Retirement Planning Advice or Tips?
I’ve been at LLNL for about 30 years, enrolled in TCP1, approaching 60, and am looking to make an exit within a year or so. Any retirement planning tips or advice in the vein of “Things that I know now that I wished I knew then”? One specific question I have is in regards to the TCP1 cost-of-living adjustment. I think that I once heard that this inflation adjustment is made once each year on a specific date so that if one is planning on retiring anytime around that date then it’s better to retire immediately before it than immediately after it? Anyone know when this date is? Also, any other tips or advice would be appreciated.
-Doug
I’ve been at LLNL for about 30 years, enrolled in TCP1, approaching 60, and am looking to make an exit within a year or so. Any retirement planning tips or advice in the vein of “Things that I know now that I wished I knew then”? One specific question I have is in regards to the TCP1 cost-of-living adjustment. I think that I once heard that this inflation adjustment is made once each year on a specific date so that if one is planning on retiring anytime around that date then it’s better to retire immediately before it than immediately after it? Anyone know when this date is? Also, any other tips or advice would be appreciated.
-Doug
Comments
I retired jan 1St 2016. Using a financial planner that knows everything about LLNL helped me beyond expectations .
Try them:
https://www.insight2wealth.com
One more thing, realize that a lot of the "taxes" that came out of your paycheck during your work years won't be there after you retire so you'll be making your pension dollars work much farther. You won't have to contribute the huge paycheck reduction amounts to support the pension any longer. You won't be paying the Social Security tax. You won't be paying the Medicare tax. You probably won't need term life insurance and you certainly won't need long term work disability insurance. When you add these items up you'll find that you might make less in "gross" while on your pension but the "net" won't be so bad. Oh, and learn to relax and enjoy your retirement that you've earned!
2.COLAs are about 2% in July-Aug. Prorated.
3.Watch the work rules if you take social security early. Penalties are staggering
4. You'll be forced into medicare at age 65,It is much more complicated but works out about the same. You lose vision coverage. Get glasses the last year.
5. If your spouse is lots younger than you expect a 5-10% reduction in your pension.
6. You will miss the scope of the techical challenges.
7. You will rapidly become obsolete without the on the job technology updates.
8. You will smile...a lot.
9. If you took TCP2 you could stay on the job and collect rerirement. . Very rare opportunity.
10. Lots of paperwork. Find one of your very organized buddies who just did it. That's your mentor.
11. Visit Zermatt in October, take the funnicular up to Gormegott (sp?). Revel in the Matterhorn, the glaciers, the forrest, the Alps, avalanche control measures, the spas, swiss wine, Swiss women...Thank the Lord you are alive.
The fact that retirement income like a pension isn’t taxed as heavily as employment income is a big plus. (Also, no more after-tax mandatory paycheck contributions to the TCP1 retirement fund.) So when I work out my expected after-tax pension and compare it to my after-tax employment pay, they’re actually not too different. Also, the availability of a retirement health plan helps a lot. Will talk to someone in HR soon about my planned retirement to make sure that I’m fully up-to-date on what to expect when I check out of the Lab. Thanks again, everyone.
-Doug
Wrong unless you are referring to payroll taxes. Otherwise, pension income is taxed the same as payroll income. Do some more research.