Early retirement
- Thread starter SteveOUPS
- Start date
Babagounj
Strength through joy
Many things.
Medical coverage , you will have to usually pay out of your own pocket until age 65 unless you find another employer .
Your Social Security amount is based on your 35 highest years of employment . Payable starting at 62 at a reduced rate , 67 if you collect at FRA ( full retirement age ) at 100%.
That $2800/mth is before taxes are withheld ; 20% for Federal and x amount for state .
You could stay at UPS longer and invest more into your 401K , to have a bigger payout later in life .
If you belong to the Union don't forget to get a withdrawal card or you'll be charged for monthly dues .
Medical coverage , you will have to usually pay out of your own pocket until age 65 unless you find another employer .
Your Social Security amount is based on your 35 highest years of employment . Payable starting at 62 at a reduced rate , 67 if you collect at FRA ( full retirement age ) at 100%.
That $2800/mth is before taxes are withheld ; 20% for Federal and x amount for state .
You could stay at UPS longer and invest more into your 401K , to have a bigger payout later in life .
If you belong to the Union don't forget to get a withdrawal card or you'll be charged for monthly dues .
trickpony1
Well-Known Member
All this time I thought our retirement was through the union.
Don't sign anything.
Don't sign anything.
Babagounj
Strength through joy
Depends on where one works .
NE is paid thru the union, not the company .
And one must remember that medical coverage , in a union retiree plan has gone up $ 153 in the last 2 years. ( $507/month in 2015 , $597/month in 2016 and $660/month for 2017 ).
So investing more in a 401K is a good bet to cover increasing medical costs .
NE is paid thru the union, not the company .
And one must remember that medical coverage , in a union retiree plan has gone up $ 153 in the last 2 years. ( $507/month in 2015 , $597/month in 2016 and $660/month for 2017 ).
So investing more in a 401K is a good bet to cover increasing medical costs .
trickpony1
Well-Known Member
Thanks Baba.
I've learned over the years that:
1) anytime UPS offers you something in writing it must benefit them somehow;
2) UPS doesn't always know what they are talking about and;
3) one should be very, very wary.
EDIT: as an example, I was told if I retired and changed my mind within a year that I could come back.
I've learned over the years that:
1) anytime UPS offers you something in writing it must benefit them somehow;
2) UPS doesn't always know what they are talking about and;
3) one should be very, very wary.
EDIT: as an example, I was told if I retired and changed my mind within a year that I could come back.
Babagounj
Strength through joy
Don't forget that SS funds are taxable .
The feds can tax up to 85% of benefits, depending on your income. Thirteen states also tax Social Security.
Withdrawals of pretax money that you contributed to a 401(k) or a traditional IRA throughout your working years also will trigger a federal and possibly a state income tax bill.
(The one bright spot: Withdrawals from a Roth 401(k) or Roth IRA will be tax-free in retirement.
After-tax 401(k) contributions and nondeductible IRA contributions can be taken out tax-free, too.)
Medicare does not cover everything .
You will be required to get supplement coverage like long term healthcare .
And you must think about how long you will live in retirement.
You must plan on living for 30+ years .
Most financial planners will devise a plan going out to your age of 105 years . This way when you hit 80-85 yrs old , you'll still have funds available .
No one can predict that your pension will last that long , so having other sources is vital.
The feds can tax up to 85% of benefits, depending on your income. Thirteen states also tax Social Security.
Withdrawals of pretax money that you contributed to a 401(k) or a traditional IRA throughout your working years also will trigger a federal and possibly a state income tax bill.
(The one bright spot: Withdrawals from a Roth 401(k) or Roth IRA will be tax-free in retirement.
After-tax 401(k) contributions and nondeductible IRA contributions can be taken out tax-free, too.)
Medicare does not cover everything .
You will be required to get supplement coverage like long term healthcare .
And you must think about how long you will live in retirement.
You must plan on living for 30+ years .
Most financial planners will devise a plan going out to your age of 105 years . This way when you hit 80-85 yrs old , you'll still have funds available .
No one can predict that your pension will last that long , so having other sources is vital.
MC4YOU2
Wherever I see Trump, it smells like he's Putin.
All excellent financial points. Your current lifestyle won't likely be supported by that $2800. Healthcare costs are all over the map, and you will want decent coverage as you get older. Also you'll want any big payments like your mortgage and cars paid off entirely.
That being said, consider your current health. How are your knees and other joints? What would your overall health likely be in say, 5 more years, if you stayed at your current job at UPS? Could you make financial adjustments (use an antenna instead of cable, get rid of your land line, downsize your home) to your current lifestyle to live on your pension? If not, could a different occupation that wasn't as physically and psychologically taxing fill the gap?
I left at age 54 with 25 years in, and I wasn't even the youngest retiree in my center. I've never regretted a single retired day yet. No amount of money will ever compensate you for giving your health away.
If you love your job and have good longevity in your family tree, you might want to stay. If not, maybe start planning your departure.
That being said, consider your current health. How are your knees and other joints? What would your overall health likely be in say, 5 more years, if you stayed at your current job at UPS? Could you make financial adjustments (use an antenna instead of cable, get rid of your land line, downsize your home) to your current lifestyle to live on your pension? If not, could a different occupation that wasn't as physically and psychologically taxing fill the gap?
I left at age 54 with 25 years in, and I wasn't even the youngest retiree in my center. I've never regretted a single retired day yet. No amount of money will ever compensate you for giving your health away.
If you love your job and have good longevity in your family tree, you might want to stay. If not, maybe start planning your departure.
Our retiree healthcare went from $50/ $100 (single married) to $200/$400
Some retirement plans are through the union, others are through the company.
And start from the bottom? No vacation, sick days or seniority?
Ms.PacMan
Well-Known Member
They jive. Once you get to 30 years, even if it's pt + ft combined, the payout for 25 years is $2500 plus your part time pension.
You will need to wait until age 52 to get insurance though.
Ms.PacMan
Well-Known Member
I don't think any drivers anywhere in the US have UPS insurance now - only Teamcare.
It's so confusing. How can such a big company have so many different retirement plans?
Ms.PacMan
Well-Known Member
And it's not spelled out clearly. The 30 years combined service qualifies a driver in CS for the $2500, 25 and out, at any age but damned if you can find that in writing in any of the literature they send us. I'm sure it's in the official pension documents between UPS and the union but not in the abridged version we're given.
I just happen to know the answer to it because we've had drivers in my building retire under this exact scenario.
oldngray
nowhere special
It depends on the local and won't be spelled out in a national agreement. Even within CS locals have different language.
Who can live on a third of what they earn now?
UpstateNYUPSer(Ret)
Well-Known Member
Who grosses $7,500/month?
oldngray
nowhere special
A lot of experts say you need 2/3 but 1/2 might be enough if you are debt free. The big uncertainty will be whether the pension will still be there when you retire and if so how much since cuts look very likely. Add in the rising cost of health insurance and you may never be able to really afford to retire.
