You may want to discuss specifics with your HR department on how exactly retirement/pension is handled. Some people have some choices on a lump sum (where one could set up an annuity elsewhere) and other options. Spousal sign off is required by law because anyone married more than 10 years has legal rights with pension - and companies don’t go into specifics, they just get the spousal sign off.
Mother in Law had a teacher pension. I told her she needed to take better care of herself (one of her options was an accelerated pay off); she actually did take better care of herself and lived to 92.
Thanks for the replies earlier. I actually found a retirement calculator that includes pension, ss, etc. and creates a spreadsheet on my state employee deferred compensation website! I guess you don’t know what you can find until you know what you’re looking for. Spent a couple of hours yesterday working through various what-if scenarios. I work in a liberal arts field but I’m sort of geeky about things like that. And we seem to be slightly better off than I’d thought.
What do you use for estimating inflation? The program uses a 3% per year but it can be altered.
I think if you do 3/4/5% inflation and see how those look. As time goes on, you can always re-do your scenario at ‘the present moment’.
Certainly inflation is affecting all of us in some form or fashion - and one can perhaps see certain areas of spending in retirement where inflation does have an impact. If one has a motor home and travels with it – the costs of running it and going various distances for example.
It took us a little while with being retired and still making decisions along the way. How we have structuring cash flow from retirement assets to supplement SS. Continuing to meet with our financial advisor every 6 months and going to ‘state of the market’ information meetings. Making the shifts for best tax advantage once we are 72 and need to take the minimum required distributions.
DH is a home body (had to travel a lot for work - internationally and nationally for projects) - he is using a lot of time on hobby which also has youth education/schedule to follow. We just don’t spend a lot of money. Working to be healthier. I plan to do some travel w/o DH and spend time with grandchildren (which I already spend a lot more time with them). As the grandchildren get older, DH will have more things that he will like to do with them.
We still have some estate things to set up. Since neither of us have any illness to push that to the forefront…however one never knows when one’s number is up so to speak.
Having the funds doing well and in place for staying in good financial shape for retirement - that is key. Once you have that ‘peace of mind’ you can move forward with retiring when the time is right for you.
It is an exciting prospect, and DH and I are so glad we are retired!
I am surprised by how many people who consider themselves savvy investors that haven’t even heard of Bogleheads. I read the forum, but I haven’t actually posted. I did try once, but since my post was related to legislation that wasn’t passed yet I wasn’t allowed to post. Great information on that forum, including the Wiki.
Thanks for sharing, bluebayou. Based on discussions here I’ve been on Bogleheads a number of times. A lot of the info is hyperspecific and complicated - so it’s good to have the simple basics in an easily-accessed article!
Published in 2020 - some great places to visit/vacation. May consider looking to retirement place if one has a geographic preference and one matches up or looks deeper into those particular areas…
Still keeping fingers crossed that they raise RMD age again. Passed in the House. If they keep the proposed ages, both husband and I could wait until 75.
I’ve been trying to get through to the Social Security office to get a virtual appt if possible to see about my benefits . I’m 62.5 and still working. I have 20+ years (at least 40 credits) into SS but have been working the last 21 years in a state pension job.
I am trying to figure out what type of effect (what % reduction) my pension when I decide to take it will have on my SS earnings. (WEP) depending when I decide to start taking SS payment.
Apparently SS has lots of “phone trouble”! Anyone else in this situation of WEP with SS and a pension?
Maybe look at websites related to teacher retirements? Many of us retired with teacher pensions but contributed to SS earlier in our careers. My SS is less than half it would be due to WEP.
1/2 reduction seems quite a bit! Did you not have many years/credits into SS? My career will end up being largely split between SS years and pension years.
The info I see applies to spousal benefits not your benefits
Lol editing again…
From the SERS site
If you have 30 or more qualified years of earnings under Social Security, or you were eligible for either your Social Security benefit or SERS pension before 1986, the WEP will not affect your Social Security benefit. Review Chart A to determine what earnings make up a qualified year.
Sounds like the offset will affect spousal benefits but not your personal one?
Silly article, I don’t see any downside, I see it as flexibility. If one doesn’t want to delay RMDs, they can take the withdrawal right now. I suspect this bill will pass eventually, it’s a way to get people to convert to Roth IRA and the IRS can get the tax money early.
Actually the WEP is where I’ll fall. I have PERS not SERS but imagine they are similar. I’ve seen these charts but some of the calculator/table stuff is still up for interpretation. I would like someone from SS to give me more exact figures and not rely on a calculation I might do. It’s complicated!!!
And @deb922 re: your LAST edit, neither the 30 years or the 1986 conditions would apply to me (or my spouse!).
It’s all just not crystal clear and ALL THE CONDITIONS make it confusing. Thus wanting to talk to someone!
Dh was a teacher, but his ISD is one that pays into SS so we aren’t affected by WEP, I believe. It’s so confusing! Agree with whoever said above to get on FB groups with like-minded pensioners to get helpful info. Dh joined a retired teachers page and got lots of good info.
To me the benefit is flexibility/choices. We may choose to convert to ROTH, or we may choose to let it grow. If we convert to ROTH, it will be nice to have more years to spread across.
