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Old 04-27-2015, 10:37 AM
 
Location: Grove City, Ohio
10,129 posts, read 12,378,690 times
Reputation: 13951

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Quote:
Originally Posted by John13 View Post
Divorce and/or the downturn in the economy can have a big say in that.

Unexpected job loss at a critical age and most firms not hiring those who are in their 50s can wipe a person out. Maybe people should not stereotype or harshly criticize when they don't really know the details or can't relate to what many older Americans are now going through.
As far as savings go we have maybe 10% to 15% of what so many experts tell us we should have when the experts tell us we should have half a million or more for retirement.

But I don't think I need anyone crying for me because in two years we can expect a monthly income of just $5,150 for a total of $61,800 annually from just social security and two pensions. Of that amount $51,500 is from social security alone and according to How much of my social security benefit may be taxed? our social security will be taxed $344 for the year. It appears our tax liability to state and federal will be $1,500 tops. Boo-hoo!

So in our case our retirement income will exceed $60k after taxes which isn't all that far from what my full time job take home income is now. Yeah, I am scared to retire afraid I might not have enough but I recognize I shouldn't be. Personally I don't see why we would need any income from savings unless a great catastrophe punched us.

A good portion of my retirement income is from social security but only because I'm nearing 67 and not collecting benefits yet. If I can go another two or three years my social security benefit alone will exceed $3,000 and then there is my wife's benefit on top of that.

Was I smart? Looking at it I wasn't smart... I was lucky. Very lucky.

As John points out what if I had been laid off at age 60 then forced to take early benefits just to survive? I would have been screwed. Like I said I was lucky that I could work to 69 or 70.

Divorce? I married right, lucky for me again.

No planning, just luck.

But savings... what would you rather have $2,500/month retirement income with $400,000 in savings or $5,150/month with < $100,000 in savings with the $5,150 indexed to inflation?

Just hard to judge who is in bad shape if the only criteria is savings amount.
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Old 04-27-2015, 10:55 AM
 
71,511 posts, read 71,674,131 times
Reputation: 49088
Quote:
Originally Posted by Linda_d View Post
^^^


You are correct about the required costs for Medicare. Medicare Part A does not cost seniors anything. Medicare Part B premiums are $108 per month or $1296 a year. Medicare Part D has numerous plans. The best one for me in this area costs $25 a month or $ 300 a year. That's $1596 a person.

My guess, from reading your many posts, is that you value security, and you plan accordingly, which colors your choices. Your situation is also somewhat different from many, perhaps most, retirees because you have considerably more assets, which you want to protect.

Medigap insurance is optional, and many poorer seniors simply do without it. Others choose lesser plans than a medigap F plan (which is the most comprehensive plan). The f plan offered by AARP, in upstate NY at least, is $185 per month or $2220 a year per person. In some other states, it may be less. For all but the most affluent retirees, long term care insurance is simply unaffordable. These retirees don't have a "goal" of going on Medicaid if they become overwhelmed by medical/long term care expenses, and they are not living in subsidized apartments or shopping at thrift shops or using food stamps, but they realize that there's really not much they can do about it if they or their spouse run into huge expenses.
F-PLAN in queens ny is 3200.00 per person from aarp. we took a high deductible f-plan. 2100 deductible but 1100 a year premium
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Old 04-27-2015, 11:12 AM
 
26,085 posts, read 28,484,501 times
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Quote:
Originally Posted by Linda_d View Post
I think that's a good idea as a supplement to SS. In the past, there were proposals to eventually turn SS into a defined contribution plan but that's never going to fly. A mandatory 401k plan would have to be in addition to SS.
Yes, the 401K would be in addition to SS. The problem with 401ks is the administrative costs are high for small businesses. Much of that could be easily solved if they just used the federal government's plan as a template.
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Old 04-27-2015, 11:20 AM
 
Location: On the road
5,926 posts, read 2,887,264 times
Reputation: 11341
Quote:
Originally Posted by mathjak107 View Post
That is per year though. that is 12,400 exposure per couple per year. that can go on forever depending on what you have
Yeah but wouldn't that wife have paid the copay about once for her chemo series?

Expensive sure but not exactly something hitting their wallet over and over as she goes thru her treatment.
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Old 04-27-2015, 11:47 AM
 
71,511 posts, read 71,674,131 times
Reputation: 49088
not if it happens towards the end of the calendar year.
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Old 04-27-2015, 11:51 AM
 
Location: RVA
2,164 posts, read 1,265,106 times
Reputation: 4451
Of the 2 choices, naturally the larger COLA indexed SS is the more desirable. But are you are looking at the income only picture, and not the income vs expected expenses at a later age? To me, that is what monetarily unprepared to retire means, which is the point of a lot of other discussions on this forum. Exactly how much, as an individual, you feel you have to save in excess of what you need to generate income, mainly due to the cost of medical and assisted living.
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Old 04-27-2015, 11:54 AM
 
Location: San Antonio
7,629 posts, read 14,375,850 times
Reputation: 18706
Quote:
Originally Posted by freemkt View Post
Not really, I have no hedge against skyrocketing rents. My rent (for a ROOM) has soared over 60% in six years and currently after taxes and a student loan payment, rent consumes more than half of what's left.

I can easily see myself homeless before long.
It would be by choice then, and life is FULL of choices. YOUR position in life is a direct reflection on the choices you make, so CHOOSE wisely!!!!!!! If you need to review and revise your "hours worked" in order to meet your needs, then that would be the way to do it. Your rent has increased, and so has the price everyone else pays for everything over the last 6 yrs. YOU are not the only one that is dealing with increased costs....and LOTS of folks are managing and able to continue providing. An extra shift, a 2nd job, cutting back on things, even looking for a place that offers you free room and board for perhaps taking care of the place or a person in need.

Last edited by Paka; 04-27-2015 at 12:14 PM..
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Old 04-27-2015, 12:37 PM
 
11,931 posts, read 20,379,765 times
Reputation: 19328
Quote:
Originally Posted by mathjak107 View Post
price it yourself . it is all right on line.

per person basic medicare and drug plan is about 1600 or so depending on location .that is 3200 per couple.

an f-medigap plan is about 3200 in some locations like ours per person . that is about 10k and covers no dental , vision , hearing adds or any number of health related things.

that is going to be about 11-12k a year for a couple in some locations..

many go with advantage plans which are cheaper and many are pay as you go . exposure can be open ended ,especially if you need care and no one is in network when you need it.

you can't just go anywhere with an advantage plan nor is everything covered. things are only cheap until they aren't with an advantage plan

traveling can be a big risk .

my co-worker raved about how little his advantage plan cost until his wife needed chemo at 4500 a co-pay per treatment.

if medicaid is your goal then just stay poor , maybe you enjoy that life but i doubt many others would if they could help it....
We run a small business and our health insurance runs 26K a year. Now -- it's all deductible since we run a business... but still... that's 26K I can't shove into retirement.
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Old 04-27-2015, 12:39 PM
 
530 posts, read 537,630 times
Reputation: 959
Quote:
Originally Posted by mathjak107 View Post
i 2nd what you said. don't forget most of america has no savings at any point of their lives so why should retirement be different.

they adapt , they make do and they survive. nothing really different here.

where they can , working until 70 can offset not having quite a few 100k in savings. .
Like 'TuborgP' said: "Bada Bing!" ... ... I'm 70, and still working full-time - prolly will be for another 2 years, Lord Willin'! THEN (and only then), will I be able to actually, fully retire ...
... [Sorry I was late to the party ... I hate it when that happens!]

Last edited by tomchard; 04-27-2015 at 12:41 PM.. Reason: Not-Exactly "Current" Discussion ... 8^(
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Old 04-27-2015, 12:51 PM
 
29,774 posts, read 34,856,103 times
Reputation: 11687
Quote:
Originally Posted by Perryinva View Post
Of the 2 choices, naturally the larger COLA indexed SS is the more desirable. But are you are looking at the income only picture, and not the income vs expected expenses at a later age? To me, that is what monetarily unprepared to retire means, which is the point of a lot of other discussions on this forum. Exactly how much, as an individual, you feel you have to save in excess of what you need to generate income, mainly due to the cost of medical and assisted living.
That is a question that has to many different answers. It isn't just how much do you need to save but how much are you able to save above meeting your retirement budget. Pensions and SS make it easier to plan as you have a defined fixed income. For us it was a matter of following the advice from Fidelity and others on health care reserves along with emergency reserves and overall account reserves. We did what we were able to do and met targeted goals. If we don't use the money it grows and becomes more play money as we age. It is a changing dynamic as we are learning and for us the change is good. We are blessed and are cushions grow. We realize there are market cycles and lots that can go wrong but at this stage no complaints. Could we have saved/invested more. Did we need to no!
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