h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

Union sent me a mail the other day - in large friendly letters - inviting me to a meeting where my options regarding early or late retirement would be explained to me

Now if only I could remember where and when...

We had a leaflet in our letterbox last year! with events for the 50+ people. I wasn't best pleased.

I do know how you feel. It seemed natural enough somehow to collect a small military pension at only 38 years old.

But when the most recent company pension kicked in, I felt weird ... Only 52 and twice pensioned now? Neither
amount to much, but I'd rather collect from what my labours and wages paid into then let them ferment in some
investors pockets. (Mind, the mere existence of the 2nd one ensures lifetime medical, hospital and drug-plan
benefits that I could never afford out of pocket)

I can't remember how much longer you have to work for Pierce, is there much difference between these two dates?

My youngest sister keeps hearing that her planned date for official retirement is put forward every so often as the economy alters its forecast for the amount of people collecting pensions v those younger ones in work.

We have a load of schemes and methods of pensions here. The national one that is the only really measureable one is based on
contributions from wages. It is still at full-measure at 65, and collectible at 60. The reductions for early collection have changed
in recent years, from maximum-rate-less-30% to maximum-rate-less-37%. Because my body has taken a lot of beating in the
working years, I will still opt for that one, even if severely lessened. Manual labours need a tool, a working body. Mine is seizing and stiffening

On the other front, the little plan that I paid into with my most recent company. There were 12.some years of contributions. If I
were 62 (minimum under this very generous plan) I would be eligible for $710-Cdn per month for life. Stepping in at 52, the
absolute minimum measure by minutes, it was reduced (based on the maths and sciences of actuarials) by 59.6%. and so for the
remainder of my life (and my bride's) there will be a deposit of $288.67 each and every month

I older men...

You been asked for your bus pass or helped across the road yet. I didn't want to cross the road.

A little restaurant in a shopping centre advertises a discount "For 55 nor better"

I have advised them that I probably feel and look better than I will at 55 ... They don't buy that justification. Imagine that.

...

"55 OR better"

(not a 'nor')

Is there anything wrong with your state of mind these days, Pierce?

There is perhaps the problem, his mind is in a state. Perhaps he should move it into a province?

Pension plans are nightmares

One of the best attended meeting my Union had during the last decade was when one of the guys from the Central Union came and explained the pension system.

Basically it's simple - start to work full time as a manual labourer at 16, stay there and work until you're 65 and collect a decent pension. But then there are the rest of us... children, schooling, part time work. multiple employers... and then it's very tricky to figure out if you're going have enough for kibble and your own bacon after retirement.

At least one of my hatchlings makes a good living and he recently bought a house. Maybe I shall opt for a space there when the day will come.

Oh don't worry everyone, I keep getting leaflets through the door addressed to ma about my imminent retirement ... and I'm only nearly 34!! Being reminded of me retirement only serves to remind me that I've got at least another 30odd years to go!! Lxx

Kes is currently deep in paperwork trying to figure out his pension plan. I encourage him with

I'm only nearly 34, working backwards. My pension is easy to work out; I dropped out of school aged 17 then did correspondence courses after work, going to university full time at age 25.

You don't get pension credits unless you advance to university straight from school.

So I won't get any pension and that is one less thing to worry about.

So just have another dinkies

Advice from an old wreck who's got the tee shirt.
Listen carefully to and act wisely on any information or advice regarding your pension. Make sure that you fully understand and keep a watchful eye on the conditions that will apply when the time comes.

I have to fully agree with the last post, it's really important to make sure you have the best options for retirement. Nothing could be worse than having to scrimp and save in old age.

Ancient Brit and Mistadrong are right. What happens, though, is that there are many (in my country as well as others) who find themselves working for employers who don't offer retirement benefits. The U.S. allows you to start IRA's (Individual Retirement Accounts) or Keough plans depending on your work status, but for many years the annual limit on contributions has been $2,000. So, if you make the maximum
contribution to your IRA for 40 years, you will have invested a total of $80,000. If you invested the money wisely, or if you were lucky in your choice on investment vehicles, you may have a good retirement. If you invested badly or had bad luck, the heaven help you!

I've had letters in the post advertising over the 50 pension plans and insurance schemes and I have been getting them for the past three years, even though I am 48 years of age.

Getting back to the $80,000 figure from my last post, I'd like to illustrate how meager the results might be.

For instance, if you got an annual return of 7% on your investments, your $80,000 would have grown to a little over $300,000 over the forty years you invested. If you can live on, say, $30,000 per year, then you have enough money for ten years of retirement. What are you going to do after that, though, assuming that you live into your late 70s and/or beyond?

I'm guessing that some people would annuitize the money -- i.e. hand the $300,000 over to an annuity company in exchange for a regular payout over the rest of your natural life. I bet you won't be able to get a yearly payout of $30,000 from them. Okay, let's say that you can live on what they can pay you. It won't be a life of luxury, but neither will you be living under a bridge. What about inflation, though? What about rising property taxes if you happen to own a house or condo?

And let me emphasize that the number of people who systematically pay into their retirement accounts for the full 40 years is not likely to be very large. When times are tough, and people are unemployed, they don't have any extra money to add to the accounts, nor would it be legal to do so unless they had earned at least $2,000 dollars each year.

Medical science has helped large numbers of people stay healthy enough to live into their seventies and beyond. Now the chickens have started coming home to roost: the older you are in the U.S., the more likely that you have filed (or will ultimately file) for bankruptcy. What a scary scenario! It scares me more than the federal deficit, or terrorism, or the AIDS crisis.