"Trying out" Fed Retirement - is it better to retire or take LWOP?

[Anonymous]

As for the finances, talk to a financial planner. As for the psychology of retirement, you might judge your readiness after some extended annual leave, if you have it. For example, take 4-6 weeks off. I retired early, and it took me some time to truly feel retired because I kept feeling guilty about not working, even though the finances were fine. My impulse was to find another job. Finally, I realized my time was mine to do as I pleased.

[Anonymous]

This seems very strange. I can't imagine why an agency would grant you LWOP for 6 month or a year. If you want to see what its like then figure out what your income will be in retirement - there's lots of calculators out there that can help you figure this out. Then set up your paycheck so only that amount hits your checking account with the rest going in a separate savings account. Make sure to account for insurance costs etc.

[Anonymous]

If you take early federal retirement, it’s best to leave it at that and find something else to do. You need a clean break. With your pension, you will have the luxury of not prioritizing the highest-paying job. Try something you’ve always wanted to do.

[Anonymous]

I knw there were a lot of people at the FDIC who retired right before the crisis and were rehired to help with the crisis. So it happens, but they did need to apply for the new opening and be selected.

I agree with those who urge to you consider the differences between early and regular retirement. They are not insignificant.

[Anonymous]

This is a really dumb question OP. Come on. If you are that close to retirement you should know better.

[Anonymous]

OP, you sound unsure about the finances. If that’s the case, crunch some numbers or get help doing so. I wouldn’t plan to leave and return.

[Anonymous]

Anonymous wrote:This seems very strange. I can't imagine why an agency would grant you LWOP for 6 month or a year. If you want to see what its like then figure out what your income will be in retirement - there's lots of calculators out there that can help you figure this out. Then set up your paycheck so only that amount hits your checking account with the rest going in a separate savings account. Make sure to account for insurance costs etc.

? Agencies do this all the time if you are are a desired employee. Especially if you have a clearance.

[Anonymous]

OP here. I don't think I phrased my question well enough. I'm looking for folks to share experiences they've had retiring from a Fed position and then going back if they realize it was a mistake (for whatever reason, not necessarily financial).

I've done the financial calculations and I can retire at the minimal retirement age. But as most of you feds likely know, the difference between what I'll get at 57 and what I'll get at 62 is substantial. And who knows what the stock market will do to my TSP over the next 5 years (and yes, I've run monte carlo simulations, which all say I'll be "fine"). But life can be unpredictable and expensive.
I'm feeling very DONE right now so my gut is to go. But perhaps this feeling will pass, I do like the agency mission.

Plenty of folks at my work take LWOP. Many have also gone to private sector and then come back. I don't know many have retired and then come back.

I have talked to folks who retired at MRA, and no one has any regrets. Some do have other jobs to supplement income.

I guess part of the issue is that it's just tough to jump. Being a Fed I'm a bit risk-averse.

[Anonymous]

Anonymous wrote:OP here. I don't think I phrased my question well enough. I'm looking for folks to share experiences they've had retiring from a Fed position and then going back if they realize it was a mistake (for whatever reason, not necessarily financial).

I've done the financial calculations and I can retire at the minimal retirement age. But as most of you feds likely know, the difference between what I'll get at 57 and what I'll get at 62 is substantial. And who knows what the stock market will do to my TSP over the next 5 years (and yes, I've run monte carlo simulations, which all say I'll be "fine"). But life can be unpredictable and expensive.
I'm feeling very DONE right now so my gut is to go. But perhaps this feeling will pass, I do like the agency mission.

Plenty of folks at my work take LWOP. Many have also gone to private sector and then come back. I don't know many have retired and then come back.

I have talked to folks who retired at MRA, and no one has any regrets. Some do have other jobs to supplement income.

I guess part of the issue is that it's just tough to jump. Being a Fed I'm a bit risk-averse.

I’ll be in the same boat in a year. I totally get what you are saying about wanting to try it on for size. And feeling done now. If others in your agency have gotten LWOP granted I would go for it. My agency would think I was nuts—staffed too close to the bone to let someone walk off for a bit.

[Anonymous]

First, if you leave, retire, so you can take your medical insurance with you. If you just leave and return, you may have to reestablish 5 years of medical insurance before you can retire with it. Second, too many people stay too long. If you can afford it, leave. Otherwise, there’s always another dollar to make. No matter when you retire, your salary will always be more and your pension could be larger. What matters is your ability to lead the life you want to live. Third, as you say, after some time off, you might want to do something else, and it may provide some extra funds. Finally, retirement expenses can be whatever you want them to be. If you’re risk adverse, make sure your home is paid, consider moving somewhere where property and/or state taxes are lower, etc. The point is, you can always adjust your spending. At your age, time is precious. Do something you want to do with it. Good luck!

[Anonymous]

I was just talking to someone about this at work. I would take a leave of absence, if you can pull it off, of about a month. See how it goes, how you feel etc.