I prematurely released my comment with my jittery new iPad. I will try to replicate what I said. Please ignore it if my answer got posted as I cannot find it.
Basically, I am not in favor of buy-outs because they usually are not an advantage to the retiree. They most often do not adequately provide for inflation or longevity. Unfortunately a lump sum usually is very attractive, especially to someone to whom it appears a large sum of money. But it hardly ever amounts to the same sum that the retiree would get if he/ she took the monthly payments. The latter usually amount s to and often exceeds the buy-out. Monthly sums usually are better too, for people who are not necessarily good money managers. I saw it in action. My stepfather took a lump sum buy out because my family urged him to do so. I urged him not to. Well, he was not a good planner nor was he used to a fairly large ( but not sufficiently) sum. He went through the money in a short time. And there are another few chapters about the family strife that this decision brought.
I too, was offered a buy-out when I was 55 and was tempted for a short time to take it. It is a slightly different scenario because I was not yet retired. I am so much better off for not having taken it because my retirement amount was increasing each year that I worked. As I said( now 3 times if you got my other email) things that seem too good to be true, often are.
Now, what might work, is getting those in Congress to take a lump sum proportionate to what they would pay other retirees. And at the same time, get them to give up their lifetime health benefits.
That would encourage all of them to support Medicare.
I prematurely released my comment with my jittery new iPad. I will try to replicate what I said. Please ignore it if my answer got posted as I cannot find it.
Basically, I am not in favor of buy-outs because they usually are not an advantage to the retiree. They most often do not adequately provide for inflation or longevity. Unfortunately a lump sum usually is very attractive, especially to someone to whom it appears a large sum of money. But it hardly ever amounts to the same sum that the retiree would get if he/ she took the monthly payments. The latter usually amount s to and often exceeds the buy-out. Monthly sums usually are better too, for people who are not necessarily good money managers. I saw it in action. My stepfather took a lump sum buy out because my family urged him to do so. I urged him not to. Well, he was not a good planner nor was he used to a fairly large ( but not sufficiently) sum. He went through the money in a short time. And there are another few chapters about the family strife that this decision brought.
I too, was offered a buy-out when I was 55 and was tempted for a short time to take it. It is a slightly different scenario because I was not yet retired. I am so much better off for not having taken it because my retirement amount was increasing each year that I worked. As I said( now 3 times if you got my other email) things that seem too good to be true, often are.
Now, what might work, is getting those in Congress to take a lump sum proportionate to what they would pay other retirees. And at the same time, get them to give up their lifetime health benefits.
That would encourage all of them to support Medicare.