There are a number of things to think about when optimizing your situation for your pension. Some of them can happen as far away as five years away from retirement while other large decisions can happen the day before you retire.
The AbbVie Deferred Compensation Plan allows employees to create an income stream that will be taxed at a lower rate and serve as an additional income source from their investments / pension / Social Security.
As a law enacted in the 2018 Illinois budget, TRS is now able to provide Accelerated Pension Buyouts (APB) to those that currently don’t teach under TRS anymore.
In working at AbbVie, the benefits available are substantial. As is typical in most companies, there is a life insurance benefit. But AbbVie also offers numerous supplemental life insurance plans. So, should you be signing up for these?
When you turn 65, an HSA turns into a pseudo-IRA. The account is now not just for medical expenses, it can be used for everyday expenses as well. There’s no requirement of distributions like an IRA, so the account can keep growing if you wanted to.
But when you retire, it’s almost like you’re coming to the end of your investing journey. With that being said many people think that their risk tolerance goes down to adjust for this – but that’s not the case.
If you are a teacher (or employee) retiring from a State of Illinois school district, you’ll likely have some questions about Medicare and how your TRS retiree medical insurance (TRIP) coverage works. Your benefits are unique in that TRIP will transition over to your Medicare and TRIP after age 65.
Many educators think that the TRS AAI buyout will mean less money for them in the long-run. In some cases, this may be true. However, depending on your goals, taking the buyout may actually give you more savings over time.
One of the biggest benefits of electing to opt for the TRS AAI buyout is that you gain control over your pension now, rather than play the wait-and-see game as TRS tries to work through their funding problem.
The truth is, it’s possible to overspend when you receive a lump sum of cash. This could potentially hurt your future retirement savings plans, and jeopardize your future lifestyle. However, if your lump sum payout is part of a well-rounded financial plan, you’re more likely to find success in retirement.
You may be wondering: If I take the AAI Program buyout, how much will my lump-sum payment be? And how will my benefits be impacted?
COLA, or Cost-of-Living-Adjustment, is a legally required automatic increase to pensions. Illinois state law has required an automatic annual increase to pensions since 1969. Currently, COLA is a fixed 3% each year (compounded, meaning the prior year’s benefit gets increased by 3%). This increase happens every year, and is supposed to help your pension benefit keep up with inflation and a constantly-rising cost of living during retirement.