Retiring on a Pension | Jill on Money

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  • Опубліковано 12 січ 2025

КОМЕНТАРІ • 135

  • @hsiaolinchiang7178
    @hsiaolinchiang7178 9 місяців тому +26

    This couple is doing a much better job than most people on retirement.

  • @lenilim8851
    @lenilim8851 9 місяців тому +28

    Wow these guys are in great shape - there are so many out here that are broke or at least less fortunate-
    An indexed pension of $5300 a month for life is a sweet option !! Just strive for good health and enjoy life and keep your faith in God! God blessed you all!! ❤️❤️🙏🙏

    • @hppavilionf50
      @hppavilionf50 8 місяців тому

      Per the Pennsylvania State Employees Retirement System, sers.pa.gov/DefinedBenefitPlan-RetiredMembers-COLAS.html , pensions are not indexed for inflation.

  • @rossmacintosh5652
    @rossmacintosh5652 9 місяців тому +8

    Good job Jill & Mark. Your advice to Regina & Dave seemed very reasonable & appropriate. "And Rent!" 😎

  • @velodjk2975
    @velodjk2975 9 місяців тому +14

    Pennsylvania has no state income tax on retirement income. So there is no state income tax on withdrawal's from IRA's, 401k's or pensions. Even the traditional accounts. As a resident, I would find it hard to move to another state that does tax retirement income. Especially if it is more expensive like Dave and Regina are thinking about.

    • @ada-yw1bb
      @ada-yw1bb 8 місяців тому +4

      I hear this a lot but you have to take into account property and other state taxes as well .
      Most states that don't have income tax have higher property and other taxes .

    • @john-o1g9p
      @john-o1g9p 8 місяців тому

      @@ada-yw1bb i am moving from almost 4k prop taxes on 1/3 acre house in colo
      to 100 acre raw land in tn. prop taxes are 419. i can live with that...

    • @skepticalmechanic
      @skepticalmechanic 7 місяців тому

      No state tax in NJ if your income is less than $150,000

  • @rickm8456
    @rickm8456 9 місяців тому +3

    Great video and information. This couple is my wife and I in 10 years. Well, minus the rental property! I have the exact same pension in the same state, and the same 457. BTW, you’ll pay no state or local taxes on the pension if you maintain residence in the state. So, don’t move to a taxing state, or just rent elsewhere for a short time! Also, Medicare becomes primary at age 65. You do have to pay the deductible and with the state benefits you still have to pay the employee contribution. Just some things to keep in mind. Enjoy retirement!

  • @nakendraperry6264
    @nakendraperry6264 8 місяців тому +3

    Great video! Loving this topic.

  • @Instkarma9765
    @Instkarma9765 9 місяців тому +12

    This scenario is just like mine in terms of salary, pension, and expenses. The only thing is that I’m single, 65, no children. I was scheduled to retire from a local government job and i live in California. The housing and food costs today have skyrocketed so i delayed retirement until the end of the year and be closer to the time i take social security. However, my pension will be subject to the Windfall Elimination Tax and automatically they will take $500 off of social security. It sucks. Anyhow..still trying to find the right CPA or tax person, financial planner who i can turn to…

  • @SprintTri58
    @SprintTri58 8 місяців тому +7

    Wow! This couple’s situation is very similar to me and my wife. I retired last year age 56 with pension of $5,600 per month (no COLA). 700K index funds and 401K. 15K in dividends per year. 125K high interest savings and CD’s. Our expenses are around $6,200 per month. Wife works from home for a few more years 60K per year. No debt or mortgage. I do pay $200 a month for $500K life insurance for 30 years which roughly gives her half of my pension. The other option was to take $5,700 pension with same basic payout. So we are essentially saving $300 per month with pension optimization using life insurance.

  • @OurRetireEarlyJourney
    @OurRetireEarlyJourney 9 місяців тому +2

    We are in the process of relocating. It was one of the building blocks in our retirement planning that is enabling us to retire much earlier than expected! We are cutting 7 additional years off working by moving.

  • @oldschoolron8602
    @oldschoolron8602 8 місяців тому +12

    mortgage rates aren't the problem. taxes taxes taxes is the problem.

    • @taffyalusa4642
      @taffyalusa4642 8 місяців тому

      Yes if they spend $600000 on a new home the taxes will be a grand a month.

    • @john-o1g9p
      @john-o1g9p 8 місяців тому

      agreed. paid 234k cash 12 years ago in colo.
      my latest prop bill was almost 4k. retiring to tn. late summer.
      it used to be location, location, location. now it is taxes, taxes, taxes.

  • @RetirementbyDesign26
    @RetirementbyDesign26 9 місяців тому +2

    Great discussion. I always tune into this kind of content because there’s not alot out there that talks about retirement considerations for people with DB pensions.
    I was surprised when he said that he’ll get social security benefits as a retired government employee with 35 years. How does the Windfall Elimination Provision apply in his situation? I, too, will get a DB pension when I retire in March 2026 but I won’t receive any SS benefits. I’ll be 50 years old. I worked in the private industry for 8 years prior.

    • @Liledgy100
      @Liledgy100 9 місяців тому +1

      He probably contributed in his state job. Some states do it that way.

    • @RetirementbyDesign26
      @RetirementbyDesign26 9 місяців тому

      @@Liledgy100 aah ok - thanks!

    • @JenMockensturm-i1v
      @JenMockensturm-i1v Місяць тому

      I will have a MD state pension and social security. We pay into social security in MD. My husband also will have a federal pension and social security.

  • @notinmyUSMC
    @notinmyUSMC 9 місяців тому +6

    I think I would have asked whether the defined benefit payments were fixed or if they adjusted for inflation each year. It seems like this would make a difference in how much income will be needed in the future.

    • @rickm8456
      @rickm8456 9 місяців тому +1

      It’s fixed. I will have the same one.

    • @hppavilionf50
      @hppavilionf50 8 місяців тому

      @@rickm8456 Correct, thank you for being the first person to educate others that pensions in PA do not increase with inflation over time: sers.pa.gov/DefinedBenefitPlan-RetiredMembers-COLAS.html .

    • @DIVISIONINCISION
      @DIVISIONINCISION 8 місяців тому

      You want an annuity that accounts for inflation, not fixed. I'm looking at opening up an annuity soon.

    • @MikeS-7
      @MikeS-7 6 місяців тому +1

      State pension will include a COLA. I stand corrected, PA does not include a COLA. Mine does in my state.

  • @dsnyder649
    @dsnyder649 9 місяців тому +6

    I vote for them to take the maximum pension distribution and just buy a term life insurance policy.

    • @iampicasso1811
      @iampicasso1811 9 місяців тому +6

      I disagree. Taking the second option with the benefit for the wife is the insurance!

    • @DWilliam1
      @DWilliam1 8 місяців тому +2

      Yup. That’s what most retired teachers I know do

    • @ebonywinn50
      @ebonywinn50 8 місяців тому

      @@iampicasso1811I’m back and forth on what they should do. I recently read if the other spouse passes away before the person with the pension, they’ll still only get the amount from the payout plan they signed up for.

    • @youarehere1251
      @youarehere1251 7 місяців тому +2

      Lifetime medical requires receiving monthly pension.

    • @jeffb.4800
      @jeffb.4800 4 місяці тому

      I'd imagine term insurance would be pretty pricey at his age. Plus he could always outlive the policy.

  • @Sheren0133
    @Sheren0133 28 днів тому +2

    Why would Jill not recommend to do a revocable trust ? At a minimum on their properties ? Assuming the properties are joint owned, not an issue when one of them pass away because the surviving spouse will assume the ownership. But when both pass away, it would have to go through probate, right ? A long court process that could take years and significant amount of lawyer’s fees.

  • @dormandavis2767
    @dormandavis2767 7 місяців тому +4

    My pension is 5000 . I haven’t taken ss yet. My school bus job is 2000 monthly. I do have a 401k. 63 years old

    • @steelcastle5616
      @steelcastle5616 2 місяці тому

      Do you need a stick to beat the old ladies (who haven't saved for retirement) off of you?

  • @spgushue
    @spgushue 9 місяців тому +1

    2:44 I mean Jill on Travel would be a great show

  • @Leahmpls
    @Leahmpls 9 місяців тому

    You guys rock!

  • @edwardgh57
    @edwardgh57 8 місяців тому +1

    Really appreciate the real life advice on your show. So they give up a percent of the retirement pension to have a beneficiary . They are young enough to buy a 20~25 year life insurance policy on the pensioner at a monthly premium that easily less than half of the difference between the full pension and reduced pension with a beneficiary. Did this for my wife’s teachers California CalStrs “pension” . Your thoughts ?

  • @jeffb.4800
    @jeffb.4800 4 місяці тому +1

    I hope to be exactly like this man in 20 years. I'm 38 with 15 years of service and making $92,000 a year with $22,000 in a 457 and beginning a Roth IRA now.

    • @maxsmart8954
      @maxsmart8954 Місяць тому

      Get inform d on indexed universal life insurance. You start drawing income for life TAX FREE. 457 will be taxed once you start drawing funds.

  • @miketheyunggod2534
    @miketheyunggod2534 7 місяців тому +3

    Boomer here. Two pensions and Social Security. None of it is taxed.

  • @shirleyjgarland3576
    @shirleyjgarland3576 8 місяців тому

    Thanks

  • @Leahmpls
    @Leahmpls 9 місяців тому +2

    A Challenge for Jill and Mark: How can a non working spouse of disabled veteran with no income, contribute to a ROTH IRA? I do have a brokerage investments (200K(FXAIX/FSKAX/QQQM) brokerage and 55K Roth. My spouse is a 100% disabled veteran, his disability benefit is a non-taxable income. Hope you can talk more about Veterans and Veterans spouses investment options. Any changes from Secure Act 2.0 for veterans? Neither of us are working and living abroad. NO DEBT at all /everything is paid off(house, car etc). Many Thanks. Li (AGES:40/77) BTW, Love the show by the way.

    • @brucefredrickson9677
      @brucefredrickson9677 8 місяців тому

      You don't have "income" but you can always do a Roth IRA conversion to protect some/all of your IRA accounts.

  • @jeffb.4800
    @jeffb.4800 4 місяці тому

    What size of Garmin is that watch? 47mm or 51mm?

  • @ToddM452
    @ToddM452 Місяць тому +1

    Are these people really worried about income, or do they just want confirmation? They are more than set, not to mention SS.

  • @RK-yt3rk
    @RK-yt3rk 8 місяців тому +19

    And I want to ask. At least half of us are post divorce and single. Why is it that these examples are primarily about “couples”? There is the support factor both emotionally and financially. I’m sorry but I think more podcasts like this just are not realistic for a large group of us.

    • @ebonywinn50
      @ebonywinn50 8 місяців тому +5

      I would also like to see something like this for a single person.

    • @edhcb9359
      @edhcb9359 7 місяців тому +7

      I guess there are advantages to sticking things out with your spouse.

    • @skepticalmechanic
      @skepticalmechanic 7 місяців тому +2

      Half? Doubt that…

    • @ebonywinn50
      @ebonywinn50 7 місяців тому +3

      @@edhcb9359 that's true. As long as both spouses respect one another, sticking it out has benefits. But since I'm solo I'd like to see some examples for us as well :).

    • @ebonywinn50
      @ebonywinn50 7 місяців тому

      @@skepticalmechanic in my career field, I tend to see a lot of divorces. Sad indeed.

  • @MikeyDVC
    @MikeyDVC 9 місяців тому +15

    Not enough future pensioners contribute to their 457b deferred comp plans! Good work Dave and Regina. It’s one of the first things I tell new employees. 😂

    • @Toomanydays
      @Toomanydays 9 місяців тому +1

      I thought the $195k was sort of lame. I had $600k in mine after 15 years.

    • @hpTauber
      @hpTauber 9 місяців тому +1

      .....and?

    • @rickm8456
      @rickm8456 9 місяців тому

      @@Toomanydaysyeah but how much is your monthly pension?

    • @ebonywinn50
      @ebonywinn50 8 місяців тому +3

      @@Toomanydayswell congrats to you, but I wouldn’t bash someone else’s amount. It’s much more than most end up with. I would like to know if he pulled some money out of the 457 for the second property. I took 100k out of mine years ago for a second property.

    • @flrbase
      @flrbase 7 місяців тому +2

      My State had a 7% contribution to pension, so it's difficult to max put on 403B when you average 2.5 % yearly COLA and several salary freezes over the years

  • @scottiebumich
    @scottiebumich 9 місяців тому +8

    How does a Mid-50 year old couple making ~$190k/yr not have at least $3M net worth? I mean at $190k you should easily be able to set aside $40k/yr + $20k/ company match (estimate). I really don't understand how one can spend almost all they make?

    • @rossmacintosh5652
      @rossmacintosh5652 9 місяців тому +10

      Many people contributing to defined benefits plans feel they've got their retirement sorted out. Must be nice for them to know they'll receive a healthy, indexed, pension for life. As a result of the security their pension will provide, in their working years they may feel comfortable spending all their take-home on lifestyle. They effectively never experience the 'accumulation stage' that all the rest of us without pensions live through.

    • @satnamjt607
      @satnamjt607 9 місяців тому +11

      Payed off their mortgage first home and bought and finished off rental property

    • @MangoT140
      @MangoT140 8 місяців тому +4

      Kids and college also require a bunch of money.

    • @hppavilionf50
      @hppavilionf50 8 місяців тому +7

      Most public sector employers do not provide a match to 457(b) or 403(b) plans.

    • @hppavilionf50
      @hppavilionf50 8 місяців тому

      @@rossmacintosh5652 Per the Pennsylvania State Employees Retirement System, sers.pa.gov/DefinedBenefitPlan-RetiredMembers-COLAS.html , pensions are not indexed for inflation.

  • @kenfrank2730
    @kenfrank2730 9 місяців тому +4

    Dang, those home prices are dirt cheap. Where I'm at in southern California blue collar, working class homes are $900k to $1 million.

    • @satnamjt607
      @satnamjt607 9 місяців тому

      You guys are another matter out there!

  • @iampicasso1811
    @iampicasso1811 9 місяців тому +5

    Forget about the kids! There fine. Take the 💯% benefit for your wife! No brainer. The rest of your assets go to the kids.

  • @princesskaitlinhazelwood4703
    @princesskaitlinhazelwood4703 9 місяців тому +2

    Cathay Pacific is my favorite airlines. US planes suck.

  • @vernshird711
    @vernshird711 9 місяців тому +1

    We are debt-free DINKs living in MD. I'd love to retire in Amish country (Lancaster or Lititz), but I'm not sure I can convince her. I'm retiring at the end of 2025 and will get an indexed pension from MD gov't. She'll retire in early 2028 or early 2030. She'll get a smaller pension, not indexed. We both have pre-tax savings and each of our SS amounts will be similar.

    • @rickm8456
      @rickm8456 8 місяців тому +1

      I'm in PA. Grew up in MD. No state tax on SS or pension here in PA. Real estate taxes are a little more that you are used to. Overall cost of living probably a little less. Central PA is great - always on the list of the nicest small towns. Lots of places to hike and bike,

    • @WilliamVogt-s9l
      @WilliamVogt-s9l 2 місяці тому

      Death tax in PA is 4.5% of estate. Definitely a reason to move out of PA before you die if you have a high net worth. ​@@rickm8456

  • @ProCoach2373
    @ProCoach2373 Місяць тому

    They should consider term life vs. taking the lower monthly pension amount and the advice on not having a trust is not great. The kids would need to go through probate which is costly and can be lengthy. The responsible thing to do is have a tidy trust.

  • @DWilliam1
    @DWilliam1 8 місяців тому +5

    Retiring next year at 59 after 32 years in education in NYC. Pension is around 8K a month, $900K in a 403b with a guaranteed 7% option, retirement condo paid off. Plus in NYC we paid into SS so I’m looking at $2700 payment at age 62. NY and Florida doesn’t tax the pension or any money I withdraw from the 403b or SS benefits. Most people I know just get a term life for their spouses since they bang you about a $550 deduction for full survivor pension benefits. Oh, and my health insurance is covered for life with just co-payments.

    • @DIVISIONINCISION
      @DIVISIONINCISION 8 місяців тому +1

      The problem. Why would you want to retire in NYC or New York state for that matter? Also, if you moved to Florida, you'd be hit by high home insurance costs, HOA fees, and the rising cost of living. Why would you even buy a condo? A house is where it's at. You own the house. A condo is just an apartment.

    • @DWilliam1
      @DWilliam1 8 місяців тому +2

      @@DIVISIONINCISION I already own a great large Condo in SC. It’s in a gated community, a ton of amenities(pools, tennis, golf, beach cabana, tennis, etc) with a reasonable HOA that includes internet, cable, telephone, infrastructure, maintenance and the aforementioned Amenities. Taxes are super low and the cost of living is also low. I bought it back in 2010 and is now worth 3 times what I paid for it. I’ll keep my rent stabilized apartment in NY and live like a snow bird, and still be able to pay zero state and city taxes on my pension, SS and any 403b withdrawals. I’ve already owned a house and I don’t want the maintenance(fixing the roof, landscaping, driveways, exterior painting, etc no thanks) anymore and besides you never really own the land, so you don’t really own it.

    • @DIVISIONINCISION
      @DIVISIONINCISION 8 місяців тому

      @@DWilliam1 I'm a disabled veteran, so I don't pay any property tax.

    • @Hoog.23
      @Hoog.23 7 місяців тому +1

      Congrats, 32 years Wow! My wife is tier IV 25/55. Just hit 25 years but will hang in 2 more years. I thought only the first $40k of the 403b is tax free in NYS? Also don’t forget you get reimbursed for any Irmaa fees. Hopefully Adam’s doesn’t gut the healthcare.

    • @annjean8709
      @annjean8709 4 місяці тому

      Congratulations 🎉 🎊 👏🏾

  • @JeanP-f7m
    @JeanP-f7m 8 місяців тому +2

    who offers pension nowadays? All corporate America cares about are job cuts & profits....This couple is doing well with pension but is in very small minority, unfortunately. Most workers are trading time for money...to make a living. Money may be a renewable resource for some but time is not for all..so enjoy life while you still have health.....health is wealth as they say.

    • @JenMockensturm-i1v
      @JenMockensturm-i1v Місяць тому

      There are a lot of public sector employees with pensions. You earn less along the way, but have good benefits and a pension.

  • @michaelthomas1916
    @michaelthomas1916 7 місяців тому +2

    It all sounded amazing until the wife brought up taking on a mortgage in a more expensive area. You don't want a nortgage heading into retirement. Bad idea.

  • @stephanemontour3842
    @stephanemontour3842 4 місяці тому +1

    Unnecessary call!! You have enough to retire, that s it ,,, next call..

  • @robertthompson4224
    @robertthompson4224 3 місяці тому

    My pension @ 58 will be amazing. The more OT you work, the bigger it is. They match @ 200%, whatever you put in. Once we pay off house in 5 years, I plan on loading up on dividend producing stocks. I plan on getting my brokerage account up to $400K. My wife’s teacher retirement won’t be that great, plan on using that to buy up stocks, even during retirement. This couple has good problems.

  • @romeygee9866
    @romeygee9866 7 місяців тому

    Is it better to take out the lump sum and save it on hysa or gamble it in a volatile stock
    Market?

  • @Ace-xt8lv
    @Ace-xt8lv 5 днів тому

    These people have it all . Not much tactical strategy needed .

  • @duanerykhus9425
    @duanerykhus9425 7 місяців тому

    Ok great some people have so much how can the average person retire at 62 with $1,000,000 net worth, NO det and live to 100 years old with out running out of money ??? Yes I am worried about this every day !

  • @drmitofit2673
    @drmitofit2673 6 місяців тому

    $300k in a 35 year 401k is better than average savings but not great. He either was too conservative in his funds or under contributed, probably both. I had 10 times that much after 28 years and that's just my 401k not including a big taxable account and my wife's big 401k. My wife and I each retired with generous pensions and very large 401k's and we exercise every day. We don't need survivor's benefits so we are getting maximum pension payments.

  • @drmitofit2673
    @drmitofit2673 6 місяців тому

    Instead of wasting money burning jet fuel traveling to exotic locations, we have a retirement hobby of finding treasures at estate sales and consignment shops. Common to find items we enjoy that are worth 10 times what we paid, and several times bought art objects worth 100 times what we paid. You end up with tangible valuable collectable items you can enjoy every day. With vacations you are throwing money off an expensive cliff.

  • @stand.6008
    @stand.6008 5 місяців тому +1

    This couple makes me sick!! LOL We are no where near in that kind of shape.

  • @dagreatstoney.5869
    @dagreatstoney.5869 8 місяців тому

    Vow well done Yee are in a great place, sadly this scenario is like a fantasy 🙈

  • @fedguy9182
    @fedguy9182 8 місяців тому

    Hopefully their State pension is well funded and the State is fiscally sound. Avoid NYC

  • @youarehere1251
    @youarehere1251 7 місяців тому +1

    Rent out both houses and use the income to rent somewhere you both would like to live.

  • @JenMockensturm-i1v
    @JenMockensturm-i1v Місяць тому

    She needs to be careful about working from another country. That’s not always possible because it can require her employer to pay taxes. Many companies will let you work from anywhere in the US, but overseas can be tricky.

  • @niculinaripa5562
    @niculinaripa5562 9 місяців тому

    Best for my, Good for my pensione , Byutiful, yesss 🚀💯🎯🍀🍀🍀✌️💵♥️🔥👍

  • @timsimmons9995
    @timsimmons9995 22 дні тому

    These people must be in the top 5% of wealth and just called in to brag. Seriously! If they can't figure out if they can retire with $500k in joint assets, healthcare, pension, a rental property, and SS that brings in $10k per month, how did they become so successful in their careers?? What's the point of this conversation other than to call in and say, "hey we're rich."

  • @noveltyrobot
    @noveltyrobot 9 місяців тому +3

    I like them.

  • @CamronWilson-r2b
    @CamronWilson-r2b 9 місяців тому +2

    Best you tuber

  • @seancorrigan5503
    @seancorrigan5503 8 місяців тому +1

    They have a defined pension for life, nuff said our children will pay for their retirement!

    • @edhcb9359
      @edhcb9359 7 місяців тому +2

      Really not how it works. But go ahead and feel that way if you want. 🤷🏻‍♂️

    • @JenMockensturm-i1v
      @JenMockensturm-i1v Місяць тому +2

      Those of us with pensions pay a percentage of our salary and then our school system and or the state or federal government contribute. They hire people to invest the money and then pay it out. It is not paid out like social security is.

  • @mapsandglobespro
    @mapsandglobespro 8 місяців тому +2

    Pensions are a great thing as long as the company has fully funded it. I've seen to many large cities with poorly funded pension funds and guess what? The retirees are left with nothing. I would suggest to roll your pension assets out and into an IRA and at your young ages, start converting more into your Roth accounts. With today's federal deficits going to the moon the tax rates are only going higher!

  • @josephjuno9555
    @josephjuno9555 6 місяців тому +3

    This is totally waste of time? Just Bragging? You are totally set! NEXT CALLER...

  • @map4ca
    @map4ca 4 місяці тому

    Wrong answer. They absolutely need a Trust to avoid dealing with probate in courts.

  • @rondrake3720
    @rondrake3720 6 місяців тому

    Wait a minute. Not all defined pension can keep the promises. You should not bet what you get this year can be maintained.

    • @JenMockensturm-i1v
      @JenMockensturm-i1v Місяць тому

      His pension is a state pension. State and federal pensions are more secure than private companies.

  • @bobb7918
    @bobb7918 7 місяців тому +13

    Need to cut out the small talk. No one cares.

  • @Tom-ql5kv
    @Tom-ql5kv 8 місяців тому +1

    They are behind for their age as far as 401k. But having 2 paid for homes makes up for that. Regina’s entire salary should be invested. Anything left after Roth should be in a s@p 500 mutual fund.

    • @vincemarquez1959
      @vincemarquez1959 8 місяців тому +3

      He has a Pension as his primary income for life. Not a 401k

    • @vincemarquez1959
      @vincemarquez1959 8 місяців тому +3

      Not being rude but his pension will way oversee a 401k plan. He speaks of a 457 plan which is a separate pension on top of his primary pension

    • @ebonywinn50
      @ebonywinn50 8 місяців тому

      @@vincemarquez1959I agree with you. A pension each month for the rest of his life is solid.