U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-29-2015, 06:24 PM
 
1,825 posts, read 2,481,117 times
Reputation: 4143

Advertisements

Question for Federal Employees. I will have 20 years of creditable service at age 61. Does it make sense to retire early (i.e. Age 58), but defer taking my annuity until age 61; take the 15% hit for retiring early and begin drawing the annuity immediately; or continue to work until age 61. This would be based on the assumption that I have nonretirement assets that could cover me for that three year period. There would be no measurable difference in high-three salary computation. Medical insurance would be a non-issue as I am retired military, and have Tricare. Has anyone faced this scenario? What did you do? Would you do it again?

Last edited by dmills; 03-29-2015 at 06:55 PM..
Reply With Quote Quick reply to this message

 
Old 03-29-2015, 06:52 PM
 
Location: Sierra Nevada Land, CA
8,401 posts, read 9,145,702 times
Reputation: 13037
As a general rule, I would suggest the option that gives you the higher monthly income. That is what you will live on month to month. The concept of total lifetime income only makes sense if you are an accountant.

Why? Because what your monthly income amount is about is where you live. It is practical, not conceptual. It what pays the bills.
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 07:17 PM
 
89 posts, read 62,140 times
Reputation: 67
Hi, I co-op for NASA during my college years, pretty much a federal government employee, but obviously not continuously due to school for 6 years. I am looking to go back into the federal government again (the Navy). How do those co-oping years calculate into my retirement? thanks
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 07:50 PM
 
Location: San Diego, CA
495 posts, read 382,628 times
Reputation: 1217
Why 61? Wait another year and get a 10% higher monthly pension (high-3 x 1.1% instead of 1%)
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 08:45 PM
 
1,825 posts, read 2,481,117 times
Reputation: 4143
Quote:
Originally Posted by GuyInSD View Post
Because, I'm not even sure I want to wait until 61. Lol Financially, it is obviously better to wait as long as possible (even longer than 62), but money isn't everything. I'm just trying to look at options.
Reply With Quote Quick reply to this message
 
Old 03-29-2015, 09:09 PM
 
Location: Albuquerque NM
1,660 posts, read 1,525,919 times
Reputation: 3645
My FERS training manual indicates that if you want to take the annuity at age 58 with reduction, this would be an MRA + 10 Retirement and the annuity would be reduced 5% for each year under age 62 for a total of 20%, not 15%.

Also if you retire at age 61 with 20 years of service, you would be eligible for 1 year of the FERS supplement - about 50% of the estimated Social Security benefit at age 62 (e.g., $10K). This is the supplement to "replace" Social Security until you are eligible to file at age 62. With deferred retirement or MRA +10, you do not receive the supplement.

Last edited by ABQ2015; 03-29-2015 at 09:28 PM.. Reason: Added note on FERS supplement.
Reply With Quote Quick reply to this message
 
Old 03-30-2015, 07:30 AM
 
1 posts, read 1,059 times
Reputation: 10
Quote:
Originally Posted by ABQ2015 View Post
My FERS training manual indicates that if you want to take the annuity at age 58 with reduction, this would be an MRA + 10 Retirement and the annuity would be reduced 5% for each year under age 62 for a total of 20%, not 15%.

Also if you retire at age 61 with 20 years of service, you would be eligible for 1 year of the FERS supplement - about 50% of the estimated Social Security benefit at age 62 (e.g., $10K). This is the supplement to "replace" Social Security until you are eligible to file at age 62. With deferred retirement or MRA +10, you do not receive the supplement.
Yes, so true. I'm retiring at 60 with 20 due to the special supplement.
Reply With Quote Quick reply to this message
 
Old 03-31-2015, 09:22 AM
 
Location: USA
584 posts, read 908,804 times
Reputation: 443
Quote:
Originally Posted by ABQ2015 View Post
My FERS training manual indicates that if you want to take the annuity at age 58 with reduction, this would be an MRA + 10 Retirement and the annuity would be reduced 5% for each year under age 62 for a total of 20%, not 15%.

Also if you retire at age 61 with 20 years of service, you would be eligible for 1 year of the FERS supplement - about 50% of the estimated Social Security benefit at age 62 (e.g., $10K). This is the supplement to "replace" Social Security until you are eligible to file at age 62. With deferred retirement or MRA +10, you do not receive the supplement.
50%??....I thought it was 75-80%...hmmmm.

Thanks for the info.

Reply With Quote Quick reply to this message
 
Old 03-31-2015, 01:42 PM
 
Location: Albuquerque NM
1,660 posts, read 1,525,919 times
Reputation: 3645
Quote:
Originally Posted by cholo57 View Post
50%??....I thought it was 75-80%...hmmmm.

Thanks for the info.

The OP will have only 20 years. The FERS supplement is pro-rated based on a full career of Social Security being 40 years. So 20 years/40 years is 50%. Most retirees have career service of 30 years or more.
Reply With Quote Quick reply to this message
 
Old 03-31-2015, 02:37 PM
 
5,397 posts, read 6,536,800 times
Reputation: 10468
and if you get another job that exceeds $15K a year I think, the supplement is withheld. Goes back to the SS earnings thing.

OP, I would hang in as long as I could or until 62. if at all possible. some jobs are not worth the pain.

but good luck.

as a retired FERS employee, it was worth it to me
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top