Federal Retirement Question

[Anonymous]

Do any of you know whether one can take their Federal pension without taking the SS supplement? For example, I am eligible to retire when I am about 58. I would like to go do something else but in the non-profit area where I would not be making the GS15 salary I am now. I don't want to take SS until 65 or even 67 but I would like to take the pension part of my retirement when I retire so I can have the two income streams. If I'm not mistaken, if you take the SS supplement, I think you have to start taking SS at 62. (I could be mistaken about that)

Yes, I will be consulting my HR but I was wondering if any of you know anything about this issue. Thanks.

[Anonymous]

Supplement is totally separate from SS. It stops at 62 and you can get SS at any age. Your understanding is incorrect.

[Anonymous]

Getting the SS supplement is not the same as taking SS early. They are unrelated.

[Anonymous]

The bad thing that happens when you take federal retirement early is that you don't get cost of living increases until 62 for your pension (although you do get the social security supplement). When there are big increases because of inflation, like there have been lately, you miss out on those, and you only start getting them when you turn 62.

[Anonymous]

Anonymous wrote:Supplement is totally separate from SS. It stops at 62 and you can get SS at any age. Your understanding is incorrect.

+1. I think what you are thinking about OP is that the supplement stops at 62 because that is when you are eligible for SS and therefore the supplement is no longer necessary. However, that doesn't mean you have to take the supplement.

[Anonymous]

Anonymous wrote:The bad thing that happens when you take federal retirement early is that you don't get cost of living increases until 62 for your pension (although you do get the social security supplement). When there are big increases because of inflation, like there have been lately, you miss out on those, and you only start getting them when you turn 62.

Losing compounded COLA is a killer of your pension

[Anonymous]

OP here, so what is the answer? Defer everything until 62+ even if I want to go do something else? Wait until 62 to retire? I now understand the supplement piece, it just stops at 62 because, I'm then eligible for SS, regardless of whether i want to take it. When is the best time to start taking one's pension?

[Anonymous]

62 is the best time because in addition to the COLA's the formula is 1.1 instead of 1% for each year of work. But those aren't the only concerns. What is in your TSP, taxable accounts, will you have a mortgage, kids to put through college, etc?

[Anonymous]

Anonymous wrote:OP here, so what is the answer? Defer everything until 62+ even if I want to go do something else? Wait until 62 to retire? I now understand the supplement piece, it just stops at 62 because, I'm then eligible for SS, regardless of whether i want to take it. When is the best time to start taking one's pension?

If you want to do something else... .you CAN do that. The fed. gov. isn't chaining you down to stay. You can just delay taking your FERS retirement until 62. You can wait even longer to take SS.

[Anonymous]

Anonymous wrote:62 is the best time because in addition to the COLA's the formula is 1.1 instead of 1% for each year of work. But those aren't the only concerns. What is in your TSP, taxable accounts, will you have a mortgage, kids to put through college, etc?

Yes, it's a very personal decision.

[Anonymous]

Anonymous wrote:62 is the best time because in addition to the COLA's the formula is 1.1 instead of 1% for each year of work. But those aren't the only concerns. What is in your TSP, taxable accounts, will you have a mortgage, kids to put through college, etc?

The 1.1% vs. 1% of high three isn't based on being 62. It's based on having 20 yrs of service vs. having less than 20 yrs of service. If you have 20 yrs of service at age 59, you still get 1.1% of your high three.

[Anonymous]

Anonymous wrote:The bad thing that happens when you take federal retirement early is that you don't get cost of living increases until 62 for your pension (although you do get the social security supplement). When there are big increases because of inflation, like there have been lately, you miss out on those, and you only start getting them when you turn 62.

That depends on the agency and job. Law enforcement gets COLA immediately if you retire at 50.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here, so what is the answer? Defer everything until 62+ even if I want to go do something else? Wait until 62 to retire? I now understand the supplement piece, it just stops at 62 because, I'm then eligible for SS, regardless of whether i want to take it. When is the best time to start taking one's pension?

If you want to do something else... .you CAN do that. The fed. gov. isn't chaining you down to stay. You can just delay taking your FERS retirement until 62. You can wait even longer to take SS.

Why on earth would you leave federal government after minimum retirement age and delay taking retirement? I guess if you hate money?

[Anonymous]

Anonymous wrote:

Anonymous wrote:62 is the best time because in addition to the COLA's the formula is 1.1 instead of 1% for each year of work. But those aren't the only concerns. What is in your TSP, taxable accounts, will you have a mortgage, kids to put through college, etc?

The 1.1% vs. 1% of high three isn't based on being 62. It's based on having 20 yrs of service vs. having less than 20 yrs of service. If you have 20 yrs of service at age 59, you still get 1.1% of your high three.

This is so not true. I am 60 with 36 years of service, still can't get 1.1%.

[Anonymous]

OP here. Thanks for your answers. As I said in my original post, I want to go do something for a cause I believe in but the non-profit world won't pay me anything close to what I am making now. I thought I could use the pension to make up the difference but it may not make sense to do that.