Cellar Scribblings

[serious crayons]

I agree about the benefits. Older people working is good for the economy because we are cheap. I work 2 to 3 times longer to take in the same amount of income, and I do not get any benefits. Another thing, I spend a lot of time supervising, mentoring and teaching the full time employed people, covering for them, filling in for them, etc. I don't mind it but people get very dependent on me. I have so many responsibilities already! Because of my caregiver responsibilities to my mother and grandchildren, I can not work more than about 20 hours a week. That's how I end up working almost every evening!! I don't think most younger and employed people have an accurate idea of what it's like.

I hear ya, sister -- I don't make as much as I should either. But as a group, older people are expensive. As workers, they often earn or at least expect high salaries because of their years of experience (or, in a union business like mine, because of where they are on the pay scale). That's one of the obstacles for older people getting hired. But those who are willing to work for less have a better chance.

As retirees, older people are even more expensive, using Social Security and Medicare. And because the generations following boomers are so much smaller, until about 2030 (when boomers start to die off) there will be fewer working people paying taxes to support more retired people than ever before. In many states, the number of people who will enter the workforce in the next 10 years is smaller than the number who will exit. Meanwhile, a shrinking workforce could keep the economy from growing as fast as it could. So if older people stay in the workforce, paying taxes instead of drawing SS and increasing the GDP, it's theoretically good for everybody. And the good news for job seekers is that the labor market is so tight that jobs are relatively easy to obtain these days. Some industries already are desperate.

[Jeff Wrangler]

Nope, 70. Your benefits increase by 8% for every year you delay claiming Social Security, up to age 70.

I must have missed another change in there somewhere. 

[serious crayons]

I must have missed another change in there somewhere. 

I don't know whether it has changed recently, but a lot of people are unaware of this. I only know about it myself because I wrote a story a while back with that detail in it. The copy editor emailed me and said, "Good story, but I think the 8% is a little exaggerated." I emailed him back the table from the Social Security Administration's website.

I just interviewed a friend who retired a year ago, at 62, and immediately claimed his SS benefits. He mentioned another friend of his who just retired and is waiting to claim SS "for some reason." I held my tongue.

[Front-Ranger]

I'm not taking social security yet. I had a vague idea that it would be good to wait and I didn't need the extra money. There is a hitch, though. This month I will turn 65 so I've had insurance companies and brokers hounding me for months to look at their Medicare supplement insurance. Several of them market it as "free". You get free doctor's visits, hospitalization coverage and prescriptions. This is totally misleading because you do pay a monthly premium; it's just taken out of your social security payment. Since I don't receive SS, I would have to pay monthly just as I have been for years. Everybody tells me how lucky I am because now I get Medicare and I am home free, but it's really business as usual.

[brianr]

In New Zealand everyone over 65 gets the age superannuation (Social security?) even multi millionaires but it is taxed. I get an extra supplement because I live alone. Because of my other assets I do not get help with rates, electricity etc. We also get a gold card which gives free local transport (out of peak travel times) and many discounts in shops etc. I get 5% off all my groceries (not alcohol) at my local supermarket on Tuesday and Wednesday.

In Australia you get the aged pension at 65 (it is going to go up to 67) but it is means tested so you have to give details of your assets and income. Because of my recent trip to Europe, my assets have gone down so I have sent my changes to Centrelink in Australia and they will now give the NZ government more money on my behalf but it is not as much as NZ gives me and I have never done a day's paid work in NZ.
If I still lived in Australia, I would not pay any tax and as long as I was eligible for any pension even a $ per week, I would get rates and power assistance plus free driving licence, car rego. I still have my Australian Seniors card so get very cheap city transport but not free when I visit.

However medical care is much cheaper in Australia. I need the cataract removed on my right eye but as my left eye is so good, I cannot even get on the waiting list for free surgery in NZ so I am going private and will have to pay about $5000. In Australia, I could get it done for less than $1000 or even free if I was prepared to wait a while. I have thought of going back for the surgery but would probably have to live for a month or more with my sister and my Brother-in-law and he and I would probably come to blows.

[CellarDweller]

Hello Bettermost Friends!



Yeah, been away from the blog for a while, but now I'm back.   LOL

that's what happens when you go on staycation, the routine just stops.

cubicle was still clean when I got to work today, so no big pile to plow through. 

[serious crayons]

I'm not taking social security yet. I had a vague idea that it would be good to wait and I didn't need the extra money.

I have talked to many of the country's leading experts in retirement financing -- that was a big topic at the workshop I went to in New York in June, plus I wrote about it last year and talked to people at a number of national organizations.

They emphatically endorse your vague idea. They say wait until age 70, if you can.

Now, if you have a pension, you can take that as early as you want, especially if there's no incentive for holding off. But few people have pensions these days.

[brianr]

All Australians have superannuation funds if they have worked. From 1983 all employers have had to put 3% of wages into a super fund. It has gradually gone up and is now 9.5%. Employees can add to this and receive tax advantages. After I paid my house off in the early 1990's I began putting 20% into it.

I could not access it until age 55 unless severe medical needs, mainly people with a terminal illness.  It is now age 60. I began to access it at age 61(2005) but kept adding to it with casual work (employer contribution only) until 2009 and when Mum died in 2006 and I inherited half her unit I added a lot more to it. The fund lost a lot in 2007 and things like Brexit do not help although it seems to have recovered since that. It is why I can travel overseas every year and do not really need to worry about money, but I cannot help myself, something I also inherited from Mum.  However, as my poor mother who lived to almost 97, always said. You do not know how long you will live.
Also I got a ruling from Inland Revenue that as the withdrawals are not taxed in Australia they would not be taxed in NZ.
New Zealand has a scheme called Kiwisaver but it is not compulsory so many of my new friends here are largely relying on the Government pension and think I am very lucky.
I use the Government pension for day to day living but it does not allow luxuries. It is currently $335 (US$245) a week after tax for a single person living alone.

[CellarDweller]

Hello Bettermost Friends!



How is everyone doing today?

Last night was a "fun night" for bowling.  Pizza, soda, cake and a few rounds of bowling played for fun, not scoring.

Just a way to get back in touch during the summer!

New season of bowling starts in September.

[serious crayons]

Tell that to my dog! Of course, he doesn't care if it's Wednesday or some other day.