Why did you retire? (states, salary, travel, security)
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When I was age 55, my company made me an offer I couldn't refuse.
They paid my salary for another year. Enhanced my pension benefit, paid for my retiree medical, vested my stock options, and offered a host of other wonderful enhancements. Of course, you don't see these great benefits anymore, but they were wonderful back in the day.
I'm retired for almost twenty years and it's been fantastic. Of course, covid has put a crimp in my plans and activities. Always travelled internationally several times a year. That's on hold now. Alas.
We may not be the greatest generation, but we are booming!
Curious - how can the pension pay more than working? I will have a pension, but no matter how long I worked, it would never be more than my work pay.
A fellow coworker retired from the government except he was under the CSRS retirement systems (rest of us newbies were under the FERS). I talked to him after he retired and he confirmed that his monthly SCRS payment is HIGHER than his salary AFTER TAX TAKE HOME PAY if he continues to work.
A simple way to look at this is a CSRS benefit can be has high as 70% of your current salary, figue your income tax bracket is 35~40% then you'd get a higher pay being retired rather than continue working. This is not including the COST of commuting to work, lunch money, etc.
When I was age 55, my company made me an offer I couldn't refuse.
They paid my salary for another year. Enhanced my pension benefit, paid for my retiree medical, vested my stock options, and offered a host of other wonderful enhancements. Of course, you don't see these great benefits anymore, but they were wonderful back in the day.
I'm retired for almost twenty years and it's been fantastic.
Curious - how can the pension pay more than working? I will have a pension, but no matter how long I worked, it would never be more than my work pay.
I do not have any details about this particular situation, but in general pensions can provide more net pay because there are no FICA deductions from a defined benefit pension plan as opposed to wages. So there is an immediate 7.65% boost there. Also, in many jurisdictions pensions are not included in net income for state income tax purposes so there is also the increase of not paying state income taxes.
Separate from the tax benefits, is not uncommon for rich union plans to provide annual pensions larger than the average wages earned by the retirees.
"Jeff Fabre, who retired from the [Nassau County Police ] department this year, will receive $221,086 annually, the highest amount of all retirees this year belonging to pension system.
Anthony Ovchinnikoff of Clarkstown who is set to receive $198,701 annually. And Thomas Cokeley of Ramapo and Edmund Leahy of Yonkers will begin earning $180,656 and $177,778, respectively."
They only thought they did. They hired me back as a consultant six months after I left. The man who was given my job, contrary to my recommendation, was so incompetent, I had to spend six months training him. I made them pay me as a consultant almost twice the amount they paid me as an employee.
A fellow coworker retired from the government except he was under the CSRS retirement systems (rest of us newbies were under the FERS). I talked to him after he retired and he confirmed that his monthly SCRS payment is HIGHER than his salary AFTER TAX TAKE HOME PAY if he continues to work.
A simple way to look at this is a CSRS benefit can be has high as 70% of your current salary, figue your income tax bracket is 35~40% then you'd get a higher pay being retired rather than continue working. This is not including the COST of commuting to work, lunch money, etc.
Okay, I get it - NET PAY. Those were some lucky ducks!!
Curious - how can the pension pay more than working? I will have a pension, but no matter how long I worked, it would never be more than my work pay.
Obviously that person must have had a lot of deductions (perhaps contributions to retirement funds?) coming out of their pay. If someone is contribution a really substantial portion, then the NET of the pension could be as much or greater than their NET paycheck.
I do not have any details about this particular situation, but in general pensions can provide more net pay because there are no FICA deductions from a defined benefit pension plan as opposed to wages. So there is an immediate 7.65% boost there. Also, in many jurisdictions pensions are not included in net income for state income tax purposes so there is also the increase of not paying state income taxes.
It is not uncommon for rich union plans to provide annual pensions larger than the average wages earned by the retirees.
"Jeff Fabre, who retired from the [Nassau County Police ] department this year, will receive $221,086 annually, the highest amount of all retirees this year belonging to pension system.
Anthony Ovchinnikoff of Clarkstown who is set to receive $198,701 annually. And Thomas Cokeley of Ramapo and Edmund Leahy of Yonkers will begin earning $180,656 and $177,778, respectively."
My pension income will be taxable income. But it's still going to be minimal as SS income is not taxed in my state.
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