Pope Benedict’s retirement package

After Pope Benedict XVI retires, he will get a 2,500-euro pension, a home in the Vatican, and other amenities. How does his retirement package compare with others?

POPE Emeritus Benedict XVI, the 264th successor of Pope Peter and the 265th Pope of the Roman Catholic Church, who made his final farewell Thursday evening, is likely to have a much better retirement package than most American seniors, according to a CNBC contributor.

The retired pontiff is expected to receive a monthly pension of 2,500 euros ($3,266), which is near the maximum a person could receive on US Social Security, 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.

“That’s quite rare,” Richard Johnson of Urban Institute told the broadcaster. One would have to wait until 70 when they retire and would have had to make the maximum pay stipulated by Social Security for a long time.

“For most people, if you look at the median, Social Security counts for about 40 per cent of their income. So it’s important, but people rely a lot on other savings, like pensions or 401(k) savings,” Johnson added.

The Roman Catholic Church will cover the expenses of Pope Emeritus Benedict, born Joseph Ratzinger, and will give him a Vatican home with cooked meals and housekeepers, the report 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.

“(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,” Johnson said.

When he stepped down on Thursday, he said that he was glad to be “surrounded by the beauty of creation,” reported The Associated Press. “I am simply a pilgrim beginning the last leg of his pilgrimage on this Earth,” he added.

Next Monday, cardinals will meet to determine the next papal conclave to elect the new pope.

“May the College of Cardinals work like an orchestra, where diversity—an expression of the universal church—always works toward a higher and harmonious agreement,” Benedict said, according to AP.

Source:vanguard