News, How to retire on $12,000 a year.

[duke1946]

i can retire anytime after august 7th...will be sixty-two then...i will have about1200/mo from SS....small pension..bout $400 per month...annuity from TSP (federal 403 type plan) which will yield another 330/mo and what used to be a decent amount in private retirement plan...now only 150k (wife and I) and falling....i will keep my govt health insurance in retirement for about 240 per month for my wife and i for full coverage until medicare...once she retires we will have an additional 1200/mo from her SS my small pension, plus our private retirement plans... so while we are both vertical we should have about 3500 - 4000/mo to live on....the only drawback is that we wont own a home free and clear....that is an important part of the retirement plan that worries me...i think i will look for a nice area and rent condo or townhouse....or look outside the US.....i think we can live well on our retirement income...i sure hope so, since i am really tired of the 8-5 routine..does this sound familiar to anyone?? if so, are you optimistic or pessimistic about your future living standard???

[valleys_of_hills]

Originally Posted by nitram

Prescriptions cost an arm and a leg even after insurance, medicare/medicaid payoffs.

The most I've had to pay for a prescription on medicaid is $1. If a drug you need isn't automatically covered, then have your doctor write up the authorization, saying that you need it, and medicaid will cover it.

[nitram]

Originally Posted by valleys_of_hills

The most I've had to pay for a prescription on medicaid is $1. If a drug you need isn't automatically covered, then have your doctor write up the authorization, saying that you need it, and medicaid will cover it.

Not quite, depends on which medicaid plan you have. Medicaid pays up to $2000.00, then the donut hole where we pay 20% of costs. Plus some items are not covered.

[Tesaje]

Originally Posted by nitram

Not quite, depends on which medicaid plan you have. Medicaid pays up to $2000.00, then the donut hole where we pay 20% of costs. Plus some items are not covered.

Are you talking about Medicaid or Medicare? They aren't the same thing. Medicare is for those 65 and older. Medicaid is for people who are under a maximum income level (i.e., poor folks).

[nitram]

Both.

[Bideshi]

Originally Posted by duke1946

...i sure hope so, since i am really tired of the 8-5 routine..does this sound familiar to anyone?? if so, are you optimistic or pessimistic about your future living standard???

You are in better financial shape than most Americans but unless they change the health care system you won't be able to retire IMO. Most doctors will not accept new Medicare patients so Medicare is essentially uninsured. My advice, admittedly pessimistic, is not to tell your employer and co-workers that you want to retire. That will only put you on top of the lay off list and may cause you to have to continue working in a less desireable circumstance. You are not alone if that is any comfort. Most of us that are working today will not be able to retire at all. That is a new fact of life in America. On the positive side, the cost of renting or buying living space will be much lower in the future.