Resonsibilty for your step kids?

[jack707]

Just got my pension statement from the Boilermakers construction union a few days ago and it said that if I was to retire single I get a higher pay then being married which will be significantly lower

 

[ovrszd]

Just got my pension statement from the Boilermakers construction union a few days ago and it said that if I was to retire single I get a higher pay then being married which will be significantly lower

What's your point???

 

[jack707]

What's your point???

Don't get married! Or get her to sign off.

 

[beowulf]

Just got my pension statement from the Boilermakers construction union a few days ago and it said that if I was to retire single I get a higher pay then being married which will be significantly lower

That is probably because if you are married there would be a continuation of benefits at some percentage to your wife. If she is younger, then the pension would expect to have to pay out longer and thus benefits for the longer duration would be less.

 

[RNeumann]

What's your point???

Huge point. OP married later in life and possibly after retirement. Pensions are nice because they provide a "defined benefit". However this defined benefit ends and nothing further is paid to anyone. Typically when you retire you choose what that benefit is. For round numbers I'll give an example- party receiving benefit could get 70k/year for his or her life or 60k/year of his or her life plus the spouse's life. If OP chose a benefit for just himself and he passes the spouse is left with zero. This typically can't be changed once you choose it.
A non pension type retirement where you build a nest egg and live off the interest or investment would continue on after you pass as it does not end.
Just trying to walk this out with OP so he is aware of ramifications of giving away a large percent of his only savings (that he has shared with us) of 100k. The 100k in a 457 (deferred comp) is taxed when it is taken out. So his healthy retirement puts him in at least the 25% bracket so he really only has 75k.
With a retirement that could end when he passes and an unknown situation to leave his spouse with I thought it prudent to verify what the status. The interest off of 100k is 10k/year at 10% return..not enough! And giving that away now only makes it worse. OP states his spouse has no money.

 

[kenmac]

''If you were me, would you help them ?'' Pay for college ? No, I would not pay for college. I would help them though. If the one with children needs help with babysitting, etc, I would help. If their vehicle needs oil changes , etc. I would help with that.

I paid college for two sons. My youngest son wanted to continue on to grad school. He got married. I told him I paid for 4 yrs that he was on his own for grad school.He took out loans to pay for grad school.

 

[ultrarunner]

Most of my friend either took the payout or higher amount for their lifetime...

So far they have all greatly outlived their spouses so have come out way ahead.

The one that took the lump sum have also done well... mostly controllers, accountants, etc... figuring the pension would stop the moment they had a heart attack and died but the hundreds of thousands in lump sum would be theirs...

Don't have the same concerns as no pensions or lump sums on my horizon.

 

[kenmac]

Don't have the same concerns as no pensions or lump sums on my horizon.

Being self employed, I was/ am in the same boat. I had to fund my own retirement with IRA's, and the $ I got for selling the business

 

[ultrarunner]

Doing it all over again the self employment track is the one I should have continued... I had 10 good years setting up the rentals which has worked well...

No Step Kids in the family so I'm looking from the outside in... everyone stayed married to their spouses so far.

 

[jerrybob]

So......Retriredguy..........what did you decide??