What happens in the USA when?

Question

you retire from work? do you have to save for your retirement or have a private pension? Maybe you get a pension from your job? Do you get a government pension? Supposing you have no money when you retire, what happens then and how much do you get to live on?

OK I'll tell if you will. I am just curious about the system and how it compares to the UK. I get £98 per week from the government as I have worked and paid contributions all my life, and £70 per week from my occupational pension plus a lump sum. I will be 62 in a couple of weeks time. I also work.At Christmas, the government give pensioners £200 for heating allowance or if you are over 80 I think, it is £300. The weekly pension I get translates to $336.

Answer 1

We are all entitled to social security IF we worked. The amount we receive from social security depends upon our work history. Since I'm 60, and have worked steadily since age 17, I'll receive the highest amount possible from social security and that is subject ot change since I'm still working. Luckily, I'm an attorney and I never have to completely retire and had no desire to do so. In my profession, I can simply "cut back" and work as much or as little as I please. My wife and I have also saved and invested and I'm lucky enough to have a secure pension plan because I work for a County government. Social Security doesn't cover people who have not worked and my wife will receive much less because she did not work through most of our marrige. However, if I die before her, she gets my social security benefits. We have Medicare for health care needs for anyone over age 65 and Medicaid for low income persons with serious medical problems. Medicare is based only on age, but Medicaid is based on need. Since I own a home, I could also get a reverse mortgage, which is a plan in which the bank pays you a monthly income secured by your house. That's sort of a betting game. The bank bets you'll die before your life expectency and you bet you'll exceed it. If you borrow more on your house than it's worth, the most the bank can take at your death is the home--no other assets. There are also government benefits available that are separate and distinct for disabled persons or children who have lost a parent. We do have a real crisis looming with social security because of the "baby boomers" hitting retirement age. The first "baby boomer" retired a few weeks ago and there is probably not enough social security available for people under the age of 45 at this time. The government has raised the retirement age once and could do so again. Social security in definately not "secure" and is not enough for most people to live on except as a bare minimum. Luckily, my wife and I have been frugal and I have had a good income and have been able to save. Many Americans are not that lucky.

Answer 2

You could get hurt on the job and have to take an early retire-
ment. Then you'd be given a pension and your other half can
recieve money for being your care giver. So this will surely
help. Then you will be given a car allowance. Either that or
with a replacement car, I think every four years. You will have
money to buy groceries and have money for the allotment of
utilities. In short, you should manage well. Much better probably than when you were working. But in retirement,
all the years you were paying heavy taxes, you will get them
back in benefits.
So the money you mentioned will be a good bit to live on.
And you might even have leftovers for trips and holidays. I
know a family that manages to do that every fo often. They
live far better than a retired American couple. They most
often have to live very frugally to make it til the end of the month.

Answer 3

Many times companies have retirement plans that benefit
employees when they retire. Sometimes these companies
pay into the plan as well. We get a government pension
called Social Security, which we get at age 62, 65 or 67,
depending on our situations and finances. I started collecting Social Security at 62. Because each person's
situation is different, it is sometimes helpful to go to the
Social Security office and discuss it with an employee there who can help set it up and provide information.
Employers' human resource departments can also do
the same thing for their employees. Employees pay into
Social Security benefits which are deducted from the
paycheck and accrue so that later on they can collect. At 65 people are also eligible for Medicare, the U.S. government's health care program, which has various parts for hospitalization, medical care, and prescription drugs. Both Social Security and Medicare sometimes work together. It is often advisable to set up some sort of financial advice and investment plans while people are still working. Employers can also pay into these, such as 401k and 403b programs, so the person will have some money to live on when they retire. It can be very difficult if one doesn't have these programs. What you have to live on when you retire depends on many factors. Often, retired people move to a retirement community, or move in with relatives. Many communities provide assistance and
advice for seniors. I hope this answers your question.

Answer 4

I think it happens or something sad happens everywhere. I don't know where you live but I am sure it's not perfect. The US often lets their problems be very public when most countries are the opposite. 1- Yes, but there is a pharmacy on nearly ever block. The ones that refuse things like birth control don't stay in business long because no one goes to them after they refuse. Would you go to a restaurant after not getting served food because the server is a vegan? No. Same thing with pharmacies. It happens, but it's rare. The law is there so the people can't sue them for it. People have become too sue happy. 2-I have heard of these places. Only knew about one. Once the community found out about it then protested in front of the building until it closed. 3-Never heard of this. Doesn't sound like these operations are forced. They never narrow it down to race because that's illegal. They might narrow these offers to dominantly black neighborhood but it would still be open to whites. An interesting fact for you is most people going to the hospital for over dosing is house wives.

Answer 5

There are several options open to people.

1. annuity/pension from government employment

2. pension/IRA saving from private employment

3. Other personal savings/investments

4. Social Security [if you worked enough quarters] - paid by the government but for which the person has paid into over the years...payments are based on amount of earnings and years in the system

If you neither qualify for Soc. Sec. nor have any other form of retirement annuity or saving, you are the proverbial creek without an oar...unless you over 65 and or have a disability. You may then qualify for Supplemental Security Income...SSI...which really doesn't amount to much....and is surely not enough to live on. Your options then are public assisted housing/senior housing...long waitng lists everywhere or living with family. You may also qualify for food stamps [also not enough to live on monthly] and medicaid which is a health benefit

Answer 6

Dear Shan you are lucky with your pension presumably because you were employed by the NHS ( I am guessing here), my wife and I have also worked all our lives and both paid full contributions and we do not get anything like the amount you mention. If we had not paid into a private pension of our own choice we would be in straitened circumstances.The heating allowance is £200 per household not per person.

Answer 7

I worked for the U.S. government. I have saved for some of my retirement by placing monies in a personal bank account. I get a pension based on my earnings, normally half of what I made full-time. We also had a TSP savings plan instituted at my former place of work, where we could put in a certain % of our earnings into this plan. You could put in a maximum of 15% if you could afford it. We have many funds to choose from under this plan. You get to choose how and when you want the monies distributed, but it is mandatory that you withdraw by age 70 1/2. The interest earned is pretty good.

Answer 8

We get social security and it isn't near enough to live off. Hopefully you have a pension from one or more company jobs. My husband nor I do...but we do have a business and will work at it as long as we live or are able. Can't see retirement as an option. My husband would have to get up at 5:30 every morning and work physically and mentally or he'd go bonkers. Now I enjoy doing the leg work via the computer and being on call for him. Plus the grandkids need me while their parents work. Since my youngest is 17 I expect to be rearing kids forever.

Answer 9

We don't really know right now. For those born in and before 1964, the government says their social security is alright. For those of us born after 1964, the government says our benefits will be about two thirds what the generations before us were. Many people do have retirement accounts and some (not all) employers offer 401K plans; however, there are those of us who are struggling to make our mortgages, pay our utilities, and raise our children and we don't have much, if any, left over out of our paychecks to pay into retirement accounts. I am presently looking for a better job, but there don't seem to be many good jobs left out there. If nothing else, I guess I'll be living in a cardboard box and digging through people's garbage cans after I retire.

Answer 10

Darn: You guys got it good! I'm catching
the next plane. I see they are remodeling the Hill Towers in Sheffield.
The Cal. scoop is you must live on
whatever Soc. Sec. you get per month...
if its $836.00/mo and over.
If it's under, then the State will pay
Supplemental Security Income to
bring it up to the $836.00/mo.
If a person gets SSI, it will pay for
the Medicare monthly premium and
the yearly deductible and the 20% that
Medicare does NOT PAY for each
doctor's visit.
A person would get NO food stamps
because they must buy their food
from their income. They must also
pay their heating/water/garbage/
sewer from that income. There's nothing left over for clothes/car/trips or anything else. This is bare bones
living. The average 1 bdroom apt.
in my town is now $625/oo per month.