As Pope Benedict XVI steps down on Thursday,
his retirement package - the first one the Vatican has had to prepare
in almost 600 years - would likely be considered a sweet deal by the
average American senior, providing a steady income and generous perks.
Let's
start with the basics: The pope emeritus will receive a monthly pension
of 2,500 euros, according to Italian newspaper La Stampa.
That
translates to almost $3,300, or close to the monthly maximum of $3,350
that Social Security will pay to an American who retires this year.
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Few
people will actually qualify for that amount. For starters, you would
have to wait until 70 to retire. You would also have to spend most of
your working life earning Social Security's taxable maximum pay, which
is set at $113,700 this year.
"That's quite rare," said Richard Johnson, director of the program on retirement policy at the Urban Institute.
He
pointed out that the average Social Security check is about $1,200 a
month - not enough to pay for the typical American retiree's expenses.
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"For
most people, if you look at the median, Social Security counts for
about 40 percent of their income. So it's important, but people rely a
lot on other savings, like pensions or 401(k) savings," Johnson said.
A
big nest egg is not something the pope emeritus has to worry about. The
Roman Catholic Church will cover his living expenses, provide him with a
spacious home inside the Vatican and pay for everything from cooked
meals to housekeepers, according to The Telegraph.
Such services
are not available to the typical American senior, unless he or she pays
for an assisted living facility or resides in a nursing home, Johnson
said.
What about waiting to retire until 85, as Benedict did? The
average American retires at about 64, so working that long is unusual,
Johnson noted.
"If you have a job you love, it's great," he said.
"(But)
just like the pope, the biggest determinant of retirement is health
status. When your health starts to deteriorate, that's what often pushes
people into retirement, sometimes earlier than expected."
Health
care costs are one of the big risks that older Americans face, and
while Medicare pays for the bulk of their expenses, many things are left
uncovered, Johnson said. Meanwhile, the pope emeritus will continue to
be a member of the Vatican's generous private health care policy, the
BBC reported.
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Bottom
line: rent-free living, few out-of-pocket expenses plus thousands of
dollars deposited into your account each month would probably constitute
a good deal in most people's minds.
Of course, the pope is not
most people. His financial health is of such interest that it recently
got the Saturday Night Live treatment, with a mock ad showing a worried
Benedict surrounded by a pile of unpaid bills and seeking the help of a
financial planning firm called "Papal Securities." Motto: "Because
heaven can wait."
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