[SeniorTech] Re: question about retirement insurance
- From: Cheryl McCue <clmccue@xxxxxxxxx>
- To: seniortech@xxxxxxxxxxxxx
- Date: Mon, 26 Feb 2007 15:47:21 -0800 (PST)
I retired at age 60 with no health care plan from my district. Luckily, until
I'm 65, my husband's construction union insurance will cover me. After that,
it's all up to me. My husband is younger than I so I will be 65 before he is,
but will lose that union coverage, with dental and optical, when I am 65. He
is retired as well, and is considering taking his social security at 62, which
is a year from June. Because I've not paid social security or enough medicare
to qualify, I will have to purchase Part B through my husband. Lots of
questions and concerns for the future for us. As for a Medicare supplement, I
am caring for my 85 year old mother, and her costs keep rising. Luckily we are
healthy now, and striving to stay that way. It is a concern to consider when
thinking about when to retire, and I welcome all the input you all have given.
larry schiro <lfschiro@xxxxxxxxxxxx> wrote:
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
Cheryl
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