Author Topic: Paycheck to paycheck and unable to retire.  (Read 2975 times)

CoffeeR

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Paycheck to paycheck and unable to retire.
« on: June 20, 2018, 02:34:24 PM »
So, my friend tells me he knows someone who is in a bad work situation, but they cannot retire. Yes, I know what you might be thinking, what else is new? After all we know this is quite common: no savings, no planning, no choices, etc.  Except for this interesting twist (to me). The person works for a (say) company / organization / government / municipality with a rarity these days --- a decent pension for which he qualifies. Yes, he could retire with a pension and he wants to retire! But he can't. Why do you ask? Well, it will take two months after retirement for his first pension check to arrive and that makes it impossible for him to retire. It appears he cannot cash flow two months, so he continues to work in a bad situation even though he does not want to.

Liberty Stache

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Re: Paycheck to paycheck and unable to retire.
« Reply #1 on: June 20, 2018, 02:46:59 PM »
wow...I don't think I've heard of such a thing....just wow
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AZDude

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Re: Paycheck to paycheck and unable to retire.
« Reply #2 on: June 20, 2018, 02:51:55 PM »
That would take an amazing confluence of bad luck and poor planning. This situation could be the holy grail of anti-mustachianism.

If nothing else, one would think a retirement age person could at least get a home equity loan or something that would equal two months of spending.

Miss Piggy

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Re: Paycheck to paycheck and unable to retire.
« Reply #3 on: June 20, 2018, 02:56:25 PM »
...just wow

That sums up my reaction pretty well.

NorthernBlitz

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Re: Paycheck to paycheck and unable to retire.
« Reply #4 on: June 20, 2018, 03:21:14 PM »
That would take an amazing confluence of bad luck and poor planning. This situation could be the holy grail of anti-mustachianism.

If nothing else, one would think a retirement age person could at least get a home equity loan or something that would equal two months of spending.

Or a credit card.

This seems more like an excuse for not retiring as opposed to an actual reason.

Rosy

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Re: Paycheck to paycheck and unable to retire.
« Reply #5 on: June 20, 2018, 03:29:08 PM »
That makes no sense at all.
Are all his cc's overdrawn to where he can't float for two months?

jlcnuke

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Re: Paycheck to paycheck and unable to retire.
« Reply #6 on: June 20, 2018, 03:50:30 PM »
Living beyond your means is a terrible thing.
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bluebelle

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Re: Paycheck to paycheck and unable to retire.
« Reply #7 on: June 20, 2018, 04:05:05 PM »
that is beyond sad

fuzzy math

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Re: Paycheck to paycheck and unable to retire.
« Reply #8 on: June 20, 2018, 04:09:03 PM »
Well, unless the pension is > 100% of salary, there's bound to be a monthly short fall too
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Swish

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Re: Paycheck to paycheck and unable to retire.
« Reply #9 on: June 20, 2018, 04:12:02 PM »
tell him that excuse is bs. Just default on all unsecured payments for two months and then start catching up(assuming every other lending option is tapped out).

I am with NorthernBlitz sounds like an excuse or fear of actually pulling the trigger.
:)
« Last Edit: June 20, 2018, 04:13:43 PM by Swish »

PDXTabs

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Re: Paycheck to paycheck and unable to retire.
« Reply #10 on: June 20, 2018, 04:16:26 PM »
Seriously, they could file for bankruptcy and then spend the rest of their life living in paradise.

CoffeeR

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Re: Paycheck to paycheck and unable to retire.
« Reply #11 on: June 20, 2018, 05:19:49 PM »
tell him that excuse is bs. Just default on all unsecured payments for two months and then start catching up(assuming every other lending option is tapped out).

I am with NorthernBlitz sounds like an excuse or fear of actually pulling the trigger.
:)
I don't know the person so there is nothing to tell anyone (for me). I found out about this because my friend was shocked at this answer and could not comprehend it. Yes it may be (mental) BS, but the situation appears real (based on other information I have).

I am not asking for solutions, because any person wanting a solution can find one. In many ways this is a mental prison.

px4shooter

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Re: Paycheck to paycheck and unable to retire.
« Reply #12 on: June 20, 2018, 07:28:34 PM »
If he has a pension coming, I bet he has a nice cashout option. So, he would be getting money for his accrued time which would help cover the time inbetween.

If he can't save any cash now, how will he make it earning less in retirement?

Swish

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Re: Paycheck to paycheck and unable to retire.
« Reply #13 on: June 20, 2018, 10:54:56 PM »
Maybe he is just hoping to be let go and severance package out?

Roadrunner53

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Re: Paycheck to paycheck and unable to retire.
« Reply #14 on: June 21, 2018, 04:20:17 AM »
He should get a part time job and save up enough for the two months. He probably should keep the part time job too!

toganet

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Re: Paycheck to paycheck and unable to retire.
« Reply #15 on: June 21, 2018, 06:56:22 AM »
He should get a part time job and save up enough for the two months. He probably should keep the part time job too!

This is probably the most realistic option.  It's likely the pension won't be 100% of existing salary, so this person will likely need to extra income to maintain their lifestyle (+ debt obligations, probably).  Working part time while "retired" isn't the worst thing. 

At some point, though, the tide will come in and they will need to fix the underlying problem.

Vegasgirl

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Re: Paycheck to paycheck and unable to retire.
« Reply #16 on: June 21, 2018, 07:13:58 AM »
That is crazy!!

rob in cal

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Re: Paycheck to paycheck and unable to retire.
« Reply #17 on: June 21, 2018, 10:33:36 AM »
  I hope his pension amount will be rising as long as he doesn't get it, if not this is truly pathetic and ridiculous and sad at the same time.

Slee_stack

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Re: Paycheck to paycheck and unable to retire.
« Reply #18 on: June 21, 2018, 12:11:41 PM »
Sounds improbable.  I guess I'll side with the guy is using an 'excuse'.  Maybe they like to complain?

As everyone has said, you could just stop paying bills and get thru 2 months...

Cap_Scarlet

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Re: Paycheck to paycheck and unable to retire.
« Reply #19 on: June 21, 2018, 03:54:12 PM »
Well, it will take two months after retirement for his first pension check to arrive and that makes it impossible for him to retire. It appears he cannot cash flow two months, so he continues to work in a bad situation even though he does not want to.

I'm calling bullshit on this one.
Make it idiot proof and they'll make a better idiot
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nancyjnelson

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Re: Paycheck to paycheck and unable to retire.
« Reply #20 on: June 21, 2018, 04:01:57 PM »
In the federal government (civil service) it is common that the first pension check doesn't arrive until six months after the employee returns.  There are lots of people who have difficulty bridging that gap.

But two months seems much more doable.

robartsd

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Re: Paycheck to paycheck and unable to retire.
« Reply #21 on: June 21, 2018, 04:22:03 PM »
In my pension system, they can get the checks started pretty quickly after your last regular pay check (provided you get all the paperwork in order with enough advanced notice of your pending retirement). Some people have no monthly shortfall because while the pension can never reach 100% of gross pay it can reach more than 100% of pay net of pension contributions (providing you've been earning credit virtually all your adult life and aren't retiring early).

Acastus

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Re: Paycheck to paycheck and unable to retire.
« Reply #22 on: June 22, 2018, 11:38:51 AM »
It is pretty obvious to the crowd that your friend could stop eating out, cut the cable, stop buying scratch tickets, and make his car last a year longer instead of buying a new one. In 6 months to 1 year, he would have enough to bridge the gap.

I have learned that some people are not teachable. You may need to walk away.

TVRodriguez

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Re: Paycheck to paycheck and unable to retire.
« Reply #23 on: June 22, 2018, 12:53:51 PM »
tell him that excuse is bs. Just default on all unsecured payments for two months and then start catching up(assuming every other lending option is tapped out).

I am with NorthernBlitz sounds like an excuse or fear of actually pulling the trigger.
:)
I don't know the person so there is nothing to tell anyone (for me). I found out about this because my friend was shocked at this answer and could not comprehend it. Yes it may be (mental) BS, but the situation appears real (based on other information I have).

I am not asking for solutions, because any person wanting a solution can find one. In many ways this is a mental prison.

Well put.