[SeniorTech] Re: question about retirement insurance
- From: larry schiro <lfschiro@xxxxxxxxxxxx>
- To: seniortech@xxxxxxxxxxxxx
- Date: Mon, 26 Feb 2007 18:33:48 -0500
Having reached the "coveted" age of 55 last year, and am now rapidly
closing in on 56. I have also reached all the magic numbers to
retire from teaching( age and years in the retirement system), I been
very concerned about the cost of health insurance into retirement and
until I reach 65, the medicare age. Below are some numbers I have
calculated on the cost of health insurance before 65.
In our district we are now a single care provider( Independent
Health). The annual cost of insurance( family plan, which I would
select) costs $10,600 per year. We have been experiencing an annual
increase of coverage at about 12% per annum. With no relief in that
increase in sight. As a retiree I could buy my insurance at the
district group rate cost. Below are the annual estimated costs of
health insurance each year including the estimated 12% annual increase.
The total from 55 - 65 is about $186,000. In my district I can cash
in my unused sick time plus another sick time buyout for about $30K.
That leaves me with a total out of my pocket expense of over
$156K!!! Of course give or take a few thousand here or there.
So am I going to retire early????? HELL NO.
As I talk to the guys who chose early retirement, the one factor that
they just didn't cost out was the escalating cost of health
insurance. Many would have stayed a little longer as they have to
close that gap before Medicare. Many are anxiously awaiting 62 to
begin using that money to pay their share of the health insurance
cost. Too bad, but I haven't been "donating all that Soc. Sec.
money to have to pay for health insurance. The districts that
negotiated a lifetime health insurance pay out are lucky they have
that. I don't and neither does my wife in her district. So work I
will and I am enjoying it. As long as my health and enthusiasm is
still good, I'll stay. Who knows I may stay until 70!( no I don't
think so).
So if my math is correct....read these numbers and ponder our future
annual
year base cost
(2007) $10,600
(2008) $11,872
(2009) $13,297
(2010) $14,892
(2011) $16,679
(2012) $18,681
(2013) $20,923
(2014) $23,433
(2015) $26,245
(2016) $29,395
total $186,017
On Feb 26, 2007, at 4:37 PM, Wayne and Brenda wrote:
Thanks for replying. I believe I am the first to retire from my
district in the past 30 or so years anyway. We are just a one
horse school district, K-8. There are 4 other schools like us
around here. I just talked to my uniserve director today and
mentioned that my contract only has early retirement language; I
believe the 5,000 a year is if I had retired early. Some friends
that weren't in education have chosen Humana for the supplement to
Medicare. When I wrote here, I thought possibly others may have
chosen a company similar. The costs is minimal. Our teacher
insurance in my school is fantastic. I will meet with my uniserve
director on Wednesday; she thinks she can work some kind of
retirement deal for me. It's scary. I have heard of teachers
going into depression, etc. after retiring. Thanks again, Brenda
----- Original Message -----
From: Jerry Taylor
To: seniortech@xxxxxxxxxxxxx
Sent: Monday, February 26, 2007 3:20 PM
Subject: [SeniorTech] Re: question about retirement insurance
Brenda...
You're fortunate that your district is going to give you $5,000 a
year towards your insurance. My district (Greece, NY) is only
giving me about HALF that (approx. $200/month). I opted to continue
with my current group plan through the district (it includes my
wife), which means I have to kick in an additional $500/month for
medical and another $100/month for dental. I looked into getting my
OWN separate insurance (individual), but the cost was astronomical.
For me, anyway, health insurance is the single most expensive thing
we have to pay for in retirement. In contrast, I have friends (who
retired from OTHER districts) that have their health insurance
completely paid for for LIFE. (Wow, they sure knew how to hammer
out a CONTRACT, didn't they??)
Hope this helps.
Jerry
www.seniortech.us
-----Original Message-----
From: seniortech-bounce@xxxxxxxxxxxxx [mailto:seniortech-
bounce@xxxxxxxxxxxxx] On Behalf Of Wayne and Brenda
Sent: Wednesday, February 21, 2007 9:24 PM
To: SeniorTech listserv
Subject: [SeniorTech] question about retirement insurance
Hello,
I am thinking about retiring this year. Our contract language says
the district will pay 5,000 a year for insurance with our school
insurance. My question is should I take that along with medicare
and my husband get a separate insurance? I wondered if anyone has
experience with this. I really don't know what to do.
Thanks,
Brenda
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