My mom is a state government retiree and that keeps happening to her, they keep changing the goalposts and her health care costs keep going up. But her state does pay a subsidy to pay for her Medicare costs and she elects to have a very good Medicare plan (I don’t know what all of the plans are called).
Things can change. My husband’s company does pay for retiree health benefits until Medicare age. That is a change. We have enough saved to pay for any medical costs once we reach that age. I think there is also a subsidy to help pay Medicare costs. But we’ve also saved enough if that benefit does go away.
But since Medicare is less than 5 years away, I think we can count on the company to continue to pay for retiree health care until Medicare. They could take it away but that is pretty unlikely and retiring before 65 is quite the benefit.
The problem is that health care insurance costs have risen so much. As current employees our costs have gone up and our benefits have decreased also. I suspect that’s a trend that will continue. Or at least one we’ve planned for.
bennty - thanks for sharing. I’m also generally hopeful that paid-off debt and some frugal living will make for a secure retirement period. But I’m still leery of those unexpected bad health issues and a potentially extended stretch of significant deblitation. Saw it with my own parents and can’t manage to be quite as hopeful that 1) general health will hold, and 2) bad health times will go quickly.
Like the wrestling mat under the stairs idea!! lol
Those of us who experienced downsides through our parents’ situations are bound to be more careful (and nervous). I know that my worries are directly tied to things that happened to my parents. I also know that life can end or negatively change at a relatively young age, so we have to balance that in the equation. While it’s important to work toward financial security, it’s also important to be sure we enjoy life while we can. It’s not easy.
I do think there are a lot of different ideas and things going on in various states and even cities within states that give people a lot of different perspectives based on what they see and experience - with the insurance and various subsidies for example, and how a community may work very well on things like @bennty has talked about in her situation. She has done the research and has been involved with any changes going on - speaking out and learning what might change.
At the WI wedding, talked to my brother from AK, and he visits and talks to relatives in CA. Sister in Iowa and relatives in WI - opinions and how communities are vary widely. Brother and his wife have the Medicare supplemental insurance appropriate for their needs. Sister and her H in Iowa the same - she has retired school system supplemental plans which are inexpensive for her and good coverage. DH and I are happy with what we have, once he receives his Medicare B coverage card and billing (he is delaying receipt of SS).
If traveling by vehicle - more and more places are having toll systems. It was easy for me to sign up for the IL toll system - so I will see what billing I do receive - drove on some toll roads near Chicago and then several on the way back. On the way back hit the toll bridge that became one on the IND/Louisville KY I 65 - and they have an invoice ready 3 - 5 days after crossing; so registered my license plate, last 6 digits of VIN, and email. They had two electronic signs up – it is not a big toll (details were too small to read) but if you cross it several times and don’t pay, they add monthly late charges and can lock you out of using their bridges. IDK how many they have outside of that one big bridge. Our DD in FL said we can avoid the toll roads and she doesn’t use them. So far that is what we came across. Neighbor drove on NY toll roads and now has to look on line on how to take care of.
Several years ago I rented a vehicle in Chicago and was unable to pay one road exit toll (they were going to all electronic I pass system) and I did get an invoice in the mail with an extra charge of maybe $15 or $25. The rental company didn’t give me the web address to look it up and I did a ‘wait and see’ rather than investigate on line when I got home. Paying for the box on the rental car would have been worth it perhaps for a lot of driving on the toll roads around Chicago, but not for me (it was a daily charge at that time of maybe $25/day).
I might down the road travel a little with Amtrak with a friend or with DH. That system - it depends on what area you are in and where you want to go.
@kelsmom - so very true - it’s a balance. There’s no crystal ball and there are so many different scenarios.
Heh - I think that’s probably why most of my ‘bucket list’ items (on other thread!) are focused on the here and now - trying to make the most of today, while planning for a host of different tomorrows!
Yeah, that’s just it, right? And part of the problem is there’s no knowing what the rules will be in 20 years. All we know is that taking care of old frail sick people is hard, hard work, especially if there are cognitive problems, and that it can go on for a hell of a long time, and really wreck the caregivers and the finances in the process.
I am hopeful that over the next couple of decades we’ll also get more serious about euthanasia. Obviously there’s a world of ethical problems involved, especially for those who don’t want to think seriously about it until it’s too late, or who aren’t able to understand what’s involved or making their own decisions. But I’ve already had little puffs of “my god, I’ve done and seen a lot, and you know what, I’m good, also tired,” and I can certainly see being 83 and exhausted and in pain with a poor prognosis no matter how you go at it, and thinking, That’s plenty, I lived, it’s time to give my family time to get familiar with the idea and say goodbye. I don’t need to go to a home and spend all the money, or give my aging, tired kid a nightmare experience for years; I just want give the money to the kids and go nicely.
One has to be very careful in medical care system. Father in law had declining medical stats with Covid at age 92, and in the hospital they discussed ‘comfort care’ with him and he said he wanted that. Unfortunately we don’t think he knew how it would progress. MD told my brother in law that he would die in a day; that didn’t happen. In a day he wasn’t speaking or ‘awake’ - but he wasn’t dead for almost a week. After continuing a few days at the hospital, they transferred him to his skilled care facility. DH was at his side at the hospital while he was still conscious (very strict on Covid situation - once DH was in the room, he could not leave); at skilled care his family could all come in for compassionate reason to say goodbye - spouse of 64 years could hold his hand and say her goodbye (one way conversation). DH and I know if family could have been with him when MD talked with him about compassionate care and all the details, he may have decided to keep the IV and care going to see how things would go. Once he was no longer able to communicate, who knows if he might have had a change of heart about it.
Yes who wants to give up 5/9 of 1% for every month before full social security? DH needs to wait until 66 and 4 months. It is a lifetime in reduced benefits.
Many do want to wait until age 70 to take SS. We believe we can do better with our investments than 8%, and we do have our investment risk at the appropriate level.
@bluebayou we have been making over 8% with our annuities - they have a guarantee level with our initial enrollment/purchase, and each year we have options and choices moving forward. I do remember one had a 7.56% return during one particular period, but the others have been doing a whole lot better than 8%. Our annuities are with various insurance companies which began at different times - 5 different annuities with 3 insurance companies - 31.4% of our portfolio. Way out-performing bonds. As the annuity period ends on each, we will decide what to do at that time with the various funds.
We have 7% with Roth IRAs (that are managed by our financial advisor’s company - and we choose to be in the highest risk/return as those are the funds that will remain in place the longest). We have 42.7% in 401k with 4 fund groups (stocks). The annuities have been purchased with spinning money out of the 401k funds, and we now just have one 401k which has administrative costs being paid for by former employer (except for a $50 fee when we cash out funds or spin funds out). Our home value is 18.2% of our overall portfolio - and we are in a ‘hot’ market with rapidly growing mid sized city which continues to have big business/industrial developments coming into the area. We won’t sell until DH is ready for us to relocate. No pension for either of us - DH’s company kept getting bought out and pension was lost with last buy out (we got stock and cash and do have a $131/month annuity payout). On a prior buy out we received stocks and cash.
DH and I are both 65, so we would not be getting any guaranteed rise with SS until a few more years out.
We got the annuities to lower our portfolio risk and we SWAN.
Some of us don’t look at it this way. We discussed this multiple times with our financial advisor (the only person besides H and I who knows our entire financial picture as well as immediate/long term plans) and made the decision to both draw at 64.
Yes, everyone’s situation is different, when it comes to SS. I think we might take it earlier rather than later, not sure yet though, based upon taxation concerns.
Yes, lots of factors when deciding. Many of them are not totally known, such as life span and future tax (rates, rmd rules etc). Our current plan is to defer SS, but we’ll revisit that decision down the road.
“ Yes who wants to give up 5/9 of 1% for every month before full social security?” - Well you do get the benefit of having the money at younger age, when more able to travel etc and more sure you’ll be alive to receive the check. For some folks it will make sense to take SS at 65 (or earlier). And of course there are many Americans not as lucky as most of us on this discussion…. they have meager savings and no pension, and they really do need SS income sooner rather than later.
We are fortunate to be living off of a teachers pension as retirement, so we paid little into SS. Since waiting for SS to max out wasn’t going to make much of a difference, we decided to take our SS at age 63, so we could enjoy the extra dollars now while we are healthy.
If social security was going to be the main source of our retirement income, our decision might have been very different.
I have a few years to go till 62 but DH and I are considering taking it earlier. We are concerned about solvency and means testing for the program. We’ve paid in a lot of money and would like to receive at least some of it back. “A bird in the hand” comes to mind.
Also, my dear dad waited till 70 to take SS and was then diagnosed with cancer and died at 72.
My father, who was a physician, died unexpectedly at 62. Paid in the max for years. Never saw a dime of it other than the one-time death benefit of (I think) $250 I received.
I think the conventional wisdom is generally to wait if you don’t need the money, but there are an awful lot of unknowns in doing that.
My dad was not in good control of his health and took SS at 62. He smoked and refused to consider sodium or cholesterol in his diet despite a stroke and bypass surgery. But he made his choices and I was glad he took it early to enjoy 10 years of retirement in a place he loved before the final stroke and disability at 72. Regardless his SS supported my mom as well as his 3rd wife for many years.