Yes. As of October 1, 2010, you will be allowed to live on less than 500 000.
What if my savings do not cover my health insurance? What are the consequences for retirees if you are uninsured?
If you have fewer than 200 000 in total savings, it is considered to be your retirement income. This means that you are considered to be in “emergency” status. Because of this, you will not be eligible for social security benefits during the period of your emergency and you will not be paid health insurance. You will therefore need to be prepared to pay a higher monthly premium and thus spend more time on the job. If you have 200 000 or more, there may be situations where you or your family will not be able to pay this premium. You should therefore check with your financial adviser to see whether or not you have the necessary savings.
Can I retire on less than 500 000?
If you have less than 250 000 in total savings you will be considered to have made a large contribution in your last year of full-time study. The amount of this contribution is your “fixed” income. Your fixed income can be less than the applicable amount or can even be over this amount because many students who take a “low-tax credit,” which reduces taxes by 5% or more, have their income less than the maximum amount covered under this policy.
What if I’m uninsured and have health insurance?
If you have health insurance you may be eligible for the “medical pension.” For information on the medical pension click here. If you have health insurance but no medical pension, you may be eligible for an annuity.
An annuity is a type of annuity where you receive monthly payments based on the expected value of your pension. In the case of an annuity you will receive a monthly annuity payment of your full pension based on the value of a certain percentage of your pre-existing or future pension. The annuity provides some protection from inflation and a monthly payment, depending on the value of your pension, is guaranteed for as long as the pension is in full. The amount of the annuity depends on the size of your existing pension and on your current level of income.
How will I get my annuity?
Annuity payments from the Social Security Administration are based on the values of your life expectancy, the time remaining in your employment, your contributions, your contributions of earnings on your private pensions, and your average earnings.