How to Cope With a Forced Retirement

To whom ever wrote this article I'd like to ask you if you have planned for an catastrophic illness that gives no warning to a seemingly healthy adult.

Because I was doing your so called "3 legged stool" I had a very good paying civil service job. I live on Long Island, and as you know it is one of the most expensive places to live in the US. So I had my salary, which we were struggling with but scrapping by. I was not at Top salary yet (which I would be now and with working OT I would be making almost 6 figures, and the job I had always had OT available as it was in the Emergency Services field) And I had Social Security as well as a decent some in a 457k. Plus my wife had just gone back to work after having our 3rd child. We had bought a modest home in the neighborhood we both grew up in before the market inflated. We lived a simple suburban life. Our older children were in middle school in one of the top school districts in the state. Things were tough, but we were getting by check to check like most people. As it stood I would have been retiring at 57 years old. I know that's considered young but I would have worked 30+ years at my job & I would have only taken 1/2 pension but the stress of that kind of work is not worth the money to stay another 5-7 years. With my credentials i could get a Part time gig in a local firehouse and set my own schedule.

In March of 2007 I suffered a catastrophic illness which left me totally disabled. I only had to wait 1 year for my social security to kick in. We cut back but by now the housing bubble had burst and we would have lost over 100k on the house. After 3 long years of fighting I received my pension at a rate of 1/3 my best three years. We lost EVERYTHING. I now make less then I did when I started with the County.

My wife and I split 3 years ago. Now we have to worry about 2 rents. I did retain my Health Benefits for my 3 children. My son is graduating in June, Fortunately for him he is receiving a nice partial scholarship to a small university in Nebraska. My middle daughter has BRAINS so she should do well for college in 2 years. The problem comes in with my 8 year old daughter. We're determined to have her go through the same schools that have served her brother & sister so well. When she graduates I'm moving to Las Vegas to join my folks out there in retirement. They had their rent DECREASED by $200 because all those foreclosed homes were bought up and are being rented for nothing. I, like my folks, have no intention of ever owning again.

But first I have to stay here and pay $800 for a studio that's about 350 square feet until my baby goes to college.

I just think that it is ignorant of you to write something that is almost impossible to do in this day and age. Most people are living paycheck to paycheck, and more and more their just thankful they have anything at all coming in. I know your just giving advice but I have to ask - To who?

Michael Rothbaum of NY 3:57AM May 25, 2012

Retirees who are at least age 62 have the option to begin claiming Social Security payments. However, your payout will be reduced if you claim at this age. The amount of Social Security you will receive increases for each month you delay your start date, up until age 70.

joomla kitty of NY 9:41PM May 30, 2011

Tons o bucks in those product placement fees.

WORK-BUY-DIE 12:19PM May 28, 2011

Ageism is prevalent in the workplace. They are viewed as being an old dog who cannot learn new tricks. When I was a new engineer working for GM, an older engineer did not want to take an early retirement. So they took away his computer, stopped inviting him to meetings and giving him assignments. He held on as long as possible before he resigned.

So after a stint of being released from a company, only to attempt a job search, is a very stressful endeavor. It is better if the person can become a contract worker, so they get their work done, and are on to the next one, as they are needed.

In the interim period, they can elect to keep their former employer's insurance via COBRA. My rate was $500.00 per month for one person. I still had very high copays for pharmacy, some upwards of $300.00, two operations left me with $4000.00 out of pocket and half the cost of a 10 day medical stay. I was supposed to remain longer, but my benefits ran out.

I had to leave my job due to disability. However, I have heard of some companies making workers over 65 take their Medicare coverage to save money.

Once I was approved for Social Security Disability, I had to be out of work for 2 years before qualifying for Medicare. But that does not cover all medical costs. Most people take out Medigap policies. It has a plethora of combinations, which can be overwhelming at times. My policy totally covers Part A (Hospital) and Part B (Doctor) and lab work and other tests.

However, pharmacy is the big ticket item for me. My policy has thre periods of coverage. In the first quarter about $2500 must be met - it is the total of out of pocket copays from the patient and the balance of the medicine paid by insurance.

After that hits one goes into the "Donut Hole". All generics are covered by their copays; however, if a medication does not have a copay, then the full price applies. I have one medication that costs $800.00 per month. Another medication costs $190.00 for 9 tablets. When $4,500.00 out of pocket expenses are met, then one goes into the catastrophic phase, where the generic and brand name meds are charged at low co-payment rates. One must be able to budget and save for this period before it creeps up on them unexpectedly.

So as one gets closer to retirement, they should be studying the Original versus Advantage Plans, from a source not trying to sell one on their product.

C.D. Fasano of MI 3:24PM May 26, 2011