Looks like the company chips in a whopping $90/ for post medicare premiums.

No kind of company sponsored life insurance including accidental death,

Pretty sad: and skimpy

 

That's the way it is for most workers. And a big reason why I go for maximum RHA VEBA spillage. Plan on needing $100K/person for medical bills in retirement.

 

Andy,

Did you or your wife get or have an AD retirement from Uncle Sammy?

Cheers,
Biff

 

Yes, both of us have military retirements.

We have Tricare. If you're thinking that Tricare's really cheap, yes it is. Right now.
But copays went from $12 (IIRC) last year to $30 this year for us.
And when one turns 65, they need to pay Medicare Part B in order to keep Tricare. Check out Medicare Part B prices. If you earn $170K-$214K/yr joint in retirement (the very lowest we could earn with 2 mil retirements + 2 social security checks), the monthly Part B premium is $187.50/person/month. That alone is $4500/yr for us. https://www.medicare.gov/your-medica...t-b-costs.html

And then there's nursing home costs (if needed). Two or three years in a nursing home will wipe out a $200K RHA VEBA account.

So if you're thinking that medical costs won't spike for you in retirement, I suggest you crunch the Part B numbers and then rethink how much Tricare will cost annually.

 

Andy,

Great, just what I wanted to know!

Thanks,
Biff

 

Biff, sorry that I didn't post a Tricare for Life link. This should explain it:
https://www.tricare.mil/LifeEvents/Medicare

I wasn't aware of the fact that we have to pay medicare Part B to have Tricare For Life until a couple of years ago. It caught me by surprise and because of the premiums involved, I decided to max out my 401k as fast as possible to get the 16% contribution to spill into my VEBA RHA.

In addition, I want to make sure I have the ability to pay for a nursing home for at least a couple of years before tapping into savings.

 

Andy,

Thanks for answering the unasked questions. I didn't know it either and it's a good to know fact. I will spread the word amongst my buds.

Cheers,
Biff

 

You can run different saving/spilling scenarios at RHACalculator.com

 

Did United have retirement benefits such as paid or subsidized insurance after retirement prior to the merger or bankruptcy? I’ve never worked for a company that did. I always thought that when I’m no longer providing a service to the company that our relationship was over except for pass travel.

 

I do it the simple way.

100% of income going to 401k - first pretax until filled up, then post tax. Maxes out shortly after profit sharing goes into post tax. That gives one maximum spillage.

No calculator necessary for me.