Retirement is Coming

1
Retirement is Coming

• Understanding what that means.
• Prepared April 2005 by Manchester Employees
  Contributory Retirement System

2
What do you expect?

• Do you understand your City Retirement
  entitlement?
• Will you want or need more than you are presently
  scheduled to receive?
• Do you know your avenues of recourse?
• Are you willing to do what it takes to achieve
  your goal?

3
City Retirement will be there..

• as long as you have been in the plan for five
  years.
• assuming that you plan to retire at 60 or after.
• as a supplement to your social security benefit.

4
Possibly complications

• City Retirement is designed to be a supplement to
  social security but eligibility dates for the two
  programs will seldom coincide.
• Younger people are expected to work to age 65 or
  longer before beginning to collect their SS
  benefit.

5
Possible complications continued

• Medicare benefits start at 65 even for those who
  can retire earlier. Where will your health
  insurance come from?
• Your desired income may fall short of what you
  will be entitled to receive. What can you do?

6
Coping with the difficulties

• Plan to work in some capacity after retirement in
  order to qualify for health insurance.
• A 2003 survey of current workers reveals that 43
  plan to work after they retiree just for the
  health insurance.
• A 2004 survey of current workers further reveals
  that 17 will delay retiring in order to continue
  receiving health insurance benefits.
• Begin saving extra amounts early in order to
  cover your premium expenses if you plan to
  retiree before becoming Medicare eligible. And
  dont forget that Medicare doesnt cover
  everything. You will still need a Medicare
  supplement after you reach age 65.

7
Coping with the difficultiesContinued

• Make extra payments to yourself via your City
  Retirement account, Deferred Compensation
  Program, or any allowable combination.
• Accumulate sick and annual time leading up to
  retirement in order to maximize your final year
  of earnings. (This will make your monthly benefit
  entitlement higher.)

8
The Value of Planning

• Its never too early to start planning for
  retirement..
• BUT, it can easily be too late to do anything of
  significance.
• If possible, let time be on your side.
• Even if the hour is late, some planning is better
  than none.

9
Summary

• Know what to expect.
• Understand the limitations of various
  entitlements.
• Have a plan for the problem areas.
• Start as soon as possible to put extra aside,
  even if it isnt much.
• Questions? Call 624-6506 for the answers.