I have a neighbor who lives about 5 houses from me. She has lived in the house since she was about 5. Her parents passed away many years ago. I taught B in middle school and she's been my neighbor for 60 years.
I often visit with B. Every once in a while the R word comes up. Today I jokingly brought up retirement. So she told me she's 64 and will retire at 65.
People who work for government or large corporations have pensions. Usually around 10% is taken from your salary to pay for your pension. You usually contribute to cover your benefit plan.
What I found out is that she knew nothing about retirement and how it works.
A big part of pension is the benefit plan. The benefit plan looks after us when we're working. So the benefit plan covers things like :teeth, eye sight, physio therapy, drugs, hearing, travel insurance and more.
When you retire make sure you take the benefit plan with you. You still have to pay for the benefit plan but that's much less than paying 100% of you treatment. . Some people opt out of the benefit plan and that's a big mistake.
There's much more to know when retiring. Make sure you get reliable advice.
I've been retired for 28 years so I know that I've had many benefits and it's given me a good life.
Those with benefit plans are fortunate. I pay for mine and it's covered a lot. Thankfully the government is stepping up with some new benefits for those that don't get them from their workplaces.
ReplyDeleteSounds great what we call benefits are very expensive.
DeleteThe age or retirement is receding for many people in UK. They're having to work longer in order to afford retirement. It's very hard for those whose work is physical.
ReplyDeleteAnd they make everybody feel guilty as they increase pensionable age.
DeleteI think you need to have a few more visits with B as she gears up for retirement. You could provide her with a wealth of knowledge!
ReplyDeleteI've pointed her in the right direction. I'll check and see if she found the HR that I suggested.
DeleteI opted out a long time ago. My benefit plan cost me more than it ever yielded. I am now in the Canada Dental Plan, and Ontario has a pretty good prescription plan for seniors.
ReplyDeleteThat's a gamble I wouldn't take.
DeleteOne really has to do homework before retiring!
ReplyDeleteThere are choices that have to be made correctly.
DeleteInteresting with the differences between countries. Glad you can guide your neighbor. We U.S. folks might need to figure out a retirement in Canada at the rate our idiot prez is destroying things. Sigh. Linda in Kansas
ReplyDeleteIt's not always straight forward. There are pluses and minus . Your Prez makes us feel very nervous as well.
DeleteHello,
ReplyDeleteI love retirement, both hubby and I worked for the local city government. We are blessed to have a pension and benefits.
Take care, have a wonderful week ahead!
We pay for benefits but they are worth it.
DeleteI have the US Social Security checks every month, along with annuities that I paid for out of my paycheck for thirty years. It's made for a very comfortable retirement, although I'm not able to go on cruises and stuff like that.
ReplyDeleteWe need less in retirement and old age.
DeleteI was thinking about retirement and how to accomplish that nearly since the first day I started work out of college. Perhaps that is why I retired earlier than most of my peers.
ReplyDeleteNot many think that way but it's worth it.
DeleteDon't wait until you are 64 before you start planning your retirement. On the financial side, there is a lot to figure out. The majority of people these days do not have a big pension, so there are TFSAs and RRIF conversions to figure out. Should you delay CPP? Etc. On the lifestyle side there are a lot of things to get used to and everybody is different in how they embrace retirement. I just retired at 65 and seriously began to research and plan 5 years before I actually did it. Not working is your new job!
ReplyDeleteYou obviously took a good look at the issues. I was surprised that B hadn't done anything. I will push her. She's a single woman.
DeleteI hope you will be able to help her get the most out of her retirement.
ReplyDeleteI just want to point her in the right direction.
DeleteSocial Security and Medicare as well as some savings have taken care of our retirement years here (U.S.). And no, we don't have the means to do any world traveling, but we are comfortable. But things are a bit chaotic politically, so praying that not too much changes in this department.
ReplyDeleteWhat's going on makes people feel insecure.
DeleteTom and I are very fortunate to have a State Teachers Retirement Pension as well as Social Security. We have been retired 20 years and have managed very well so far, but as we now are beginning to hire more things done here on or property, we are having to be more careful.
ReplyDeleteWe also have a good teacher's pension. So far, I've used up 28 years .
DeleteIt's best to know all your options before retiring.
ReplyDeleteThee certainly are ,many options to consider.
DeleteOne must research retirement options carefully. I've been retired for 19 years, I think, and I'm still learning stuff.
ReplyDeleteThe field of pensions can be very tricky to negotiate. I am glad you have been able to give "B" some sound advice based upon your experience.
ReplyDelete