Should You Retire?

Have you have reached retirement age and are contemplating whether to retire or not? Are you torn between retiring to your golden years or continuing to work for a few more? Here are a few tips to make your decision a little less painful.

1. Consider Your Age
If you are in the 55 to 65 age range, retirement will already seem attractive to you. First of all consider your age. Realistically speaking, we only have limited number of years on this earth. Look at what you would still like to accomplish with those remaining years. Would you like to spend time going around the world? Or do you have any goals you wish to fulfill if it werent for the daily grind of work? If that is so then you can factor in these goals and lay out a time table for your retirement and activities afterwards.

Another age-related issue to consider is your actual age. You actual age is a measurement to verify how old your body really is. Have ever wondered why some people look about 5 years younger than they really are? This could be because their bodies really are of that age. The factors that determine this aging are genetics, health habits, diet and others. If you feel that your physical age is way beyond working, you may choose to retire.

2. Health
Is your health preventing you from being productive in the workforce? Or is your health making work more uncomfortable for you as time passes by? You may want to check with a doctor for a total health evaluation before considering continuing with work

3. Family
Some people will want to spend more time with their families as the twilight years approach. You may want to factor this into your decision to retire.

4. Finances
Will you be financially capable of sustaining your lifestyle well after retirement? If your retirement savings are not up to par with your spending lifestyle after retirement, you may want to stick it out with work for a little while longer. You also have to consider the fact that some retirement plans become more attractive if you retire later. But if you have saved up enough finances to tide you over those needs and enough to cover unexpected expenses such as medical fees, etc. as well as expenses for your planned vacation trips and other goals, you will want to retire early.

Also consider the fact that many people who retire find out that life without an occupation will turn out to be very boring. You may want to keep in touch with your employer so that he or she may offer jobs that you can do on part-time basis such as consultancy, filling in for those on vacation, etc.

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Planning for Retirement Activities

Retirement doesnt mean the end of an active lifestyle. Quite the contrary, it opens up new opportunities for many new activities. Some retirees substitute voluntary community work for their former work. This gives definition or meaning to their roles after retirement.

Household work, volunteer work, family roles and community service actually increase after retirement. The familial roles of grandparents increase because of the expanded time available for travel.

The skills and knowledge acquired before retirement have value in the life of a retiree. Even if learning something new education and training affects the ability to do various activities at retirement. Lack of skill and a low literacy tends to limit the leisure activities of retirees.

A very difficult task to prepare for later on in life is the ability to cope with losses that increase as people get older. The productivity is the first loss in retirement but adjustment usually is short. Loss of a spouse generally has the biggest impact, and in general is the hardest to anticipate unless a terminal illness is diagnosed before death. The best preparation for a loss of spouse is to work on a sense of independence and self-reliance.

The two biggest concerns for retirement living were security of finances and health coverage. This is according to the GSA (Gerontological Society of America). Another great concern identified was isolation or lack of social support for well-being and loneliness or lack of support for emotional well being.

Planning for retirement must have preparation for financial well-being, a social support network, a set of meaningful activities and health care coverage. All of these concerns actually relate to each other. When a retiring person has a sound financial plan, the person can buy adequate housing and health care coverage. Retirement lifestyle is a continuation of the persons middle-age life.

A sound lifestyle can last a long while. Friendship and family can provide the support network later on in life. Retirement planning which includes developing economic and social skills cannot anticipate everything but provides a good foundation for enjoyment of life later on.

A successful retirement living includes the creation of a network of groups, family members and friends. Few people choose to be alone from the rest even if approximately forty four percent of women and roughly 18 percent of men aged 65 or older lived without relatives. Fifty percent of women above 65 were widows.

The Four Classifications of a Public Retirement System

It is that time in life that we all look forward to. It is time to sit and relax and no longer have to worry about catching the bus or missing lunch just to beat the deadline. It is that point in our lives that the challenges of a planned working schedule is modified into a more relaxing pace, away from the hustle and bustle of the everyday struggle to work.

It is the day of retirement.

Basically, retirement systems refer to the methods or processes, in which the employees can begin use of their retirement benefits depending on the nature of their job and the amount of their take home pay.

In the United States, the retirement system may vary from one state to another state. However, every retirement system functions and operates just the same.

The retirement system is categorically divided into four different retirement systems. These are the Judges Retirement System, State Employees, School Employees, and the State Police Employees Retirement Systems. Every category has it own system and each of them ha its functions as well as restrictions.

To know more about the four retirement systems, here are some facts that are very helpful to those who need it.

1. Judges Retirement System

This type of retirement system refers to the retirement benefits entitled to judges. The rules and regulations stipulated within the provisions of Judges Retirement System are in conformity with the services rendered by the judges to their work.

2. State Employees Retirement System

This particular retirement system aims to provide those who have rendered adequate services to the state, thus, they are entitled to special privileges that are only applicable to state employees.

These retirement benefits are exclusive for people in the state government.

3. School Employees Retirement System

Any benefits that are entitled to teacher and educators are those that fall under the School Employees System. Benefits and profits are gained during the retirement.

4. State Police Employees Retirement System

This retirement system refers to the system that is responsible in organizing the appropriate services and benefits that are entitled for people who have sufficiently tendered services as a police officer until such time that the concerned person has already reached retirement stage.

Boiled down, retirement systems are specially made to make life more meaningful when people are already on their retirement age.

What is Public Employees’ Retirement System?

The Public Employee Retirement System is for government employees except for teachers and students. This is a mandatory membership and all members should fill out a form of application at the beginning of their employment. It is a benefit plan that gives benefits to employees once they retire. This will be based on the number of years they rendered service and on their average salary.

The Public Employees Retirement system also covers survivor and disability protection. The system also allows those with 30 years of service to file for an early retirement. They also provide death benefits and beneficiary benefits. Every Public Employee Retirement System of every state is committed to ensuring the retirement benefits of every employee.

Contributions are deducted from the employee’s payrolls. The amount may vary for every employee depending on their retire plan and coverage. Currently, the contribution rate is 8.5 percent of the salary of an employee and will increase up to 9.5% in the year 2007. Employer contributions however, range from 13 to 17%.

The benefits that you will get once you retire are dependent on your contribution and position as well as your employer’s contribution. The benefits are fixed depending on the legislation set by every state. That is why it is always recommended for members to know their benefits and coverage so that they can get the most of their contributions once they retire.

Although the Public Employee Retirement System is compulsory for all employees, there are still criteria that you have to meet to become a member. Here are the criteria that you need to meet to become a member for most states’ Public Employee Retirement Systems:

1. The applicant should be a regular employee and the annual salary of the applicant should be $1,500 or higher.

2. The applicant’s position should be under the coverage of the Social Security System.

Generally, these are some of the most common grounds for ineligibility:

1. If the person does not meet the minimum annual salary required which is $1,500.

2. If the applicant is not covered by the Social Security.

3. If you are a temporary employee

4. If you are currently employed by the Job Training Partnership Act and being paid by their federal funds.

5. Students who are employed by their schools and universities where they attend regular classes sometimes may not qualify for the PERS.

6. Inmates in correctional institutions are not eligible.

7. Mental health and retardation patients do not qualify for the Public Employee Retirement System.

Preparing for Your Golden years

Planning for your retirement is obviously a good idea. The phrase “the earlier, the better” describes what your policy should be for handling your transition from a harried work life to your relaxed golden years. At best, take twenty four to eighteen months to prepare for this significant change in your life.

* Cleaning Up - Try to pay off any outstanding debts or fiscal responsibilities before moving on, especially those that are hedged against your retirement plan. If you don’t, you’ll probably be paying them out of your pension/savings and that is an incredibly bad idea for a retired individual.

* Doing the Paperwork - A year before you retire would be a good time for you to start doing the necessary paperwork for your retirement. Birth certificates, passports and other identity papers should help smooth your transition to a senior citizen.

* Health Care - Always check with the employee benefits department six months to a year before retirement. Ask them how your health insurance will change once you’re not a member of the company. Depending on the answer, you may have to look around for new or additional insurance for yourself. Also, take into consideration any continuing ailments that you may have. Covering them with health insurance is a good idea, since they may take out a significant part of your retirement income.

* Budgeting For Yourself - Check what your income sources will be after retirement. This can be from your employer - with the company’s own pension plan, Social Security and your own personal savings. After that, make a budget that would fit your approaching financial situation. You really need to do this well in advance, so that you may be able to change it for any required adjustments such as paying for new medical insurance and other expenses that may pop up. A year should give you a large enough margin to prepare. If you’re having trouble balancing it all, a financial advisor is a good investment. Try to find one that has a good solid reputation so as to avoid any problems.

* Making a New Tax Payment Plan - Switching from your salary to your retirement income is a big change but you still have to pay taxes for that change. After retiring, contact your tax advisor on what forms you’ll have to submit and how to set up a good payment plan so that you’ll be able to maximize what you can out of your payout from retiring.

Military Retirement: When Services Really Pay

When somebody has done something good, it is right to provide him or her some rewards. For all the hardships and continuous service to the community, a worker is entitled to all the required benefits in exchange for all the services that he or she has done.

It is for this reason that retirement benefits are extremely important. It is solely the best gratification one could ever have after so many years of working hard.

In the military, people who work for the government and for their respective community should likewise be entitled to receive the benefits that are due for them.

Basically, military retirement is available in three remuneration plans. These plans were authorized by the Congress, which are entitled for every military personnel who have rendered the needed services to the government and to the whole country as well.

Military retirement plans are unique on its basic concept inclusive of the service dates, in which the amount of retirement benefits will be based from.

These military retirement benefits involve the primary service dates that provides the DIEMS or the Date of Initial Entry into Military Service and the service date as stipulated in the Title 10, Section 1405 of the United States Code.

For a complete understanding of the benefits in military retirement, here is a list of the three remuneration plans.

1. DIEMS before September 8, 1980

For military personnel whose DIEMS is before September 8, 1980, the military retirement benefit is based on the product of the military personnels monthly income and the 2 % of the concerned personnels years of service.

This plan is known as the present military retirement plan.

2. DIEMS between September 8, 1980 and July 31, 1986

Any military personnel whose service dates falls between September 8, 1980 and July 31, 1986, the expected retirement pay is the product of the 2 % of the personnels years of service and the average of a personnels highest 36 months of the basic take-home pay based on the days of active duty.

This military retirement plan is known as the High 36/50 Percent Plan.

3. DIEMS on or after August 1, 1986

Any military personnel whose DIEMS is on or after August 1, 1986, the amount of the expected retirement benefit is the product of 2 % of the personnels years of service, but less than 1% for every year of service that is below 30 years, and the average of the personnels maximum income on a 36-month remuneration.

This plan is called High 36/40 Percent Plan.

Indeed, any of these three plans will definitely give the military people enough financial aid by the time they retired from service.