Signed up for Social Security

[sweetana3]

if only it didn’t cost us so much during our working years. I would have loved to been able to invest the amount that I and my employer paid over the years. Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.

The Federal Government changed its whole retirement system in 1987. From that point on, it is Social Security, a much smaller retirement payment, and a voluntary 401K type plan (Thrift Savings Plan).

I suspect there are some state government parts including teachers that still maintain their own separate retirement systems but over the years, they have dwindled.

[Gardnr]

if only it didn’t cost us so much during our working years. I would have loved to been able to invest the amount that I and my employer paid over the years. Why do you think teachers and gov workers have such good pensions? They don’t pay into Social Security.

DH works for the state-has since 1993. He pays into Social Security AND Medicare and the state pays in their portion for these as well.

[jp1]

If I recall correctly Williamsmith is also one of those government workers who gets a pension, and not SS. I also seem to recall that Pennsylvania had underfunded it to a level that he's now getting less than he would have under SS. Undoubtedly the "government pension vs. SS" question is very much a "your mileage may differ" type of question due to the variations in government pensions.

The 1987 overhaul was indeed huge. My father worked for the federal government for almost 30 years starting in the early 60's. He had worked almost 15 years fulltime paying into SS prior to that and until the overhaul had expected to get both SS and his pension. He ended up retiring in the early 90's and only getting the pension. It was generous enough (and he and mom frugal enough) that they certainly never had any money concerns, but it was definitely a marked change from what he had been planning on.

[dmc]

I have friends from Illinois who are worried about their government pensions. So they are all definatly not equal. Thankfully the wife’s is well funded. Of coarse there are always some politician bringing up a bill to take control or lump other agency’s together.

But SS May change in the future also. Or those of us with other incomes may have our SS reduced one way or the other.

[jp1]

But SS May change in the future also. Or those of us with other incomes may have our SS reduced one way or the other.

True. Paul Ryan is still very much alive and unfortunately those college kegger party dreams of ruining people’s lives won’t die until he does.

[dmc]

Due to WEP my SS is 300/month at age 66. My pension is only 20k. Not sure what huge pensions Dmc talking about.

My wife retired at 50 years old. She had 27 years in the system and we paid $75,000 for an additional 3 years so she would qualify for 30 yrs. Her contribution was 12% to 14% of her salary, and the school district matched that amount. So if everyone put 25% of their salary away for retirement it would also make for a nice retirement after 30 yrs.

Pensions obviously vary, but many are quite good. I know several former police officers that are members of my golf club. I don’t know what their pensions are, but they live in nice homes have have nice cars.

[dmc]

True. Paul Ryan is still very much alive and unfortunately those college kegger party dreams of ruining people’s lives won’t die until he does.

The new crop of Democrats will also be looking for ways to fund their socialist utopia.

[SteveinMN]

I know several former police officers that are members of my golf club. I don’t know what their pensions are, but they live in nice homes have have nice cars.

I know people with nice homes and nice cars -- and debt up to their eyeballs while they try to keep up with the Joneses. Maybe law enforcement officers get really nice pensions. Maybe they're just hoping their debts will be erased by death.

DW will receive a pension but the amount will be far outstripped by what she's put into a defined-contribution plan and Social Security.

[Lainey]

I think the gig economy has taken care of any pension issues for the younger generation. It's Social Security and whatever you can manage to save.

[LDAHL]

Wisconsin, where I live, is one of those states that elected to include public employees in SS, which is fortunate for me. I’m also fortunate to participate in one of the very few public pension plans that is fully funded. I’m a one-percenter!

Between the pension and SS (which we will delay for me and take early for my wife) we will not need to touch our investments except for dire emergency or capricious self-indulgence. We will have some level of policy risk, but will be diversified between COLAed SS increases and the Wisconsin plan design that bases increases on portfolio performance. It’s a good feeling to know the checks will keep coming even if I lose my mind and that my widow will never need to live on less than $100K/year.

I have much to be grateful for. Now, as even many public employers are shifting to defined contribution plans, I think I was very lucky on timing. This proves yet again that it’s better to be lucky than smart.