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DH is govt employee with 35 yrs of service. His pension has reached the point where additional years of service in his current position will not impact the payout much. Health concerns are prompting an earlier consideration of retirement although SS (at 62) is still 4 yrs away. He can continue as a temp (20 hrs/wk - much more suitable to his overall health and well being) and total income with pension after taxes will be very close to present income. Medical insurance is covered as a retirement benefit. I'll continue to work indefinitely, but have 2 (private industry) pensions from 31+ yrs of total work when I do retire.
401k's are healthy, although always room for more.
We've read and researched for some time now, and cannot find a financial reason not to proceed with this. And we will be reviewing all details with our FA. But I wanted other thoughts on perhaps something we've not considered. Thanks in advance.
A pension unaffected by working longer, medical insurance covered, part time work offered. So work 20 hours or 40 hours for same pay and benefits. What is the question?
Did you just need some other jealous soul to read that back?
From what you've said, it looks like there would be a negligible gain from working these extra years (the 20 hrs/week pay + minor foregone pension increase). It doesn't look like there would be any reason to not do it.
After 35 years, guaranteed pension for life, spouse still working, health insurance covered, private investments as well, your main concern should be his health. If the job is impacting his health, what does he need to do it for? What would be the reason for staying? Especially if he considers his job to be stressful. Stress is the last thing he needs.
Being a retired government worker as well- similar years of service and age- and having many friends and colleagues who retired under those circumstances- other than health- and two of my good friends have passed away, you just need to count your lucky stars. He is in an enviable position and now is the time for him to enjoy the fruits of his labor!
A pension unaffected by working longer, medical insurance covered, part time work offered. So work 20 hours or 40 hours for same pay and benefits. What is the question?
Did you just need some other jealous soul to read that back?
Taking the plunge into retirement is a major life decision. Why not solicit feedback before taking that final step ?
It's not so easy to do it and then reconsider with "oops, can I have my job back ?"
DH is govt employee with 35 yrs of service. His pension has reached the point where additional years of service in his current position will not impact the payout much. Health concerns are prompting an earlier consideration of retirement although SS (at 62) is still 4 yrs away. He can continue as a temp (20 hrs/wk - much more suitable to his overall health and well being) and total income with pension after taxes will be very close to present income. Medical insurance is covered as a retirement benefit. I'll continue to work indefinitely, but have 2 (private industry) pensions from 31+ yrs of total work when I do retire.
401k's are healthy, although always room for more.
We've read and researched for some time now, and cannot find a financial reason not to proceed with this. And we will be reviewing all details with our FA. But I wanted other thoughts on perhaps something we've not considered. Thanks in advance.
Health considerations are such that you should really consider. As a FERS employee he will get suppliment to tide over until 62 of about 60% of what he will get from SS at age 62. That ends then and you can either apply early for that or you can draw down on TSP/401k to replace that income and apply at FRA. Then at FRA another decision is needed as to whether or not to defer to 70 or take it. It all depends on your comfort level and your income stream.
Quote:
Originally Posted by HappyTexan
Taking the plunge into retirement is a major life decision. Why not solicit feedback before taking that final step ?
It's not so easy to do it and then reconsider with "oops, can I have my job back ?"
I completely agree with you. It is huge and why not get some input. DH and her need to make the choice but we out here have some experience and can help make the decision easier.
It sounds like you can retire financially. And if your husband will benefit healthwise by working part time, that sounds like a reasonable decision.
Hopefully you won't need to begin drawing on your investments and SS until at least 62 years old.
My questions about finances to verify are:
1) What percent of your current income comes from you and what percent from your husband?
2) What percent of your husbands income will he collect as a pension?
3) What percent of your husbands income can he expect working part time? (this is the amount at risk if it stops).
4) What percent of your current income will come from SS at age 62? (any age difference between you and husband?)
5) What percent of your current income will eventually come from investments? (401k etc, use 4% of total value for est).
6) You say you will work indefinitely, but what percent of your current income will come from your pensions when you do stop working?
Another Fed here and am curious if your husband already had the Fed retirement specialist do the retirement work sheet with various options ? Why I ask is things like the % of survivor's benefit your husband opts for, as well as continuing life insurance and at what % can really impact the bottom line. Here are the numbers from my work sheet if I opt to retire at 62 with 18 years of service. I do not think years of service has any impact on the health, dental, and vision premiums, and life insurance is calculated on salary. Not exactly sure how survivor's benefit is calculated. The life insurance premium does go down a bit once you reach age 65.
Survivor Benefit 100% - $195.94/month
Life Insurance 100 % - $228.77/month
BC/BS Standard/Family - $444.12/month - Plus 1 option will be available this coming open season which
hopefully will bring down the premium some.
Metropolitan Dental High/Family - $56.00/month
Vision/Family - $31.00/month
So, for me if I went with the above options that's $995.86 off the top not counting taxes.
Wish your husband the best in whatever choice he makes.
Sounds like a reasonable thing to do especially if the retirement schedule is likely to benefit him medically. As to exactly cost added and subtracted that is a matter of research often with assistance from employer. The main advice I have now and in in future with Medicare is health does not get better as we age generally and risk grows. That means planning even as to securing it into Medicare years in planning.I have seen the results in doing the research and planning and not.
DH is govt employee with 35 yrs of service. His pension has reached the point where additional years of service in his current position will not impact the payout much. Health concerns are prompting an earlier consideration of retirement although SS (at 62) is still 4 yrs away. He can continue as a temp (20 hrs/wk - much more suitable to his overall health and well being) and total income with pension after taxes will be very close to present income. Medical insurance is covered as a retirement benefit. I'll continue to work indefinitely, but have 2 (private industry) pensions from 31+ yrs of total work when I do retire.
401k's are healthy, although always room for more.
We've read and researched for some time now, and cannot find a financial reason not to proceed with this. And we will be reviewing all details with our FA. But I wanted other thoughts on perhaps something we've not considered. Thanks in advance.
Been there, done that and the results are Bada Bing!
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