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06-18-2015 12:55 PM
06-18-2015 04:55 PM
DH and I thought we'd be set for retirement. We don't live lavishly at all, don't go out for meals: vacations are few and far between. Unfortunately, we are still working past normal retirement age. Keep as much $$ as you possibly can because you may find you'll need every penny.
06-18-2015 09:07 PM
@chrystaltree wrote:I can only speak for myself on this issue. It might not be what you want to hear but that doesn't make it bashing. The way I look at it is that if I retire at 66, I can reasonably expect to live another 25, perhaps 30 years. Hubby and I have always worked hard, saved and prepared for retirement. Elders today don't just live longer, they live healthier and active lives. Our goal is to live well and to have the money to do the things we want to do. So, taking a reduced benefit for any reason at all is simply not an option. In particular, we would never in million years reduce our retirement income so that our adult children could collect something. We aren't wealthy people, no one knows what the future will bring, so that would be a foolhardy thing to do. We took care of our two adult children by paying their college tuition so they could go into well paying careers. Which they both did. One daughter is married and we paid a subtantial part of the wedding costs. We put the same amount aside for our other daughter. She's free to have it for a wedding someday or she can have it for the downpayment on a house or condo. That's it! They are on their own. They have what it takes to build their lives. We did well by them. Now it's time for Mum and Dad to look out for each other. What's ours...is ours.
Chrystaltree, you and I think a like on this subject. My DH and I have no children so may-be I never developed the thought process that a lot of people with children do, ie., that they feel they need to leave an inheritance to their heirs. If I had children, the only thing I would want to ensure is that they never had to contribute to my financial support in my old age.
When I was a young adult, I told my parents to enjoy their money. I watched them go thru hardships while I was growing up and I felt they deserved to take life a little easier after retirement. Both my parents were gone before I was 40 and while I inherited some of their estate, any child will tell you that they would rather have their parents alive with them then inheritance in the bank.
06-18-2015 09:18 PM
My actual advice would be to see a professional about this decision.
However, in the course of my career I had to look at a lot of pension plans and retiree health insurance plans and I hope you are aware that their funding is based on a number of assumptions that may or may not come true. There is not a pile of cash sitting there with your name on it. Most of your pension payouts have not even been set aside by the company. So my personal opinion is to get all you can as fast as you can.
06-18-2015 10:34 PM
06-18-2015 10:52 PM
06-19-2015 07:57 AM
Thanks everyone for your advice! I have decided to not make my DS's my benificiaries. However, I don't think I will max out my monthly (state) pension but leave a small monthly amont to DH. Not sure yet as he has his own railroad pension and also some investments. Thanks again. I really appreciate the advice.
06-19-2015 01:44 PM
@Still Raining wrote:My actual advice would be to see a professional about this decision.
However, in the course of my career I had to look at a lot of pension plans and retiree health insurance plans and I hope you are aware that their funding is based on a number of assumptions that may or may not come true. There is not a pile of cash sitting there with your name on it. Most of your pension payouts have not even been set aside by the company. So my personal opinion is to get all you can as fast as you can.
ITA - when we retired we took our pension funds as cash payouts, and added them to our IRA fund. We draw a monthly payout from that toward our living expenses. So many people we know are having their monthly pensions greatly reduced because congress just passed a law saying they could do that. ( You get who you vote for). Some friends of ours are losing 40 % of their monthly pension.
06-19-2015 02:27 PM
I just wanted to point out that the pension cuts approved by Congress relate to Multi-Employer Plans. Those are the types of plans that unions have negotiated with various employers within one industry. Some of these are in financial trouble so the benefit redutions will help the plans remain solvent. The Teamsters for example have such a fund.
If you work for a private company that has its own defined benefit plan it may be in good shape. Check for the funded status of the plan. Employers are required to give workers covered by the plan an annual statement of its status.
06-20-2015 01:18 AM - edited 06-20-2015 01:19 AM
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