Well-spoken Steve. The pension is why I've stayed as long as I have too. Without it I would never have chosen to work a swing shift job for 30 years. There had to be a "payoff" at the end, or I would have found something with more normal hours. Retirement is a marathon, just as working was. I also plan to collect SS later as insurance against old age. When I'm gone momma will still have both the pension and my larger SS amount. That's winning in my eyes. Great video, have a wonderful St. Patricks' day and Easter!
Exactly! I would have moved on also. Retirement is a long term game for sure. We got the early innings covered and SS will be like a relief pitcher in the late innings. A little help and security later on. Hope you both enjoy St. Patrick's and Easter also. Take care. Steve
The beauty of a community like this is it allows us to share information with others who share our journey. Thanks for your work on this channel, Steve.
Glad to do it. Gives me a lot of help and enjoyment also. I always say I get way more from Y'all than you'll ever get from me. People to talk to, lessons to learn and a couple thousand new friends. Thanks and take care. Steve
Sure is. The weather has been just beautiful this week got a lot done. Just a gag t-shirt I had made up to hand out to the guys in my department when I retired. They had a lot of fun with the idea I had a channel for a retirement hobby. Get lots of Carolina Wrens and some Chickadees at the feeder. Take care. Steve
You are a wise man Steve, and looking out for your wife says a lot. Anyone who has a job with a pension should save as if it doesn’t exist, I say that because my mom worked at Sears and retired with one, only to have it turned over to the govt when they went bankrupt, now she draws about 30% of what she should’ve. Thankfully she has other income to cover for her needs, as you do. I have 40 years with a major airline, and when they went bankrupt in 2005 I lost about 60% of my pension as well, thankfully I have enough time to save as much as possible before I retire. I’ll turn 62 this year but plan on working until 65, unless I finally say enough is enough before then……which could be any day now. I hear cow bells in my sleep, one day you can ring it for me!
We have a friend who's sister retired from Sears that happened to. That's exactly the way to look at it. Save like they don't exist just in case you have to do it on your own. Had some fellows at work that didn't save much of anything because they had a pension.They weren't even in the 401k. If anything ever happens it's going to be rough on them. If I'm still on youtube when you retire I'd be honored to ring the bell for you. Take care. Steve
Priceless it truly is. Just doing the best I can with what I got. Same as most. 7:43 Just the way I see SS and the politics of it. Probably totally wrong. Thanks and take care. Steve
Addendum: for most people, unless you have some kind of employer-sponsored health insurance at age 65, you’ll sign up for Medicare, while Part A is free, Part B currently has a premium of around $175/month, plus most people will need to add a prescription plan. This will effectively reduce your projected monthly Social Security payment by around $200/person. Just want to tell everyone to keep this in mind. 😊
I believe I used $550/month for each of us when we were planning for retirement and Medicare. In my scenario I included health insurance in my budget both before Medicare and SS and before both. But your right health insurance does reduce your SS. I appreciate you reminding everybody. Thanks and take care. Steve
Thanks Steve, always down-home honest thoughts. Always retire in January, that way a person leaves with the vacation money and company profit sharing they worked for the previous year, and always make sure you are fully vested in the 401k so you can keep the company matching funds. Thanks Mike from Nebraska.
Never thought about the timing like that. I actually retired the first of Feb. and that was our second fiscal quarter. They did things a little different than most and started their year in November. Vacations went March to March and personal days went by the calendar year. Just odd. Saving at least enough to get the company match and bumping it when you can is the idea. Thanks. Steve
Steve, I'm 37 and saving as much as I can! Thank you for posting these videos. It's nice to get insight from someone that's starting the retirement phase in life!
It's great you are saving but don't forget to enjoy life while you do. I think living a pretty good life before retirement helps when you are retired. We lived a pretty good life before I retired I think. Did pretty much what we wanted, when we wanted. Now that I'm retired there is really not much we want. Saving is great but there is a lot of life to live before retirement. Enjoy the whole ride. Best of luck to you and thanks for watching. Steve
We agree 100% ; in fact, this is exactly our scenario. We retired some time ago and have been living off pension and retirement fund withdrawals only in the meantime. When we are 68, we will begin our Social Security benefits (about 2 years to go). Good program today; thanks!
I figured it was our best option. It allowed me to retire when I was ready and should secure our future pretty good. Glad Y'all are making out O.K. doing similar. Gives me hope it'll work out for us also. Thanks and take care. Steve
That's what it takes for us. Everybody is different so be sure and run your numbers. We can make out great and enjoy life on around $40-45k/yr. after tax. Puts us right in line with what I expect SS to be. But I do have savings and pension so we have back up. Thanks. Steve
Aquarius. It totally fits me. Stubborn, detached, eccentric, sense of fair play and loner/independent. Amazed my wife keeps me around. The shirt was just something I got to pass out to the fellows in my department when I retired. Kind of a gag gift. They had a lot of fun when they found out I had a channel for a retirement hobby. Told them I was a "Creator" and an "Influencer".🤣 Take care. Steve
SS is like a financial insurance policy for us. It helps to insure we don't slip into poverty as we get older. Might not be as well off but at least we'll have some income to help with things. Thanks. Steve
I plan on drawing my social security at 62. I retired at 51 in 2021 and live off 2 pensions. I will start to collect from my investments at 62. Plan is to withdraw every December the gains and don't touch the principal. I could start now with no penalties. Life expectancy is 77. Break even point 80. If I live that long. That will be 3 annuities.
Beautiful setup. Pensions aren't around much anymore but they sure are good to have if you got one. Makes retirement a little more comfortable knowing you've got something besides SS and your investments coming in. Thanks. Steve
There might be for most but not for me. All I wanted in retirement was to live just as good in retirement as before I retired. Objective accomplished. Healthy, happy, content. Family close by, got all we could ever need or want. Do what we want when we want.Eat good and have a roof over our head what more could a person ask for? Don't remember the penny postcard but do remember 8 cent stamp. Take care. Steve
I'm still in my mid working years and I don't factor in SS at all into my retirement calculus. It'll just be a nice bonus for me if it's still around in any form once I get to retirement age. I'm with you, I don't think it'll go away, but it's possible they push the age back farther and farther.
@@b.coxemba6799 The House Republican Study Committee in 2023 put forth a fiscal blueprint that would increase the age to 69, but it hasn't gone to the floor yet. It's still many years yet before I retire so I just don't factor in SS at all for my own calculations because a lot can happen in 20 years.
I did the same for years. Just didn't think it would be here for me. It has changed but still around. Something will have to be done but you just don't know what or how. Maybe they'll change the age or even cut payments but I just don't see it going away. Nobody will touch it till the last minute and then they will catch flak for it big time but it has to be dealt with. Just like you said. Plan the best you can to support yourself and SS will be a bonus. Take care and thanks for watching. Steve
Right on !! Once we looked into our SS, it changed our planning. Retiring in our late 50s and our investments and savings should easily carry us until we turn on the SS income stream. As of March even with stopping work this year, if I turn on my SS at 65 ( 2 years before FRA ), it is estimated to be just over 3K a month. That more than covers all our needs and then some. Then investments become just gravy or fun money. When my wife turns hers on, the need to pull from investments will become almost 0. Even if SS benefits get reduced in the 2030s, it will not impact our life. True about thinking ahead and planning for a single household. Lose that joint STD deduction and that will cause more to be paid in taxes. For that and future RMDs, we plan to pull down on the IRAs in mid 60s and do some ROTH conversions while being in the 1st or 2nd tax bracket. Make sure we don't have too many eggs in the IRAs so as not to leave a tax bomb to a spouse or daughter.
That's the way we see it also. Just building a bridge to SS then things ought to be smooth sailing after. My little pension and 401k helped me retire a little earlier. Live on those till SS then it's just extra fun money or whatever. Transferring to cash or other accounts helps avoid that tax bomb later. Like you the cut in benefits shouldn't effect our lifestyle. Good times. Thanks and take care. Steve
Hey Steve. Once you and Connie are living on your and her SS and your pension(s), your taxes will fall to almost nothing. Even at 72k/yr. Sure won't be 20%. Maybe a little at 10%.😊
That's how it looks on our projections. Never higher than the 15% bracket and at SS below 10% effective throughout. Even when Connie falls into the single bracket. The benefits of being poor.😀 Just got to pay the 20% for another year then I can roll it. Should be smooth sailing after that. Thanks for looking out. Steve
I remember my brother in law telling me how stupid that I was to stay for a pension when a 401k would make you a multi millionaire. Then I remember in 2008 when he screamed that pensions were not fair. You are very fortunate to live on an area that expenses are not as high. Whatever you do, do not forget to sign up for Medicare when you become eligible. If you don't, the penalties are huge and they are lifelong. Another consideration, you may have to make some adjustments after this next election. Biden has already said that he will not extend the middle class portion of the Trump tax cuts and he plans on adding another $2 trillion in taxes. That will deliver a double whammy, more money taken from you and more inflation from Reckless government spending.
Some people just don't like the idea of a pension for whatever reason. I think it would be hard to not like one personally. Hard to beat a monthly check every month for life. I remember dad telling me the same about signing up for Medicare. The taxes are another story. If the cuts do go away it would increase our fed taxes by about $3k/year. Add in any extra they want to add and I'll be looking for work for sure. Virginia is fairly decent for retirees. Stay away from northern Va./DC area and towards the beach and the living is fairly easy. Thanks for the help. Steve
@@retirementcorner Well he didn't like them because he didn't have one. I think that the longest he stayed at a job was 6 years. So he wouldn't have gotten much of a pension.
The pension should be a reliable deposit monthly. I was not aware the required tax withholding increase for a pension. My monthly was reduced starting in January because they withheld a mandatory tax withholding minimum increase. The tax is already withheld from SS. I have one entire pension sent for state taxes. This really has been a lot of my income with Medicare Premium, tax, supplemental insurance. There is no part of my job I miss but the check, I miss that thing. Just some stuff I have been finding that is taking my income down.
I had to set the taxes on my pension or they wouldn't have taken any. They actually stopped a couple times last year and I had to get it straight. My 401k is mandatory 20% fed. and I set the state rate. Don't miss my job a bit either but the check is a different story. Take care. Steve
Just retired four months ago ... this is just my second video I have seen ❤... sounds like you are DUMB LIKE A FOX ... congratulations ... i would guess we a in a similar situation (not sure of your 401k) ... we have similar thoughts in that we want to live off our pensions and 401k's till we can live off just pension and SS and MOST IMPORTANTLY we care most that our spouse is taken care of ... you have my deep admiration ... wishing you and your lovely bride THE BEST ...
Just seems intuitive to me. We don't know everything but try to do the best we can with what we have. Taking care of the baby is important to me even in retirement. Me doing a little something today can have a big impact on her later on. We're doing the same as you. 401k & pension till SS then SS & pension should cover things. Anything left in 401k plus ira, cash and brokerage should be a bonus. Works in theory we'll see. Take care. Steve
Kind of how I see it also. Did the same with my pension. When I die she will still get 100% of it. Between the pension, SS and any we have in savings and investments she should make out pretty good.Take care. Steve
There is always somebody that hates everything. They think they can do better on their own. They might could but Steve couldn't so I love mine. Thanks and take care. Steve
I have to worry about my wife too, her mom is 91. I'm looking at working til 69 and taking my social security at 67 then she can take her full spousal benefit at 67 when I retire, should be about 5500 a month combined plus another 2500 pensions, and will still have a decent nest egg to draw from. My job is easy, zero stress, pays very well and has fantastic benefits.
Sounds like a pretty good gig you got. Stay as long as you can or want. Retirement has no time line. With SS, pension and investments retirement should be smooth sailing. My wife's family history ain't too good. Both her parents died before we got married decades ago. Women generally out live men so it's just a safety net I hope to have for her if needed. Take care. Steve
If your spouse has to rely on you for her SS check, then you have to consider what happens if you die. Those who take at 62 will forever cause your spouse to live with a low check and close to poverty. This happened to both our mothers. Husbands took at 62, everybody lived to at least 85, both moms alive at 88. Both living on about $2100 per month. No other income, no pensions. If they had waited till 65 or 66 they would have had a lot more money. They lost much money by taking early. They even all worked part time for a while to try and make ends meet. In the end us kids have had to help out our moms, which we did without hesitation, but it would not have been necessary with some better planning. My wife took at 63, as she had her own work record. I’m planning on waiting till 70, I can change my mind if necessary, but every year that check gets bigger and the goal is to have a large survivor check(and just a good inflation protected income stream). We will be able to just live off of SS once I hit 70, but we also have some other savings to get us there and after 70, ALL our extra money will be for fun stuff! I like the common sense approach!
My thoughts exactly. That's how it should work for us also. SS + pension should cover us or her. The extra we have we can use for whatever. A little planning today can be a big benefit for her later. Thanks. Steve
No neither one has COLA. The $1k I get now will be the same $1k I'll get at 95. I'm counting on the COLA from SS and the saving and investments I have to make up the difference. That's the plan anyway. We'll see how things shake out. Take care. Steve
I knew I would never work for the same company long enough to get a pension. So instead I purchased whole life insurance which I've been paying into since I was about 27 years old and I can use that as a tax-free "pension income" at retirement should I choose to (up into the amount that I paid in as premiums and following that I pay tax only only on the growth) plus my heirs get my death benefit (potentially reduced by my withdrawals, but that's not a given).
There are little ways to setup your own pension and it looks like you found one that works for you. Some kind of "guaranteed" check makes retirement a little easier on us. Just comforting to know. Thanks. Steve
Quick and dirty but I can tell right off if I can afford something or not. Helps keep me from getting in over my head. Been there and don't want to go back. Take care. Steve
I love my pension as a retired teacher. We are not guaranteed a COLA. But, I am thankful for the amount that I get each month for the rest of my life and my husband’s life. I took a little less each month and he’s paying my health insurance. I didn’t want him to be in need if I die first. We have always both worked full time for our living. Later this year I will turn 62 and will begin to draw SS in order to pay some of my health insurance in the year 2025. We own our home and have little debt that we could pay off today. We live frugal and we are just so happy that we can both be retired. Hubby turns 65 in May and picks up Medicare. So many are not as fortunate as I have been to have a pension. Hubby’s IRA’s will assist down the road. I just feel so blessed. But it took hard work. We got married young, lived on campus as college students in the married student apartments at $175 a month which included utilities. We were so broke. 😳 Love your videos. Happy weekend Steve!
Fantastic comment! I don't get COLA on my pension but every little bit helps. Did the same for my pension, took a little less but my wife gets 100% when I die. Pensions are a great benefit a lot of people don't have. Like Y'all and most "Average Steve's" . We were young, newly married and broke. After decades of work, struggles, trials and troubles we're enjoying retirement together and feel so blessed to be able to. Thanks and take care. Steve
There are little ways to build your own and the one you built sounds great. Good for you and you'll be glad you did later when you retire. Take care. Steve
🤘🏻SS will never go anywhere or be cut …. It would cripple the poor and be less money in the economy… They’ll just raise the tax , like they always have before … and maybe the FRA age to 68
I kind of figure that's the way it's headed. They'll change it from time to time but it'll be around. Raising the age seems like the way it's headed for now. Nobody wants to fool with it. The third rail of politics. Sure way to not get re-elected. Thanks. Steve
Somebody always hates something I guess. They tend to think they could do better on their own. Well they might could but Steve couldn't so I love mine even as small as it is. Hard to beat a steady check every month for life. Y'all are going to love it. You prepared the best you could and have some idea of what you want after. Shouldn't be that bad of a transition especially since your husband has been on leave for awhile. Almost like a test drive for you both. Still looking at N.C. after? Great State. Got lots of family and friends there and we've been all over the state on Vacation. From Nags Head to Asheville. Take care. Steve
Well-spoken Steve. The pension is why I've stayed as long as I have too. Without it I would never have chosen to work a swing shift job for 30 years. There had to be a "payoff" at the end, or I would have found something with more normal hours. Retirement is a marathon, just as working was. I also plan to collect SS later as insurance against old age. When I'm gone momma will still have both the pension and my larger SS amount. That's winning in my eyes. Great video, have a wonderful St. Patricks' day and Easter!
Exactly! I would have moved on also. Retirement is a long term game for sure. We got the early innings covered and SS will be like a relief pitcher in the late innings. A little help and security later on. Hope you both enjoy St. Patrick's and Easter also. Take care. Steve
The beauty of a community like this is it allows us to share information with others who share our journey. Thanks for your work on this channel, Steve.
Glad to do it. Gives me a lot of help and enjoyment also. I always say I get way more from Y'all than you'll ever get from me. People to talk to, lessons to learn and a couple thousand new friends. Thanks and take care. Steve
Nice T-shirt and a Carolina Wren chirping in the background. It's great to be outside!
Sure is. The weather has been just beautiful this week got a lot done. Just a gag t-shirt I had made up to hand out to the guys in my department when I retired. They had a lot of fun with the idea I had a channel for a retirement hobby. Get lots of Carolina Wrens and some Chickadees at the feeder. Take care. Steve
You are a wise man Steve, and looking out for your wife says a lot. Anyone who has a job with a pension should save as if it doesn’t exist, I say that because my mom worked at Sears and retired with one, only to have it turned over to the govt when they went bankrupt, now she draws about 30% of what she should’ve. Thankfully she has other income to cover for her needs, as you do. I have 40 years with a major airline, and when they went bankrupt in 2005 I lost about 60% of my pension as well, thankfully I have enough time to save as much as possible before I retire. I’ll turn 62 this year but plan on working until 65, unless I finally say enough is enough before then……which could be any day now. I hear cow bells in my sleep, one day you can ring it for me!
We have a friend who's sister retired from Sears that happened to. That's exactly the way to look at it. Save like they don't exist just in case you have to do it on your own. Had some fellows at work that didn't save much of anything because they had a pension.They weren't even in the 401k. If anything ever happens it's going to be rough on them. If I'm still on youtube when you retire I'd be honored to ring the bell for you. Take care. Steve
Well said. Meeting your monthly expenses in retirement , being able tp provide for your spouse and having a cushion for emergencies is priceless. 7:43
Priceless it truly is. Just doing the best I can with what I got. Same as most. 7:43 Just the way I see SS and the politics of it. Probably totally wrong. Thanks and take care. Steve
Addendum: for most people, unless you have some kind of employer-sponsored health insurance at age 65, you’ll sign up for Medicare, while Part A is free, Part B currently has a premium of around $175/month, plus most people will need to add a prescription plan. This will effectively reduce your projected monthly Social Security payment by around $200/person. Just want to tell everyone to keep this in mind. 😊
I believe I used $550/month for each of us when we were planning for retirement and Medicare. In my scenario I included health insurance in my budget both before Medicare and SS and before both. But your right health insurance does reduce your SS. I appreciate you reminding everybody. Thanks and take care. Steve
Good ole common sense! Love your videos Steve
Just trying to work with what we got. So far so good. Take care. Steve
Thanks Steve, always down-home honest thoughts. Always retire in January, that way a person leaves with the vacation money and company profit sharing they worked for the previous year, and always make sure you are fully vested in the 401k so you can keep the company matching funds. Thanks Mike from Nebraska.
Never thought about the timing like that. I actually retired the first of Feb. and that was our second fiscal quarter. They did things a little different than most and started their year in November. Vacations went March to March and personal days went by the calendar year. Just odd. Saving at least enough to get the company match and bumping it when you can is the idea. Thanks. Steve
Steve, I'm 37 and saving as much as I can! Thank you for posting these videos. It's nice to get insight from someone that's starting the retirement phase in life!
It's great you are saving but don't forget to enjoy life while you do. I think living a pretty good life before retirement helps when you are retired. We lived a pretty good life before I retired I think. Did pretty much what we wanted, when we wanted. Now that I'm retired there is really not much we want. Saving is great but there is a lot of life to live before retirement. Enjoy the whole ride. Best of luck to you and thanks for watching. Steve
We agree 100% ; in fact, this is exactly our scenario. We retired some time ago and have been living off pension and retirement fund withdrawals only in the meantime. When we are 68, we will begin our Social Security benefits (about 2 years to go). Good program today; thanks!
I figured it was our best option. It allowed me to retire when I was ready and should secure our future pretty good. Glad Y'all are making out O.K. doing similar. Gives me hope it'll work out for us also. Thanks and take care. Steve
I have a pension too waiting to take SS once my husband retires - 4 more years. Thanks for the video
Mine ain't much but every dollar helps. A little extra to go along with SS and retirement should be smooth sailing financially. Take care. Steve
Best estimate I have seen on how much it takes to live in retirement.
That's what it takes for us. Everybody is different so be sure and run your numbers. We can make out great and enjoy life on around $40-45k/yr. after tax. Puts us right in line with what I expect SS to be. But I do have savings and pension so we have back up. Thanks. Steve
I see that a lot of viewers enjoy your musings. Good luck in your retirement choices. 👍🏽I am moving on.👋🏼
That's cool boss. Glad you stopped by. Take care and thanks for watching. Steve
My birthday is in January too! You a Capricorn? Great video and good color choice on the shirt! Buzz
Aquarius. It totally fits me. Stubborn, detached, eccentric, sense of fair play and loner/independent. Amazed my wife keeps me around. The shirt was just something I got to pass out to the fellows in my department when I retired. Kind of a gag gift. They had a lot of fun when they found out I had a channel for a retirement hobby. Told them I was a "Creator" and an "Influencer".🤣 Take care. Steve
Spot on Steve. I could care less about the break even.
SS is like a financial insurance policy for us. It helps to insure we don't slip into poverty as we get older. Might not be as well off but at least we'll have some income to help with things. Thanks. Steve
I plan on drawing my social security at 62. I retired at 51 in 2021 and live off 2 pensions. I will start to collect from my investments at 62. Plan is to withdraw every December the gains and don't touch the principal. I could start now with no penalties. Life expectancy is 77. Break even point 80. If I live that long. That will be 3 annuities.
Beautiful setup. Pensions aren't around much anymore but they sure are good to have if you got one. Makes retirement a little more comfortable knowing you've got something besides SS and your investments coming in. Thanks. Steve
There is so much more to retiring than getting by now. Do you remember the penny postcard?
There might be for most but not for me. All I wanted in retirement was to live just as good in retirement as before I retired. Objective accomplished. Healthy, happy, content. Family close by, got all we could ever need or want. Do what we want when we want.Eat good and have a roof over our head what more could a person ask for? Don't remember the penny postcard but do remember 8 cent stamp. Take care. Steve
I'm still in my mid working years and I don't factor in SS at all into my retirement calculus. It'll just be a nice bonus for me if it's still around in any form once I get to retirement age. I'm with you, I don't think it'll go away, but it's possible they push the age back farther and farther.
The only talking about cutting SS is Trump
@@b.coxemba6799He came out today and said no in case you missed it.
@@b.coxemba6799 The House Republican Study Committee in 2023 put forth a fiscal blueprint that would increase the age to 69, but it hasn't gone to the floor yet. It's still many years yet before I retire so I just don't factor in SS at all for my own calculations because a lot can happen in 20 years.
@@b.coxemba6799🤡🤡🤡
I did the same for years. Just didn't think it would be here for me. It has changed but still around. Something will have to be done but you just don't know what or how. Maybe they'll change the age or even cut payments but I just don't see it going away. Nobody will touch it till the last minute and then they will catch flak for it big time but it has to be dealt with. Just like you said. Plan the best you can to support yourself and SS will be a bonus. Take care and thanks for watching. Steve
Right on !! Once we looked into our SS, it changed our planning. Retiring in our late 50s and our investments and savings should easily carry us until we turn on the SS income stream. As of March even with stopping work this year, if I turn on my SS at 65 ( 2 years before FRA ), it is estimated to be just over 3K a month. That more than covers all our needs and then some. Then investments become just gravy or fun money. When my wife turns hers on, the need to pull from investments will become almost 0. Even if SS benefits get reduced in the 2030s, it will not impact our life. True about thinking ahead and planning for a single household. Lose that joint STD deduction and that will cause more to be paid in taxes. For that and future RMDs, we plan to pull down on the IRAs in mid 60s and do some ROTH conversions while being in the 1st or 2nd tax bracket. Make sure we don't have too many eggs in the IRAs so as not to leave a tax bomb to a spouse or daughter.
That's the way we see it also. Just building a bridge to SS then things ought to be smooth sailing after. My little pension and 401k helped me retire a little earlier. Live on those till SS then it's just extra fun money or whatever. Transferring to cash or other accounts helps avoid that tax bomb later. Like you the cut in benefits shouldn't effect our lifestyle. Good times. Thanks and take care. Steve
Hey Steve. Once you and Connie are living on your and her SS and your pension(s), your taxes will fall to almost nothing. Even at 72k/yr. Sure won't be 20%. Maybe a little at 10%.😊
That's how it looks on our projections. Never higher than the 15% bracket and at SS below 10% effective throughout. Even when Connie falls into the single bracket. The benefits of being poor.😀 Just got to pay the 20% for another year then I can roll it. Should be smooth sailing after that. Thanks for looking out. Steve
I remember my brother in law telling me how stupid that I was to stay for a pension when a 401k would make you a multi millionaire. Then I remember in 2008 when he screamed that pensions were not fair. You are very fortunate to live on an area that expenses are not as high. Whatever you do, do not forget to sign up for Medicare when you become eligible. If you don't, the penalties are huge and they are lifelong.
Another consideration, you may have to make some adjustments after this next election. Biden has already said that he will not extend the middle class portion of the Trump tax cuts and he plans on adding another $2 trillion in taxes. That will deliver a double whammy, more money taken from you and more inflation from Reckless government spending.
Some people just don't like the idea of a pension for whatever reason. I think it would be hard to not like one personally. Hard to beat a monthly check every month for life. I remember dad telling me the same about signing up for Medicare. The taxes are another story. If the cuts do go away it would increase our fed taxes by about $3k/year. Add in any extra they want to add and I'll be looking for work for sure. Virginia is fairly decent for retirees. Stay away from northern Va./DC area and towards the beach and the living is fairly easy. Thanks for the help. Steve
@@retirementcorner Well he didn't like them because he didn't have one. I think that the longest he stayed at a job was 6 years. So he wouldn't have gotten much of a pension.
Opposite on the Biden taxes.
@@johnnyretires Sorry my friend, Biden has said that he won't extend them. Of course he doesn't remember what he had for breakfast either.
@@Dodgerblue7381-ey3ql wow send that info to me. I couldn’t find anything about that at the nonpartisan Tax Policy Center website.
The pension should be a reliable deposit monthly. I was not aware the required tax withholding increase for a pension. My monthly was reduced starting in January because they withheld a mandatory tax withholding minimum increase. The tax is already withheld from SS. I have one entire pension sent for state taxes. This really has been a lot of my income with Medicare Premium, tax, supplemental insurance. There is no part of my job I miss but the check, I miss that thing. Just some stuff I have been finding that is taking my income down.
I had to set the taxes on my pension or they wouldn't have taken any. They actually stopped a couple times last year and I had to get it straight. My 401k is mandatory 20% fed. and I set the state rate. Don't miss my job a bit either but the check is a different story. Take care. Steve
Just retired four months ago ... this is just my second video I have seen ❤... sounds like you are DUMB LIKE A FOX ... congratulations ... i would guess we a in a similar situation (not sure of your 401k) ... we have similar thoughts in that we want to live off our pensions and 401k's till we can live off just pension and SS and MOST IMPORTANTLY we care most that our spouse is taken care of ... you have my deep admiration ... wishing you and your lovely bride THE BEST ...
Just seems intuitive to me. We don't know everything but try to do the best we can with what we have. Taking care of the baby is important to me even in retirement. Me doing a little something today can have a big impact on her later on. We're doing the same as you. 401k & pension till SS then SS & pension should cover things. Anything left in 401k plus ira, cash and brokerage should be a bonus. Works in theory we'll see. Take care. Steve
Wise decision holding out till 68 considering your wife (Baby) will also receive a larger check. Time fly's when u are retired.
Kind of how I see it also. Did the same with my pension. When I die she will still get 100% of it. Between the pension, SS and any we have in savings and investments she should make out pretty good.Take care. Steve
Who the hell can hate a pension??
There is always somebody that hates everything. They think they can do better on their own. They might could but Steve couldn't so I love mine. Thanks and take care. Steve
I have to worry about my wife too, her mom is 91. I'm looking at working til 69 and taking my social security at 67 then she can take her full spousal benefit at 67 when I retire, should be about 5500 a month combined plus another 2500 pensions, and will still have a decent nest egg to draw from. My job is easy, zero stress, pays very well and has fantastic benefits.
Sounds like a pretty good gig you got. Stay as long as you can or want. Retirement has no time line. With SS, pension and investments retirement should be smooth sailing. My wife's family history ain't too good. Both her parents died before we got married decades ago. Women generally out live men so it's just a safety net I hope to have for her if needed. Take care. Steve
@@retirementcorner I just ran all the numbers from 63 to 69, now I have a very good idea whenever I want to pull the pin 🤔.
If your spouse has to rely on you for her SS check, then you have to consider what happens if you die. Those who take at 62 will forever cause your spouse to live with a low check and close to poverty. This happened to both our mothers. Husbands took at 62, everybody lived to at least 85, both moms alive at 88. Both living on about $2100 per month. No other income, no pensions. If they had waited till 65 or 66 they would have had a lot more money. They lost much money by taking early. They even all worked part time for a while to try and make ends meet. In the end us kids have had to help out our moms, which we did without hesitation, but it would not have been necessary with some better planning.
My wife took at 63, as she had her own work record. I’m planning on waiting till 70, I can change my mind if necessary, but every year that check gets bigger and the goal is to have a large survivor check(and just a good inflation protected income stream). We will be able to just live off of SS once I hit 70, but we also have some other savings to get us there and after 70, ALL our extra money will be for fun stuff!
I like the common sense approach!
My thoughts exactly. That's how it should work for us also. SS + pension should cover us or her. The extra we have we can use for whatever. A little planning today can be a big benefit for her later. Thanks. Steve
Thankful my pension is COLA-adjusted annually. The same with yours?
No neither one has COLA. The $1k I get now will be the same $1k I'll get at 95. I'm counting on the COLA from SS and the saving and investments I have to make up the difference. That's the plan anyway. We'll see how things shake out. Take care. Steve
@@retirementcorner Living a little below your means solves inflation.
I knew I would never work for the same company long enough to get a pension. So instead I purchased whole life insurance which I've been paying into since I was about 27 years old and I can use that as a tax-free "pension income" at retirement should I choose to (up into the amount that I paid in as premiums and following that I pay tax only only on the growth) plus my heirs get my death benefit (potentially reduced by my withdrawals, but that's not a given).
There are little ways to setup your own pension and it looks like you found one that works for you. Some kind of "guaranteed" check makes retirement a little easier on us. Just comforting to know. Thanks. Steve
🤣🙂 Nice, we have pension too Steve....
It ain't much after taxes but it does cover my health insurance. Every dollar helps. Thanks. Steve
Excellent video…..Steve math is good math
Dennis
Quick and dirty but I can tell right off if I can afford something or not. Helps keep me from getting in over my head. Been there and don't want to go back. Take care. Steve
I love my pension as a retired teacher. We are not guaranteed a COLA. But, I am thankful for the amount that I get each month for the rest of my life and my husband’s life. I took a little less each month and he’s paying my health insurance. I didn’t want him to be in need if I die first. We have always both worked full time for our living. Later this year I will turn 62 and will begin to draw SS in order to pay some of my health insurance in the year 2025.
We own our home and have little debt that we could pay off today. We live frugal and we are just so happy that we can both be retired. Hubby turns 65 in May and picks up Medicare.
So many are not as fortunate as I have been to have a pension. Hubby’s IRA’s will assist down the road. I just feel so blessed. But it took hard work. We got married young, lived on campus as college students in the married student apartments at $175 a month which included utilities. We were so broke. 😳
Love your videos. Happy weekend Steve!
Fantastic comment! I don't get COLA on my pension but every little bit helps. Did the same for my pension, took a little less but my wife gets 100% when I die. Pensions are a great benefit a lot of people don't have. Like Y'all and most "Average Steve's" . We were young, newly married and broke. After decades of work, struggles, trials and troubles we're enjoying retirement together and feel so blessed to be able to. Thanks and take care. Steve
I’m buying my own pension with Ira money $250,000 will pay $2k/month starting at 67
There are little ways to build your own and the one you built sounds great. Good for you and you'll be glad you did later when you retire. Take care. Steve
🤘🏻SS will never go anywhere or be cut …. It would cripple the poor and be less money in the economy… They’ll just raise the tax , like they always have before … and maybe the FRA age to 68
I kind of figure that's the way it's headed. They'll change it from time to time but it'll be around. Raising the age seems like the way it's headed for now. Nobody wants to fool with it. The third rail of politics. Sure way to not get re-elected. Thanks. Steve
Why would you not enjoy having a pension? Hope we enjoy our retirement as much as you do !
Somebody always hates something I guess. They tend to think they could do better on their own. Well they might could but Steve couldn't so I love mine even as small as it is. Hard to beat a steady check every month for life. Y'all are going to love it. You prepared the best you could and have some idea of what you want after. Shouldn't be that bad of a transition especially since your husband has been on leave for awhile. Almost like a test drive for you both. Still looking at N.C. after? Great State. Got lots of family and friends there and we've been all over the state on Vacation. From Nags Head to Asheville. Take care. Steve
@@retirementcorner Chattanooga area TN