Retirement Income

OK, boomers, you're up against it. You were the generation that thought you'd retire early and play. The leading edge of your age group is now halfway through its sixth decade of life. What is the playbook telling you now? It appears that we're actually growing more inclined to stay at work, says Joseph Quinn, economics professor at Boston College and fellow of the Employee Benefit Research Institute (EBRI) in Washington. That's a trend that started even before the boomers looked 50 in the face.

Editor: Congratulations to David Craig in his bid for Governor of the State of Maryland. I wonder if Mr. Craig realizes that for each Maryland county, there is a county teacher's union. There are many teachers in the State of Maryland, many students of voting age who want to become teachers and even more family and friends of teachers. If there was never any additional room in the Harford County budget for teacher pay increases in the past...

Dear Mr. Gisriel:My wife and I have retired and have decided to purchase a condo. Can we use our Social Security and retirement income to qualify for a mortgage?Michael ParrBaltimoreDear Mr. Parr:Yes. A mortgage lender will need to see your Social Security award letter and proof that you are receiving this income. Ask your lender what documentation is needed for retirement income.If the Social Security and retirement income is nontaxable, your lender should calculate what the equivalent taxable gross income would be, and then use that to calculate the expense-to-income ratios that determine whether you qualify for a loan.

Constance Kihm writes that she is leaving Maryland because she "can no longer afford to support fiscal and social programs with which we do not agree" ("Farewell, my Maryland, farewell to taxes, farewell to extreme liberalism," May 10). She resents that Maryland "feels it is entitled to increase the tax burden on our hard-earned retirement income. " I am a pensioner who turned 65 last year. I discovered that Maryland does not tax the first $27,100 of retirement income! This saved my wife and me about $4,000 in state and local income tax for 2012.

If you hope to maintain your current lifestyle after you retire, you will need 60 percent to 85 percent of your current annual income, financial experts say.Some planners say your living costs will fall somewhat after retirement; others say not to count on it."Why should you expect to live on less just because one day you quit work?" asked Richard Patterson, a chartered financial consultant and chartered life underwriter with Associated Planners Group Inc. in Winter Park, Fla.Mr. Patterson said a retiree needs 80 percent to 85 percent of his or her working-life income.

I must disagree with letter writer Neil L. Bergsman's view that high taxes don't drive people out of Maryland ("Tax rates have a negligible effect on people's decision to move out of state," Dec. 29). My wife and I retired from the federal government, and it puzzles us why Maryland is taxing our retirement income when states like Texas and Florida do not tax retirement income or Social Security benefits. Maryland is not a tax-friendly state for retirees, even though Social Security benefits are not taxed here.

It is with a heavy heart that after living here for 40 years, my husband and I must bid Maryland farewell. We can no longer afford to support fiscal and social programs with which we do not agree. We moved here in 1973, bought a home we could afford, sent our children to Maryland public schools, worked for Maryland companies, paid our share of property and income taxes, and lived within our means. And now that we have retired, the state of Maryland feels it is entitled to increase the tax burden on our hard-earned retirement income.

Constance Kihm writes that she is leaving Maryland because she "can no longer afford to support fiscal and social programs with which we do not agree" ("Farewell, my Maryland, farewell to taxes, farewell to extreme liberalism," May 10). She resents that Maryland "feels it is entitled to increase the tax burden on our hard-earned retirement income. " I am a pensioner who turned 65 last year. I discovered that Maryland does not tax the first $27,100 of retirement income! This saved my wife and me about $4,000 in state and local income tax for 2012.

Editor: Congratulations to David Craig in his bid for Governor of the State of Maryland. I wonder if Mr. Craig realizes that for each Maryland county, there is a county teacher's union. There are many teachers in the State of Maryland, many students of voting age who want to become teachers and even more family and friends of teachers. If there was never any additional room in the Harford County budget for teacher pay increases in the past...

U.S. workers say they expect to enjoy about 23 years of retirement, according to a recent survey.Most, however, will not be financially ready when their working days are over.When you retire, you can expect Social Security to replace about 30 percent of your pre-retirement income. But you may need up to 70 percent of your income to maintain the lifestyle you had prior to retirement.So, where does the rest come from? Company-sponsored pension plans make up some of the difference. The rest, however, must come from your savings.

It is with a heavy heart that after living here for 40 years, my husband and I must bid Maryland farewell. We can no longer afford to support fiscal and social programs with which we do not agree. We moved here in 1973, bought a home we could afford, sent our children to Maryland public schools, worked for Maryland companies, paid our share of property and income taxes, and lived within our means. And now that we have retired, the state of Maryland feels it is entitled to increase the tax burden on our hard-earned retirement income.

In response to Charles Harrell's letter to the editor of Jan. 1, I say please leave Maryland ASAP. He indicated that he and his wife were federal government retirees and that he is puzzled why Maryland taxes his retirement income. In one short reply: because it is income, you dolt. As a former federal government employee, Mr. Harrell and his wife are used to feeding at the public trough. Now that they are retired, they don't like being treated like the common folk. Too bad, and get used to it. Martin A. Silvert, Baltimore Text NEWS to 70701 to get Baltimore Sun local news text alerts

I must disagree with letter writer Neil L. Bergsman's view that high taxes don't drive people out of Maryland ("Tax rates have a negligible effect on people's decision to move out of state," Dec. 29). My wife and I retired from the federal government, and it puzzles us why Maryland is taxing our retirement income when states like Texas and Florida do not tax retirement income or Social Security benefits. Maryland is not a tax-friendly state for retirees, even though Social Security benefits are not taxed here.

Fall classes Registration for fall classes offered by Anne Arundel Community College is under way at the county's seven senior activity centers. Classes begin the week of Oct. 1. To register and for schedule information, go to the center you wish to attend or online at aacounty.org/aging and click on a center for its list of courses. Therapeutic yoga Classes with Tina Marks will be held Tuesdays at the O'Malley Senior Activity Center, 1275 Odenton Road. Therapeutic yoga is offered from 1 p.m. to 2:15 p.m., and intermediate therapeutic yoga is offered from 2:30 p.m. to 3:30 p.m. Information: 410-222-6227.

I and other retired veterans residing in Maryland will soon be seeking another state in which to live due to the disproportionate impact of the state's new tax legislation on retired veterans. Having served my country for more than 25 years, I find that the People's Republic of Maryland views me as wealthy merely because I have gainful post-retirement employment in addition to my previously-earned retirement income. I moved 16 times in my military career, so I'm well versed in voting with my feet.

When he started at Maryland State College in 1962, Daniel M. Maddox envisioned a career working with young people, preferably in physical education. But as often happens, life got in the way and Maddox decided he needed a steady paycheck more than a college degree. So at 20, he took a job at General Motors and worked there almost 40 years. Now that he's retired at 63, Maddox has renewed his interest in helping young people by volunteering during the school year at Tench Tilghman Elementary School as a part of Experience Corps, a Civic Ventures program that places people 55 and older in urban classrooms.

I and other retired veterans residing in Maryland will soon be seeking another state in which to live due to the disproportionate impact of the state's new tax legislation on retired veterans. Having served my country for more than 25 years, I find that the People's Republic of Maryland views me as wealthy merely because I have gainful post-retirement employment in addition to my previously-earned retirement income. I moved 16 times in my military career, so I'm well versed in voting with my feet.

Q: I recently decided to buy a home after renting for several years. I called several lenders and each lender asked for the same documents. I was surprised at the amount of documents needed. When I purchased my car, they ran a credit report and gave me the loan within one hour. Why does a bank need somany documents for a home purchase?J. Woody, Severna ParkA: Most mortgage lenders follow guidelines set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp.