I am posting this in the hopes that it helps other people be aware of a gap in our (USA) social safety net and to consider potential problems before making choices.
I taught at a public school (IL) for 10+ years. Like police, fire fighters, and government workers, I paid into the pension system, not social security. Two years ago, I lost my teaching job due to budget cuts. It sucked, but it seemed like a mixed blessing; I was bringing home $500 a month after all of the childcare costs and it didn't feel "worth it" for my spouse and I to be so damn exhausted all the time. So with that said, I went the stay-at-home parent route. Yeah, I'd lose out on contributing to my 403b, but we figured it would only be 2-3 years and I'd have time to grocery shop, cook, and clean so we could actually be there for our kids.
I picked up a part time job for 2 years. Nothing fancy, just a paid tutoring gig through an over priced company. I was easily clearing $1000 a month tutoring so we were feeling really good. I paid into social security during this time.
Aaaaaand then I was diagnosed with cancer.
I do not qualify for Social Security Disability: I spent all of those years teaching and paying into the pension. I only have 2 of the 5 years necessary for SS.
I do not qualify for Supplemental Security Income Disability: We have more than $3,000 in cash/stock assets.
I do not qualify for my pension plan's disability services: I was not teaching when I became disabled/diagnosed with cancer.
My spouse and I made choices that seemed pragmatic and worked for us. We thought we were doing things by the book: paying off debts, creating an emergency fund, retirement planning, and just being good parents. But life threw a curve ball and we got bitch slapped because we didn't realize we had left ourselves vulnerable. I am not sure if we would have made a different choice for me to stay at home; it's not like you realistically plan for cancer in your 30s. But at least we could've weighed our options with full knowledge of this no man's land instead of being caught off guard.
My advice to anyone looking to step away from the work force: make sure you assess your eligibility for benefits or plan to compensate for the loss of those benefits before you make that leap. I know a lot of women step away from work to have kids because the childcare costs are just brutal. You might qualify when you first quit work, but after a few years (depending on your age), you might not longer qualify (there is a "must work X credits in the last Y years" thing). So please be careful and plan ahead!
Submitted February 20, 2019 at 03:16PM by omgitreallyhappened https://ift.tt/2V5BUos
