Thursday, March 28, 2019

When A Pension Isn't Worth It



In the recent comments, some of you asked about the outcome with my pension. After running the numbers, I realized that it wasn't worth it. The documentation that I had for work in 1985 didn't count, due to the rules and requirements at that time. Back then, you needed ten years of union employment with Actors' Equity Association.

I was considering looking into stage management  to provide the needed one hour of work, which I was told would qualify me for my five year pension. Some older dancers have been running lunch for the creative team.

The thing is, I would have to rejoin the union, which would cost $1,600. I'm not sure what the dues are now, but I remember them costing over a hundred dollars a year when I was in my early thirties. I dropped out of the union when I bought my house. The money I would receive  would get eaten up by those expenses, so I plan to focus on my writing.

I am happy with the amount of social security that I have earned.  Fortunately, my expenses are very low. That makes all the difference. A modest home and an older car can make life much more affordable.  Using public transportation regularly helps me to stay within my gasoline budget.  Prices here have risen; I paid $42.00 yesterday for ten gallons of gas! That's a significant increase. I normally pay $35.00. I will be driving less, and biking and taking the bus.  Thank goodness there is a stop a couple of blocks from my house.

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22 comments:

  1. Isn't it rather sad that it can cost to get money? Glad you've figured it out though. Sometimes things like that rolling back and forth in ones head can be maddening.

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    1. Hi Lady Locust, Running the numbers was very revealing.

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  2. You are very wise to analyze costs and benefits.
    Keeping expenses as low as possible and increasing income should prepare you well for the retirement.

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    1. Hi Nil, Things are right on track for retirement. It's so important to plan.

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  3. I am sorry to read that the amount of money you'd have to pay out in order to qualify for the pension would cancel out the amount you'd be receiving! Well, at least, you did the research and now you know. I like your positive attitude and I am sure you'll be able to develop other streams of income in addition to the writing (dance/yoga classes, maybe?).

    Gas has gone up quite a bit, hasn't it? I still need to fill up my tank - might wait until next week to do so.

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    1. Hi Bless, Yes, the price of gasoline has risen. I'm glad I no longer have to commute all over Los Angeles to teach.

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  4. You have certainly researched all the money angles to reach your decision. I suspect once you ran the numbers it felt like a huge weight was lifted off your shoulders. I only buy gas for my truly ridiculous car about every 6 weeks or so, but I have noticed the prices have jumped significantly over the last few weeks at our corner station. They say it is the switch to summer blend and a refinery fire (why do we never hear about refinery fires when they happen-wouldn't that be a huge several alarm blaze in LA county that would make the news??), but prices also rise for the switch to winter blend. Who knows!!!

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    1. Hi Anita, Wow, every six weeks is excellent. How big is your tank? Mine holds ten gallons. I actually heard about that refinery fire on the news. I was driving to the grocery store, and it was announced on the radio.

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  5. I'm sorry that for all your hard work and commitment, you won't get the pension you so deserve. But you've planned well and live intentionally and in the end, the stress to try and get it isn't worth the time. Well done! X Chy

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    1. Hi Chy, Dancers have short carers, so we have to move on and pursue new interests. I am fortunate in many other ways, so it will all work out in the end. Thanks.

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  6. Thankfully you are level headed and know how to stretch the pennies.

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    1. Thanks Cherie. Yes I do! I also love spending time at home, which saves me lots of money. It helps to have cheap hobbies.

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  7. Such a shame it didn't work out but at least now you know and can plan accordingly.

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    1. Thanks, mamasmercantile. Yes. Onward and upward. A dancer's career is short, and you have to keep evolving.

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  8. It's good that you can keep your expenses low, Stephenie, so that you can live well on whatever income you have. Here in Australia, we have superannuation which is an amount of money deducted from every pay by employers and 'held' and invested on our behalf by the government. It's not available (unless very extenuating circumstances) until retirement. This is meant to eventually remove need for age pension for many people. (This is how I understand it is meant to work anyway, it's much more complex than this!!)

    Our goal here is to pay off our mortgage (which is low compared to many) as soon as possible. It is our only debt. We have two old cars and they work just fine because they've been serviced regularly. I can walk from here to our little local shops where there is also a doctor, dentist, grocery and cafe. I now work just 10mins from home and this means our petrol expenses have fallen dramatically. Meg:)

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  9. Hi Meg, Yes, we have Social Security here, which will be enough for me when I retire. I plan to keep working until I'm at least seventy, so that I get the maximimum amount. Seniors can also take the bus for free, and our buses go everywhere! Like you, I drive an older car that I keep well maintained. You sound very prepared!

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  10. It is never easy is it? It should be after all your years of working but it isn't. Wishing you well.

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  11. Hi Mereknits, Things are all set, and I am fortunate. Social Security will provide much more money than I would have received through the pension. I plan to keep working, which makes a huge difference.

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  12. I know it's all relative but our fuel here in the UK costs around £60 for 10 gallons. This is equivalent to about 78 US dollars! Public transport is poor unless you live in London or another big city. Free bus passes are available once we reach pension age but we are in the midst of pension age changes. My retirement age for state pension was 60 but has been increased to 66. There is huge resentment as the Government kept news of this very low key and some women did not know until they went to claim their pension at age 60

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    1. Wow, Eloise! And I thought gas prices in California were high. In other states gas is 50% cheaper. I am so sorry to hear about those women in the UK who had turned 60 and didn't receive their pensions. We really need to have back up plans. Thank you for reading and commenting. Your post made me realize how important it is to live near the bus and train stations, which I do. I hope you don't have to drive too far...

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  13. Nowadays I live close to work so most of my journeys are short. I only work part time now so am getting used to a lower income ready for when I get my pension in 3.5 years time. Longer journeys are when visiting. Fortunately one of my children lives nearby, one about an hour's drive away and the other, although staying with me at present, will be moving a couple of hours drive away in due course.

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  14. Hi Eloise, Living close to where you work really does help. You are wise to get used to the lower income in advance.

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