If You Were Offered 2/3 of Your Current Salary

[AldebTX]

paid out as a monthly retirement, for the rest of your life, to retire now. Would you?

Its guaranteed money, placed in an account that can't be touched by your employer.

At what age would you consider this offer?

[Arctic Dave]

1. Hell yeah, but I'm only forty.

[DURHAM D]

2. Why does it matter?

It won't happen.

[pnwmom]

32. Apparently it did happen. The rest of us can dream. n/t

[FiveGoodMen]

3. Would it be adjusted for inflation?

[AldebTX]

5. It has a COLA

at 2/3 of the Social Security COLA amount

[PoliticAverse]

37. 2/3 SS COLA

I feel the current COLA formula understates inflation as it really is so I wouldn't
be thrilled with the 2/3 COLA amount (especially with the high-risk that we will be
entering a period of high inflation).

[bobbolink]

59. You may not have heard... the COLA is "suspended" for at least TWO YEARS.

[pnwmom]

4. If it came with health benefits until Medicare kicked in. n/t

[Ishoutandscream2]

6. What you just said!

[AldebTX]

7. It Includes a Subsidized Health Benefit

Right now a monthly payment of $60. However,if you ever lapse its gone...you can't get it back.

[pnwmom]

14. If it was the same benefit our company offers now,

I'd say "absolutely." And then I'd make damn sure not to let the health policy lapse.

[ret5hd]

8. Why do I sense a amway-style sales pitch headin' this way?

[pnwmom]

13. LOL. n/t

[dkf]

9. When I have a paid up residence and access to health care...

Situation based...not age based.

[ProdigalJunkMail]

10. nope...for lots of reasons...

but the three biggies are currently aged 3,5 and 7...

sP

[AldebTX]

19. Gotcha

My only dependent is the dog...he can lean on the partner...

[AldebTX]

11. I Guess I Should Also Say

You get 2 months of termination pay

Plus all accumulated sick and vacation time.

Believe it or not I am actually being offered this at age 48...and sorely tempted. My partner is freaked I am considering giving up a job in a down economy.

[pnwmom]

15. Here's something to ask your partner:

Where is the guarantee that, if you decide to keep working, your employer won't simply lay you off at some time before retirement? Wouldn't you then regret not taking this offer now?

I can see why you're tempted. Especially with the COLAand the health benefits.

And if you did manage to find another job in this down economy (or, in a few years, in a better economy), it would all be gravy.

[AldebTX]

17. Thats the Way I see It

Altho...it sorta feels too soon to "retire"

[MajorChode]

21. Start your own business if there's something you're passionate about

Since you'll have a check regardless, the worries of making money in the business would be behind you. You don't have to retire.

[pnwmom]

23. Did you read my post after the edit?

The part about not assuming that you will even be able to keep that job until retirement age? There's no guarantee that you won't be laid off in the future, even if you choose to stay on now.

[HuckleB]

25. What about health care?

It doesn't seem like $60 month is much. What do you have in other retirement savings? What do you owe on your house?

If I owned my house outright, and had a legitimate, affordable health care plan, I might consider it at your age.

[pnwmom]

30. See post 7 about health care. n/t

[PoliticAverse]

43. Frugal or spendthrift?

Are you the type of person that lives at the edge of their income or could you actually
live well (and put money into savings even) at 2/3 of your current salary ?

[TheCowsCameHome]

12. I did.

Almost broke my arm trying to get the hell out the door.

[peace frog]

16. I would take the offer

and I'm mid-50s.

[hfojvt]

18. age 18

so, yes. Although 2/3 of my current income might be kinda tight since I am already partially retired.

[AldebTX]

20. My Fear Is I am Missing Something.

Something that I haven't thought of that I will be kicking myself for.

[peace frog]

24. If you have it in writing, take it to a lawyer for a look-see

If the offer is not in writing, ask for it, then see a labor lawyer for advice.

[HuckleB]

+1

[pnwmom]

27. Great idea. Well worth the price of a lawyer visit. n/t

[littlewolf]

58. +1

[HuckleB]

22. What about inflation?

:shrug:

[pnwmom]

26. S/he addressed that.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=9224817&mesg_id=9224856

[HuckleB]

29. Yeah, I saw that after I responded.

[Fresh_Start]

28. right now, in an instant....

2/3's of my current salary is way better than I'm expecting to see in my retirement

[slackmaster]

31. I'm 52 and I'd seriously consider retiring immediately

I have a friend who works for a local government, who is planning on doing something similar when she reaches 58.

[pnwmom]

34. I wish my husband would, but it's those health benefits.

When they're good, they almost lock you into a job.

[Fresh_Start]

33. check the rating of the insurance company thats providing the

annuity.

[pnwmom]

35. Excellent point. n/t

[PoliticAverse]

36. About the guarantee...

There are guarantees, and there are "guarantees" (i.e. subject to loss due to someone going bankrupt).

[AldebTX]

40. Its A State of Texas Municipal Employee Retirement System

Not too likely to go bankrupt. It also by law can not be raided for funds. It is completely independent from the State. The funds in the account are deposited over an employee's employment by a deduction to his/her pay and a matching amount from the City. Similar to Social Security. I have been paying in 26 years.

The downside...if the employee dies before his expected death date...only the employee's funds go to the estate. The City's share stays with the retirement system to pay out benefits.

[thecrow]

38. Well, no.... only because I am on UE

But if it were before I lost my job to the recession, I think I'd be happy with it
Only if I could also do some work on the side.

[ProfessorGAC]

39. You Can Find Me On The Golf Course

I'd be out of there so fast, i would redshift.
GAC

[Fumesucker]

41. 2/3 of nothing is nothing..

I'm of the age where I never expect to work for anyone else again..

[jdlh8894]

42. What's a SALARY?

Please define for some that are paid by the hour!

[blaze]

44. I absolutely would!

I'm 56 and have to work eight more years to retire at 50% of my current salary. And I'll have to pay out quite a bit more for health insurance.

I agree with the poster above who suggested having a lawyer review the offer.

And about feeling too young to retire... you just need to rename this next chapter in your life...

[RagAss]

45. This ain't France...get back to work you pawns !!!!!!

[handmade34]

46. oh, yes!

[quaker bill]

47. No

couldn't afford it right now, daughter is in college. See me in two or three years...

[Gold Metal Flake]

48. Yes.

Show me the paperwork. I'm ready.

[county worker]

49. What guarantee do you have they won't renege on the payments in the future?

Companies are going to court to get out of paying pensions and they are winning.

[Bluzmann57]

50. Yes. Right now.

52.

[Xenotime]

51. Hell yea! Free money.

[AC_Mem]

52. I'm 52

And Yes, I would take it if I had healthcare, gotta have that. I have a home business that I would then be able to build.

[lonestarnot]

53. Nope.

[Occulus]

54. Absolutely. Without hesitation. n/t

[Omaha Steve]

55. IF I work till I'm 70

That is about what my pension would be. Since my job currently is tough labor, I don't think that will happen. I'm 53. IF I qualified for a disability tomorrow, I'd get about the same amount.

I think I just figured out why they want to reduce the disability number. I'm against that BTW.

[hendo]

56. Sweet, can I take it now? NT

[MH1]

57. I'd probably take it now.

as long as there were no strings attached. i.e. if I could go back as a consultant part time, as many 'retired' people do in my line of work. :)