Countdown to retirement

[kymom99]

Well that stinks! Especially not being able to get survivor’s benefits from a spouse.

There are local groups working tirelessly to overturn them. We aren’t the only state affected.

 

[MillauFr]

In Kentucky we operate under the WEP/GPO. Teachers do not pay into SS but we contribute 13-14% into our pension system. Our pension is nice, but if we contribute to SS through other jobs, we don’t see any of the money. The only way you can draw some of it is if you have 30 years of “significant” earnings paid into SS. The other thing is, we cannot draw our spouse’s SS if they predecease us.

You only need 40 quarters of earnings paid into social security to claim a benefit. Sure it is smaller but you still get something.

 

[AussieFan8]

In Kentucky we operate under the WEP/GPO. Teachers do not pay into SS but we contribute 13-14% into our pension system. Our pension is nice, but if we contribute to SS through other jobs, we don’t see any of the money. The only way you can draw some of it is if you have 30 years of “significant” earnings paid into SS. The other thing is, we cannot draw our spouse’s SS if they predecease us.

That's interesting. In my state, in this situation (which I am in), you do still get some Social Security benefits, but they are reduced. And I believe you have to have 10 years in Social Security to collect.

 

[tvguy]

My wife worked for a suburban city near Seattle and didn't pay into Social Security. They put the money into a 401k type plan instead. When she retired at 53 after 28 years it had $700k. It was very lucrative. She also will still get social security too as she got 40 quarters of payments into the system from previous other jobs. Not a bad deal.

It can be lucrative with CalSTRS too, IF you work enough years. I have two retired teachers on my street. One moved to California and lost all her benefits with her previous district. She put in 16 years and retired at age 65 and gets a pension of $2,800 a month but no social security. That's more than my Social Security, and more than my $28 a month pension with 16 years with a private sector company.
Where it becomes lucrative is once you hit 30 years. Another neighbor retired as a teacher at age 60 with 37 years in the same District as a teacher. His pension is $8,300 a month, more than he made when he retired 12 years ago, and due to the CalSTRS making good investments, more than the job pays today.

 

[kymom99]

You only need 40 quarters of earnings paid into social security to claim a benefit. Sure it is smaller but you still get something.

Its very greatly reduced. And cannot collect spouses under any circumstances.

 

[kymom99]

That's interesting. In my state, in this situation (which I am in), you do still get some Social Security benefits, but they are reduced. And I believe you have to have 10 years in Social Security to collect.

Some get a couple hundred dollars minus taxes. Every case is different.

 

[CGB]

There are local groups working tirelessly to overturn them. We aren’t the only state affected.

There's actually a lot of headway being made regarding the Social Security Fairness Act. Just last week, a petition reached the number of votes needed to force a vote in the House of Representatives. There's a chance they'll approve it, possibly this week. The bill already has 62 cosponsors in the Senate. So, there's a good possibility the Windfall Elimination Provision and the Government Pension Offset could be reversed. I'm one of those teachers it would affect. I have my 10 years outside of teaching (including 8 years active-duty military) to qualify for social security.

For more info: https://www.cnbc.com/2024/09/19/bil...rity-gpo-wep-rules-gets-closer-to-a-vote.html

 

[kymom99]

There's actually a lot of headway being made regarding the Social Security Fairness Act. Just last week, a petition reached the number of votes needed to force a vote in the House of Representatives. There's a chance they'll approve it, possibly this week. The bill already has 62 cosponsors in the Senate. So, there's a good possibility the Windfall Elimination Provision and the Government Pension Offset could be reversed. I'm one of those teachers it would affect. I have my 10 years outside of teaching (including 8 years active-duty military) to qualify for social security.

For more info: https://www.cnbc.com/2024/09/19/bil...rity-gpo-wep-rules-gets-closer-to-a-vote.html

Yes this is the closest we have ever gotten. For me, it’s really the spousal benefits, but for a lot of people, such as you, there is so much to lose if it’s not repealed.

 

[texaslover]

There's actually a lot of headway being made regarding the Social Security Fairness Act. Just last week, a petition reached the number of votes needed to force a vote in the House of Representatives. There's a chance they'll approve it, possibly this week. The bill already has 62 cosponsors in the Senate. So, there's a good possibility the Windfall Elimination Provision and the Government Pension Offset could be reversed. I'm one of those teachers it would affect. I have my 10 years outside of teaching (including 8 years active-duty military) to qualify for social security.

For more info: https://www.cnbc.com/2024/09/19/bil...rity-gpo-wep-rules-gets-closer-to-a-vote.html

Same here. I have 14 or so years in SS and 18 in teaching. In TX we get a small portion of our SS if we choose our teacher retirement system money (which is more). If I retire in 5 years with 23 years in education I'd get approximately $2700 and maybe $200 in SS. There are also some restrictions on getting spousal money. Thank you for this info, I'll start following it more closely!

 

[disykat]

Biggest problem you are going to have is changing your spending habits so you can ensure you are spending down your retirement accounts.

I wish! I don't qualify for long term care insurance due to some health factors. My care, if needed, will be entirely self-funded. Both my parents are/were in memory care which is EXPENSIVE! (So far 6 years and counting between them, plus a few years of home help then assisted living before that.) Unfortunately, we may need every penny. If we don't, my kids and some charities will get a payday. I am SOOOO grateful that my parents had significant assets and have been able to cover their care. If they hadn't been my life would have been even harder the last 10 years!

Obviously we're going to enjoy some of our money, but it would be foolish of us to do too much spending down knowing what we know about worst case scenarios.

 

[smrice95]

Another teacher here. June 2026. My prep for it is to get all loans paid off before retiring. I told my kids I would pay for their bachelors so those are the biggest loans that I have been socking extra money on. We plan on moving to be closer to the kids and warmer weather. If I wasn't moving, I may stay a few more years or consider subbing/leave replacements as we would love to have some more DVC points. When we move we should only have car payments and hopefully one and not two! I do love my job, but the 12 -14 hours to the kids is too long! I also look forward to traveling when it is cheaper and not on the most expensive times of the year or Disney in the summer heat and humidity!

 

[MillauFr]

Its very greatly reduced. And cannot collect spouses under any circumstances.

Agreed. I still think not paying into social security was a huge benefit though. When the program runs out of money in a few years an automatic haircut is going to kick in.

 

[Disneybuckeye]

Yup. We pulled $4,000 a month out of my IRA for 3 years. Netted us $3,000 a month after Federal and State withholding. That was our budget. Still is, but our social security is double that amount, so now we are living high on the hog.

You and your wife are each receiving $4k monthly in Social Security? That is a nice chunk of change. You and your wife must have maxed our your SS income most years to receive that amount.

I will only receive $2k per month when I retire in 4 years, but I was a SAHM for a long time. DH is slated to receive under $5k when he retires next December and he maxed out his SS most years.

 

[soccerdad72]

My wife officially retires on Dec. 31st (at 52). My planned retirement is probably July 1, 2027, after our younger son graduated college (I'll be 55). We'll probably do side jobs after that, but nothing full time anymore.

 

[DJFan88]

Yes!! Same timeish as you - im going at 57 (minimum retirement age with 32 years in)! So, 2 1/2 more years. Havent started counting the days yet though.

 

[Kennywood]

My wife retired 2 years ago. I had planned on retiring at 62, but unfortunate political circumstances killed that plan. So, I'm now going to work until 65. Hopefully November won't kill that plan too. I really want to retire.

 

[tvguy]

You and your wife are each receiving $4k monthly in Social Security? That is a nice chunk of change. You and your wife must have maxed our your SS income most years to receive that amount.

I will only receive $2k per month when I retire in 4 years, but I was a SAHM for a long time. DH is slated to receive under $5k when he retires next December and he maxed out his SS most years.

No, $3,000 each since we don't have any tax with held from SS. $4,000 out of an IRA less 25% state and federal withholding is $3,000 net, so our spendable income has doubled. Wish we were drawing the maximum $4873 Social Security Benefit.

 

[china mom]

DH and I retired at ages 46/47 and started second careers. He likes his job and gets paid well but has a horrendous commute. I don't make nearly as much as he does but have great health insurance and a very short commute. I love my job but struggle physically.

We told out financial advisor we would probably retire in 2025 and that is what based his investing strategy on. But in all honestly, DH will probably be the only one to retire next year. Did I mention that I have great health insurance? And I am five years away from Medicare.

 

[longboard55]

Retired at 66, love not working.

 

[AlohaNow]

Since my job is talking to people about planning for retirement, I have learned so much from my clients! The number one thing I hear is “I wish I’d done it sooner.” Based on those conversations, I am outta here the moment I turn 59.5 and will pull SS at 62. There is a plan in place and the countdown is on!