Retirement

[goxu1]

Finally retired, .

Do you guys up there have a specific retiring age ?
Do you get a government pension after retiring ?

[Greg_B]

Retirement.

The word mean a lot of different things to different people.

For me it was not working for a paycheck any longer, needing a break from the job.


As far as government pension, in the US we have a thing called "Social Security" A government started program from the 30's? where you contribute from each paycheck, and your employer also contributes on your behalf.

When it started the "full retirement age" was 65 years old. But some years ago they changed that age to reach that "full" payout. In my case since I was born in 1958, I have to wait until I am age 66 and 8 months to get that "full" payout each month. You can draw early for a reduced amount, or wait longer to get an increased amount.

But you can still sign up for the government health care plan called Medicare at age 65 years. It is paid for in part by taxes that came from paychecks, and a payment I have to make for each month. The cost is a base rate and then a cost adder calculated from your last two years income.

The above is a simplified description, might have left some little nuances out.

Hope that answers you question.

[Don McCombs]

Just to add an important point to Greg's explanation, the maximum benefit available from Social Security is by no means an adequate living income for the majority of US families. It is barely above the poverty level in this country. This isn't meant to be a political statement. It's just the way it is.

[Eugene]

Do you guys up there have a specific retiring age?
Do you get a government pension after retiring?

In addition to social security as mentioned above, it also depends on which type of government agency you retire from.

And there is a lot of different rules. Example. Missouri has an educators retirement system. You pay into the Missouri system but not social security.

As Don McCombs states, the payment to recipients is low and depending on your income level you also pay taxes on a portion of your social security.

[Clemsonfor]

Do you guys up there have a specific retiring age?
Do you get a government pension after retiring?

In addition to social security as mentioned above, it also depends on which type of government agency you retire from.

And there is a lot of different rules. Example. Missouri has an educators retirement system. You pay into the Missouri system but not social security.

As Don McCombs states, the payment to recipients is low and depending on your income level you also pay taxes on a portion of your social security.

Adding to your answer to his question, everyone obviously doesn't work for some form of government state, county,city , all of which are basically state anyway or federal. The majority of people work in the private sector and that can be anything from absolutely no pension/retirement plan to a little put into a retirement investment account that's market based to a full blown pension like they use to get from the big three automakers. Today I have no idea what the pension at say Ford looks like compared to 45 years ago...or what FedEx or UPS or Apples pension looks like?

Also the old federal retirement system CSRS they did not pay into social security nor did they get it. That system was set up for them to put in 30 years and then they fully retired. They got 60% of the average of their high three years of salary. I believe they maxed out at 80% if they worked like 45 years or something. The new system that has been on place since the 80s (there are very few CSRS employees still working, but they do exist) is 30 years and have to be 57 but I believe you can retire at 57 before it's just not fully? But that system pays into social security and also collects it. You get 1% a year for years of service..and that will be your pension check...and that is also a percentage of your "high three" does not have to be your last three but it usually works out that way. There is an exception that if you work till your 62 you get 1.1% a year. The retirement is a moving target cause different eras of workers contribute different percentages each paycheck towards that pension. And I'm not sure if the current new hires have the SS bridge payment, which takes effect for a retiring person who fully retires younger than 62. It basically equals their SS chech at 62 but they get it the day they retire and when they hit 62 it just turns j to their SS check.

[Barnyard]

I retired from federal service under FERS at age 60 with 20 years' service and received full pension plus an additional amount equal to 2/3 of what I would receive from social security at age 62. When I reached 62 the 2/3 disappeared and I started receiving full social security. You could also retire at age 50 with 30 years' service.

My wife retired after 42 years at age 60 under CSRS and received 80% of her pay with no social security. She could have retired at 55 with about 72% of her salary but decided to wait until I retired.

[radioguy41]

There are lots of different ways to retire. I packaged out at 53 with a 2 year full salary. That got me to 55 which made me eligible for company retirement. I took that and worked until 62 as an independent computer support specialist traveling around the country for Fortune 500 companies troubleshooting and updating their systems. At 62 I took SS at the reduced amount. If you calculate it out you will find that the crossover between taking early and late SS is just over age 80 so for me it was a no-brainer, I took the extra 3 years of full retirement at the front end because you don't know when the back end is coming. I wanted to do things while I was still physically able to. The point being, everybody's situation is different but with one constant, you need to plan ahead so you don't get caught with a blindside at the last minute. As the Boy Scouts say,"Be Prepared.".

The only thing that changed for me was my original plan included selling out and buying a small farm in NC but,,,, the grandchildren started coming along and grandma said "I'm not moving to North Carolina. It's too far from the grandkids." Oh well.

Now this really goes without saying since if you didn't already have a hobby you wouldn't be on the forum but one thing I really stress to people is get a hobby, otherwise you will likely get bored very quickly.

[ajhbike]

Putting the financial stuff aside....I agree about having a focus/hobby. I don't know how many times I have heard guys on the cusp say that they won't retire...."what would I do with myself all day?" How sad. I am busier now than I have ever been and happy as a pig knee deep in $%*&.

[radioguy41]

Yeah, I sometimes think I'm busier now than when I was working.

[v w]

I needed heart surgery 3 months before I turned 62. Since I was going to be off three months anyway and with who knew what the future held for a bad heart I decided to grab while I could. Never returned to full time but did work part time from age 62 to 67. Wife was employed full time so the problem of health insurance wasn't a problem. Worked too much one year and made some of my SS money taxable to feds. Nothing to state of Michigan. All SS is exempt. Will be 83 in days so maybe I could have more if I had waited. Maybe money but getting it while you feel like doing things is more important to me so no regrets! The heart? Last Jan one bypass plugged so cardiologist put a stent into the original artery that 20 years ago was deemed too plugged to work on. Three stents in a row opened 'er up. My 2cents worth? ALWAYS contribute to an employers 401K at least to the match number, use an IRA. Retire as quick as the numbers say it can be done. Vern

[coppersmythe]

Hello all from the deep south of Louisiana...,when asked to describe retirement, I just smile , and say ,. It's 6 Saturdays and a Sunday.....,...,..

[Jackman]

It’s pretty much all been said my understanding is all of us up here in the USA can retire at 62 but you don’t get much and certainly not enough to live well. I’m currently 62 and my job as a truck driver pays considerably mor than a early SS payment or even a full SS retirement so a no brainer (I think) just keep working hopefully to 67 my full retirement age and draw a slightly bigger check. I’ve heard but don’t know that at full retirement age one can draw a SS check continue to work with out a tax penalty . My plan is simple go to 67 and work as long as possible and keep making that money .

Also I’m not up on this part of USA retirement but I’ve heard that at age 65 we all have to register for Medicare and pay a 20% premium which from at least one of my friends is a pretty good deal in his opinion. Anyway 5 years to go until 67 I can’t wait and have heard the grief stories of health and boredom but it is what it is looking forward to a full SS retirement.

[KETCHAM]

Ha.....still work at 63....will always work at something......old tractors,old bikes,,,house...then fun stuff like bonfires ,hunting,,traveling....I collect a pay check ...getting tired of working for the "man" so its coming soon!!!!!!!

[Gary Dotson]

Yesterday, I quietly celebrated 20 years since my last day of employment! I retired at age 55 with 25 years in a good retirement plan. No looking back for me!