

A pension from a private company depends on the contract you have / had with the company and how solvent they are. Toad can tell you all kinds of info about that situation.

First one is from the city / state from my PD job.

Second pension is from the Army / DOD a partial amount based upon how many years and "points" I compiled while in the Reserves and I became eligible for that at age 60. The pay is about 1/3 what I would have gotten had I been active the entire time.

[AKIron]

I retired from the Air Force in '95. E-7, 20 years and a few days. When I retired the active compensation for my rank and time is service was about $40K. Today the total compensation for the same grade and TIS is about $80K. The last COLA increase we got was pretty good but my retirement pay has probably increased 40% to 50% or so in the last 28 years. Certainly not 100% like the active compensation. No complaints from me though. I'm quite content with that.

[Eagler]

I have two pensions.

One I have the option of various monthly payouts only and one either monthly payouts or I can take it as  lump sum

My ex seabee father in law is of the pull out the lump sum to avoid losing it if the company goes belly up..the trucking co he drove for after retirement from the military took a dump shortly after he left it to retire early at 64

Just wondering what some have done here

Thanks for any info!

Eagler

[nopoop]

No complaints here. My pension is $170 a month. 
Had a ten year stretch where I made good money which bumped SSI quite a bit. Took SSI at 66. Retired at 70. Sold the house, paid cash for another. No longer have a gardner, a pool guy, or a house keeper. No longer have a 250 a month for gas. We are both have SSI, no bills and my taxes are zero. I don't touch my 401k.

Anyone that takes SSI at 62 is crazy. It all comes down to is that I see no difference in my standerd of living.

[AKIron]

No one knows what will happen to Social Security. It's been raided so often to pay for things never intended I might be inclined to start drawing as soon as I could if I were younger. I did the math and waited 'til I was 65. I still work part time. Remote IT work.   

[Eagler]

I think taking SSI is an individual decision

64 this Saturday and I don't see the need to wait another 2 years and 10 months for full retirement age to collect

Medical is my main concern as with 5 year old stents, my preexisting condition makes health insurance expensive and pretty much catastrophic coverage only as everything is under ridiculous deductibles

Eagler

[Eagler]

No one knows what will happen to Social Security. It's been raided so often to pay for things never intended I might be inclined to start drawing as soon as I could if I were younger. I did the math and waited 'til I was 65. I still work part time. Remote IT work.

That worry is just another distraction

If we have money to put illegal families in 5 star hotels and pay billions in foreign wars they will have money for SSI..just need to climb the MMT magic money tree and pick another trillion or 2...

Of course bread and gas will be quadruple but sure it will be subsidized with more funny money

Eagler

[AKIron]

If you plan to keep working while drawing SS do the math. They will deduct $1 for every $2 you make over $21,240. That's only while you are under full retirement age. Actually until the year you turn full retirement age I think. You eventually do get that back though.

[AKIron]

Medicare starts at 65. Part A is free. If you are drawing SS they will automatically deduct about $165/mo for Part B depending on your income. You don't have to buy  Part B but if you don't want it you have to tell them.

[nopoop]

Depending on your zip code part B is free. Medical is transfered to the usual plans .ie united or Humana. Medicare bills the service, not you for the the huge paperwork. Thats doctor visits, drugs, dental and eye care. Visits are zero deductable and $3000 a year for dental. Prt B is actually better than while I was working.

Eagler do some research. I was surprised on what it covers at zero cost. Or 165 a month for part B.

[Hajo]

Eagler:

I've been retired since 2012.  As far as pensions, those of us who were salaried in 1984, with the takeover by LTV, upon the merger, they took ALL management pensions.  They also gave seven million dollars to the CEO of Republic Steel for assisting in a a smooth takeover. Ya right.  They couldn't touch the Unions Pension fund.  LTV went bankrupt not long afterwords, they knew nothing about Industrial Manufacturing. The merger was likened to a Guppy trying to swallow a Whale.

Anyway at that time I started a 401k with Fidelity and managed my own account.  In 2012 when I retired at 62 I rolled the 401 into an IRA.  I have a wealth advisor watch over my IRA.  I don't worry about anything.  He has been quite successful.  I pay a small fee for his services.  I started also at retirement to collect my social security.  I live well thank the good Lord!

As far as medical I went to Anthem Blue Shield Blue cross. It was no cost  They take what I pay for medicare and cover almost everything, including surgeries, medication and I pay a stipend per month to them for eye and dental care. I had serious surgery in 2018.  For the surgery alone it was 44,000$.  It was covered.  I had to pay a few co-pays that were around 100 dollars that's it. 

Look into Medicare Advantage plans such as BSBC etc. What you get may differ.  Ohio uses BCBS and others.  Look for your options a short while before you retire.  Other Medicare advantage plans may be provided in your state.

[Busher]

Eagler:

I've been retired since 2012.  As far as pensions, those of us who were salaried in 1984, with the takeover by LTV, upon the merger, they took ALL management pensions. 

Never ceases to blow my mind that pensions are cancelled with such ease in the USA. I see a retirement pension as compensation that was deferred during a working career.... but I am also a life long Union member (ALPA) and had management tried to attack our pension plan, it would not have been pretty.

[CptTrips]

Anyone that takes SSI at 62 is crazy.

Not necessarily correct.  Many factors at play.

Wait are you talking about SS?  Or SSI?

For SS, you would have to live to at least 78-80 (I'd have to look it up) before FRA even begins to pay off.  If you die at 77 it would have made no difference retiring at 62.  See Time-Value of Money calc. 

You either get more smaller payments starting sooner, or fewer larger payments starting later.  At age 77 it's still a wash.

My philosophy is, if you like your job stay until they throw you out.  If you hate your job, it is taking years off your life.  Bail as soon as you can safely do so. 

But life is short.  Staying somewhere you hate for a few more dollars is a wasted life, IMHO.