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Old 02-02-2016, 06:08 PM
 
Location: Central IL
15,201 posts, read 8,509,345 times
Reputation: 35577

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Quote:
Originally Posted by BusyMeAK View Post
This is - supposedly - a "moving" story about poor old people. I would like to see this lady's budget because I know how three people can live on her income, two of them big and relatively young, so no milk and rice diet - brain can stop working on it. In the same time, this is a story about what it's cost to fulfill your dream if you are a poor financial planner. The story says - yes, it is possible, but you have to struggle. I think this lady is pretty well-off, if her only problem at the age of 80 is a joint pain and weakness from low blood sugar. So it's not a sad story, it's rather an inspiring story. And she is still on the go. She whines and complains just because it's time to her to whine and complain, and because she feels lonely, but it was her decision to live without family. (Not every family will save you from the feeling of loneliness, though). So don't pity her, envy her.
Jesus, you're cold hearted.
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Old 02-02-2016, 07:37 PM
 
2,675 posts, read 4,534,236 times
Reputation: 2131
Quote:
Originally Posted by matisse12 View Post
I have a bachelors degree and a masters degree, and almost an additional second masters degree.

My end salary was $70,000, with $50,000 to $55,000 for a good number of years before that.

Held professional positions.

I get $1278 per month in social security.

Even factoring out the people receiving social security who do not have education or professional jobs....say the average social security were $1600 or $1800 or $2000 per month instead of $1200.....it's still way less than half of a public school teacher pension.

Okay, we'll stop comparing oranges and apples, that's fine.
Comparing your social security alone (and not your 401k or other employer retirement benefit) to a public sector pension is not a fair comparison. Most public sector pensions take the place of BOTH social security and contributory retirement plans. For example, a public sector employee might contribute 10% of your salary and your employer contributes 14% of your salary. But that may be the total retirement plan for that employee. In the private sector, an employee and employer contribute (now--it used to be less) only about 7% each to social security. The employer may then provide 3%, 5%, 10% (for example) per year for other retirement benefits and the employee might put money into a 401k. The fair comparison is the total value of benefits for both employees, taking into account how much was paid by each party.

If you have only social security benefits now, that is because you and your employer did not contribute as much as (typical) public sector counterparts.
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Old 02-02-2016, 08:49 PM
 
Location: Tennessee
23,551 posts, read 17,535,380 times
Reputation: 27586
Quote:
Originally Posted by reneeh63 View Post
Jesus, you're cold hearted.
I agree it's preposterous people should feel obligated to some third world type lifestyle because of whatever circumstances.
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Old 02-02-2016, 08:54 PM
 
Location: Wasilla, AK
7,233 posts, read 4,123,924 times
Reputation: 15555
Quote:
Originally Posted by Linda_d View Post
I seriously doubt that your friend could get that large a public pension from only working 10 years as a classroom teacher, and part-time at that. He likely either held other public sector jobs or he was actually an administrator rather than a classroom teacher for at least part of his time working for the school district.
I would call $1000 a month a pittance, not a large pension. Even if you have no other debt it would be almost impossible to live on that.
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Old 02-02-2016, 08:55 PM
 
Location: Wasilla, AK
7,233 posts, read 4,123,924 times
Reputation: 15555
Quote:
Originally Posted by matisse12 View Post
I'm curious.....are government employees now suddenly called 'public service' employees?

'public service' normally has had a different meaning than 'government employee'

'government employee' or 'public employee' normally are not lumped in as public service or public service employees

I think the commonly held terms of government employee or public employee stand....rather than 'public service' employee.
Call me whatever you want. Just keep those checks coming in each month!
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Old 02-02-2016, 09:44 PM
 
Location: Tennessee
23,551 posts, read 17,535,380 times
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Quote:
Originally Posted by AlaskaErik View Post
I would call $1000 a month a pittance, not a large pension. Even if you have no other debt it would be almost impossible to live on that.
It's a nice supplement.
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Old 02-02-2016, 09:51 PM
 
5,424 posts, read 3,442,945 times
Reputation: 13693
AlaskaErik, the $1000 per month from 10 years as a public school teacher is in addition to the social security monthly income he receives from his other working years.

So if he receives $1300 from social security per month and this $1000 pension that's $2300 per month which is highly livable for most people, and a windfall for those living on much less in retirement.

To me, $2300 income per month in retirement is a large amount and very livable, and many other people would concur.

(though maybe not up to your standards)
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Old 02-03-2016, 05:09 AM
 
200 posts, read 333,042 times
Reputation: 88
Quote:
Originally Posted by GeoffD View Post
What we see today is the tip of the iceberg. More than half of current retirees have some kind of defined benefit pension. When the last of the boomers retire, it will be more like 30%. I would imagine that more than half of people age 50 today will work until they can't work and then hope the safety net will be there for them. There will be millions of people looking for low income elderly housing units that do not exist. If someone age 50 loses their job, they face all kinds of age discrimination problems even if they have kept up with technology and have 21st century job skills. You're not going to add to your retirement nest egg when you're a Walmart greeter. When you get to age 62, you're so strapped for cash that you have no choice but to start taking Social Security locking in the lowest possible pension.

Given human nature, the only way to fix this is to adopt some kind of compelled retirement savings so 20-somethings go their entire working life creating their retirement nest egg.
No need to do that...they'll just get free stuff from the government in retirement...
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Old 02-03-2016, 05:22 AM
 
Location: Myrtle Creek, Oregon
12,223 posts, read 12,487,684 times
Reputation: 19364
Quote:
Originally Posted by AlaskaErik View Post
I would call $1000 a month a pittance, not a large pension. Even if you have no other debt it would be almost impossible to live on that.
That's why people need to plan several cash streams in retirement. Add in SS and regular withdrawals from a retirement account and it's enough to live on. Cap it with a paid off home with no other debt and you can live fairly comfortably. Just $250,000 in a 401k will yield about $800/month, $1200/month SS and $1000/month pension gives $3k/month, enough to live modestly.
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Old 02-03-2016, 07:05 AM
 
Location: Tennessee
23,551 posts, read 17,535,380 times
Reputation: 27586
Quote:
Originally Posted by Larry Caldwell View Post
That's why people need to plan several cash streams in retirement. Add in SS and regular withdrawals from a retirement account and it's enough to live on. Cap it with a paid off home with no other debt and you can live fairly comfortably. Just $250,000 in a 401k will yield about $800/month, $1200/month SS and $1000/month pension gives $3k/month, enough to live modestly.
That's like the equivalent of a $50k job in a lot of states. If two people have that much coming in, that's quite a bit of money. Someone debt-free should be able to live off $3k net/month in most areas.
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