Detroit retiree on pension cuts: 'I can't live on what I get now'

cnnmoney ^ | 2/21/2014 | Melanie Hicken

[Signalman]

Thousands of retired and current Detroit workers face pension cuts as deep as 34%, and some say they aren't sure how they'll make ends meet if the plan announced Friday is approved.

"They have worried me from the day they started this mess. You sit on pins and needles all the time," said 69-year-old Donald Smith, who retired in 2005 after decades of work as a civilian detention officer and other general city jobs.

For Smith, the cuts could mean a loss of around $300 a month from his $889 in monthly pension benefits, even as he already struggles to pay for rent, groceries and medical bills. Between his pension and Social Security, Smith currently lives on less than $23,000 a year.

"If they go and cut that, how am I going to live off of that?" he said, "I can't live on what I get now."

At the same time, retirees could face increased medical bills due to proposed deep cuts to their retiree healthcare benefits.

[LegendHasIt]

"Pension being reduced? Do you normally plan for something like that. If the stock market was to totally crash, do we plan for that? If currency becomes inflated into wheelbarrows, do we plan for that?

Well, maybe I'm a paranoid, tin-hatted weirdo, but I did. And for the last 20 years preached to anyone who would listen or read, that this was coming.

[Abathar]

Exactly right. He was promised it and he had faith in what he was told, and also remember that to get his vote the guys doing all the promising probably had their arm around his shoulder offering him a cigarette with a smile.

It’s usually not the brightest bulb in the pack that we are dealing with here anyway, at least not at his level. All I see him guilty of is trusting what was promised to him and thinking 1990’s dollars would get him by in 2014.

Most of us could all be in his position no matter how well we planned someday, no one can really tell what the future holds.

[RFEngineer]

“If they go and cut that, how am I going to live off of that?”

Public Sector workers too often do not realize that someone has to pay for their pensions. When there isn’t enough private sector activity to tax, and when pension funds were not funded - but pensions were promised, then there is a disconnect.

How is the private sector worker supposed to retire when there are so many public sector retirees “living off of that”?

[umgud]

Incidently, the average pension of general employees in Detroit is about 18.5K per year.

Which means some are getting too little and some too much. This fellow is on the bottom end of that spectrum.

[Chode]

yeah, i corrected myself in post #12... my bad

but i still don't think public employees should get to retire before the rest of the country

i do support early retirement for the military though as they have well and truly earned it

[blueunicorn6]

Sue the Democrat party. They caused this and they have lots of money.

[Lurker]

Who did you vote for all those years Donald?

[Starstruck]

Well, maybe I'm a paranoid, tin-hatted weirdo, but I did.

So what did you do? I need to protect what I got.

[Gay State Conservative]

Given that most state,county and municipal “workers” in this country actually sit around on their fat a$$es all day *pretending* to work I have absolutely no sympathy here.

[SamAdams76]

I think the big problem here is that people are retiring too early. Many people have a sense of entitlement concerning their retirement. If you expect to retire at age 50 or 55 in this day and age, you better have at least a couple million dollars in net worth (including 401k and pension) or don't even think about it. Unless you are willing to live a very spartan lifestyle.

Years ago, the average male would be dead by age 70. So it was hard to begrudge the retirement age of 65. However, many of us are living well into our 80s and 90s. Not only that, but most men in their 60s still have their health and must of their vitality. They should be in the workforce.

I'm 52 years old and I'm not even thinking about retirement. I'm having too much fun in my job (Regional manager for a large firm) and I figure I easily have another 20 years in the tank in which I could go full throttle and maybe make it to the Senior VP level. I still feel as healthy as I did when I was in my mid-30s.

So I am expecting to be working well into my early 70s. Also, my biggest money making years are still ahead of me. It would be crazy for me to retire now and I don't understand the mindset of others who think they should be retiring when still in their 50s or even 60s (unless they have health issues or are so financially independent that they simply don't need any additional income).

[Sacajaweau]

Can’t live on $2000 a month (after the cut)?? May be he has all his medical paid for, too.

[blueunicorn6]

Here’s the interview you’ll never see.

“I voted for the con men in the Democrat party. They promised me benefits that they knew would never be possible and stole money like crazy from the city treasury to finance their lavish lifestyle. Now, I’m in trouble because I believed that there was a free lunch. I don’t believe that I should be held responsible for voting for people that I knew were thieves. I believed that the Democrat thieves would steal enough for me to retire on. How was I supposed to know that my electing thieves to office in Detroit would make taxpayers leave Detroit? I’m stupid and greedy. Doesn’t that mean you should feel sorry for me and give me some of your money? Yes, I will continue to vote Democrat. They look out for me.”

[Ouderkirk]

He retired at 60 not 50, but just the same he should have gone to the minimum of 62.

[Kit cat]

I am 60 and still working full time!!! If he had waited another 10 years
To retire his SS would have been ALOT higher, I think 60 is young to
retire but that is just me! He can always get a job as a Walmart greeter!
But of course that nasty Walmart probably wasn’t allowed to build in his
area!

[Chode]

yeah, happy fingers this morning... i tried to correct it in post #12

[hal ogen]

Who did the fellow vote for all these years? DIMs/LIBs? If so...Bwaahahahahahahahahahahahahaha!

[Heart of Georgia]

“Perhaps Donald should have planned better for his old age.”

I planned. Will it be mine when I retire? Or will my savings be confiscated?

After all, it’s not fair that others thought they could really make it on Social Security, and I knew otherwise.

[KeyLargo]

Those retirees voted all those Dims into office for years believing the promises of pensions made of gold. Now, too late the retirees learn that their pensions aren’t worth the paper they are printed on.

[Kit cat]

It is just so absolutely sickening that these government PUBLIC SERVANT
POLITICIANS end up with WEALTH beyond belief! They ALL decry nasty
Horrible CEO’S of companies, and the equality of earnings! SOMEONE has got to start SCREAMING about their OWN wealth and how they have
ALL become so wealthy on the TAXPAYERS DIME and LOBBYISTS!!!
JUST REVOLTING! Americans have become SO STUPID!

[98ZJ USMC]

I thought that if you got a public employee pension you didn’t even pay into social security.

It's at a much reduced rate. The SO's uncle retired from the Alaska State Civil Service. His SS is around $300.00/mo. and his State pension (started at 55) is a comfortable $3,200.00/mo will great health care.

I feel for this guy, but they were sold a bill of goods by a bunch of dishonest economic illiterates and consistently voted for it.

Tough noogies. Common sense will tell you that Ponzi schemes will eventually fail. We are at eventually.