Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That is debt and do you really want to be taking that on at this stage of the game if you could have avoided it by taking advantage of your 401/403 over the years? This can be cumulative. We got hit hard with flooding in NC and their are/were constant stories about folk with no where to go or unable to rebuild because of a lack of money many seniors. Home foundations in Conn are falling apart due to faulty concrete and insurance not covering the damage.
This thread is about wanting to have a decent nest egg and having a workplace savings plan that doesn't work in your best interest. If you don't want liquidity in retirement and want to spend as much as you can while working than ok. Not you but anyone.
I thought we were talking about having a generous pension but no liquidity vs. having liquidity but no pension.
I live in one of the most generous pension states, with top 5 salaries. We can expect to have a pension about 40% of our final salary, give or take. Most retirees are not making 6 figures when they retire, so its more like 35K a year.
If there are teachers making 6 figure pensions, they are far and away a tiny extreme outlier of the norm.
That's with about 20 years in, correct? 2% per year of service is pretty standard, isn't it?
Once again folks have been tricked into responding to something that was quoted out of context with key parts left out. Here is the original quote. Note the key point isn't that 150K is no panacea but that the lack of liquidity is the problem. Liquidity or savings which as we all know becomes necessary to pay large costs without debt. If you have 150K income and are saving investing then you logically are beginning to have savings.....
I believe the whole discussion got derailed by this:
Quote:
Originally Posted by StealthRabbit
Or local news did a 'Retired Teachers' 5 day report. Most of the interviews were overseas, (Tahiti, Belize, Riviera, Italy, France...) where double income, retiree couple (ex USA teachers) were having to 'get-by' on $120k to $200k pensions and they had full medical.
I'm sure things are changing!
Which as best I can tell never was sourced, but reports numbers that, even if true, are so far into the extreme outliers that they don't make sense.
Because s/he said retiring with a pension that is 40% of salary. I think 2% for each year of service is pretty standard. (Perhaps others can chime in and say?)
Of all California teachers retiring in 2012-2013, 34% have pensions of 68.4k or higher. Note that these are the teachers who worked for 30 years or more. If two of those people are married to each other, they certainly fit into that two person 120k - 200k range.
The pensions are tied to years of service. Those with 40 year or more of service received an average pension of $107,088. Those with less than 5 years of service received an average pension of $3,732.
Because s/he said retiring with a pension that is 40% of salary. I think 2% for each year of service is pretty standard. (Perhaps others can chime in and say?)
The post said 40% of the final salary, but unless someone starts at age 40 I don't know anyone whose final salary was after only 20 years.
I believe the whole discussion got derailed by this:
Which as best I can tell never was sourced, but reports numbers that, even if true, are so far into the extreme outliers that they don't make sense.
Not really an outlier. I often note to one retired California teacher who has often shared that he has a modest 63ishK pension and is not eligible for SS. I note to him that if married to a female clone of himself they would have a combined pension over 120K. I won't share much on my situation but everyone I know who are both pensioners are well in that range with SS. Again waiting until 66 or 70 can kick you higher in that range. Add on top of that your investment income if you participated in a work place savings you are all the higher.
My mom is a retired teacher and has a pension. Her pension and SS combined are $100 a week more than she made working....essentially she got a $5000 raise to quit. She had the older retirement plan and worked there 33 years. Newer teachers got shuffled into a 401K type offering and probably will not do as well. Her car and house were paid for so she is having a decent retirement. She is looking to buy a new home for about 300-325K in the next year and will pay cash.
Another pair of retired NY teachers I know sold their house and moved to Florida and bought a $900,000 house with a 500K mortgage. They have nice cars, take nice vacations and seem to have a good retirement going. I suspect their NY house sold for a premium (expensive Long Island town) and they had multiple rental properties as "side income."
Of all California teachers retiring in 2012-2013, 34% have pensions of 68.4k or higher. Note that these are the teachers who worked for 30 years or more. If two of those people are married to each other, they certainly fit into that two person 120k - 200k range.
The pensions are tied to years of service. Those with 40 year or more of service received an average pension of $107,088. Those with less than 5 years of service received an average pension of $3,732.
This is my understanding from the California retired teachers I know... Dad taught Public High School at one time and had a lifetime credential...
Many of his friends did real well... a couple started back when he did right out of college and taught history and coached... 40 years and retired at age 62 with excellent pensions.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
