Fed — retire at 30 yrs, before 62?

[Anonymous]

Title mostly says it all.

I’ll hit 30 years of Fed employment at age 57. Are there any disadvantages to retiring then? Would I continue to receive health-care benefits?

My husband and I have plenty of money and no mortgage, so we won’t be dependent on my pension. But I do want the healthcare and I also don’t want to retire before age 62 if it involves walking away from significant benefits.

Thanks.

And FYI—I’m 50 now, so this option no longer seems super long away.

[Anonymous]

Yes you can if you don’t care about reduced pension. You don’t get 10% bump and you also don’t get COLA adjustments until you hit 62

[Anonymous]

I plan to do this. At 57 I’ll have 35 years. I will probably seek out a new, less intense job though to work a few more years.

[Anonymous]

Have you been getting healthcare through the government for the past five years?

[Anonymous]

Anonymous wrote:Have you been getting healthcare through the government for the past five years?

This is VERY important. Five years out you must be enrolled in FEHB either through you or your spouse.

I plan on likely retiring then, in a couple of years, although I have dependents so it has me rethinking. Just worn out, and am willing to give up the extra pension. Definitely won’t make it to 62, maybe 59 or 60. Spouse eager for me to retire.

[Anonymous]

I think the big hit is no COLAs for 5 years depending on what inflation looks like at that point. You also get the SS supplement until 62.

Not getting the 10% bump isn't a huge deal. If your pension is $50K that's a $5K per year loss, not much in the big picture. You're also giving up a significant percentage of your remaining healthy years to get it.

[Anonymous]

What are the conditions for the 10% bump?

[Anonymous]

Anonymous wrote:I think the big hit is no COLAs for 5 years depending on what inflation looks like at that point. You also get the SS supplement until 62.

Not getting the 10% bump isn't a huge deal. If your pension is $50K that's a $5K per year loss, not much in the big picture. You're also giving up a significant percentage of your remaining healthy years to get it.

when your household income goes down to 1/2-1/3 of what it used to be, 5k does matter.

[Anonymous]

Anonymous wrote:Yes you can if you don’t care about reduced pension. You don’t get 10% bump and you also don’t get COLA adjustments until you hit 62

I thought if you had 30 years, there was no reduction?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes you can if you don’t care about reduced pension. You don’t get 10% bump and you also don’t get COLA adjustments until you hit 62

I thought if you had 30 years, there was no reduction?

PP you are responding to. I should have said "smaller pension" vs "reduced pension". You don't get penalty (a reduction) but you are walking away from extra money you can get if you wait until 62

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes you can if you don’t care about reduced pension. You don’t get 10% bump and you also don’t get COLA adjustments until you hit 62

I thought if you had 30 years, there was no reduction?

PP you are responding to. I should have said "smaller pension" vs "reduced pension". You don't get penalty (a reduction) but you are walking away from extra money you can get if you wait until 62

Got it, thanks.

[Anonymous]

You can go into Employee Express and get a report generated that runs the numbers for you, even this far out. Note that the exact particulars will change as you draw closer (generally go higher).

You could also see a financial planner. Bottom line, you leave money on the table but only you can determine if it is “worth it,” viable with whatever lifestyle you hope to maintain. If you can afford it, I’d say go. A few thousand per year does add up, on the one hand, but your days on earth as a healthy, active person are also numbered.

[Anonymous]

If you have some fun plans, go ahead an retire early and do them while you are healthy. You will probably start seeing a lot of your peers dropping dead in their late 50's and early 60's. If you don't have anything better to do, keep working.

[Anonymous]

Do any feds have great resources to learn about retirement? Like how it effects you if you retire at 57 but don’t take money out until 62?

[Anonymous]

Anonymous wrote:Do any feds have great resources to learn about retirement? Like how it effects you if you retire at 57 but don’t take money out until 62?

most people take retirement seminars. look for those