“Lifer” feds, did you/are you planning to retire on schedule?

[Anonymous]

My kids will be done with college when I am 49, our house will be paid off when I am 58, and I will be eligible be retire that same year. However, I plan to retire at 62-63 with 34-35 years to service. Because we have kids young, we didn't starting maxing our retirement till 33 (H) and 37 (me), so I want to use those later year to serve as a means to play catch up.

[Anonymous]

I’d hit 30 years at 56. My youngest would still be in college for another year. So no, won’t retire as soon as I’m eligible. And even if I do retire from the fed shortly thereafter, I don’t plan to stop working. Like another PP, we didn’t start maxing our retirement accounts until we were 33/32.

[Anonymous]

Anonymous wrote:I'm in your same position and hoping to stay on until I'm at least 62. While I could collect FERS at 57 that would replace just 30 percent of my final salary. You can't take anything out of your TSP without a penalty until age 59.5 and you can't collect social security until 62 so even with my mortgage paid off and my kids out of the house at 57 I can't live on 30 percent of my final income. Plus if you go beyond your initial retirement date you get a higher percentage, the multiplier by year is 1.1% rather than 1% per year. Adding my TSP and SS should get me pretty close to my final salary for life if I stay until age 62, which should be quite do-able.

This makes a lot of sense (and thanks to the later poster who pointed out that you can withdraw TSP funds without penalty at 55 instead of the normal 59.5 that applies to 401(k)s. I had not known that).

Out of curiosity, if you're in a role such as GS-15 attorney at a federal agency (as is my DH), does anyone really retire at age 57? I can see it if you have the ability to join a law firm and generate business, but otherwise 57 seems young to retire (unless your spouse is a big earner and you can just travel).

Finally, forgive my ignorance, but what's the advantage of waiting the 30 years until you're allowed to retire? Is there some benefit you get (apart from just the additional 1percent?) Thank you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm in your same position and hoping to stay on until I'm at least 62. While I could collect FERS at 57 that would replace just 30 percent of my final salary. You can't take anything out of your TSP without a penalty until age 59.5 and you can't collect social security until 62 so even with my mortgage paid off and my kids out of the house at 57 I can't live on 30 percent of my final income. Plus if you go beyond your initial retirement date you get a higher percentage, the multiplier by year is 1.1% rather than 1% per year. Adding my TSP and SS should get me pretty close to my final salary for life if I stay until age 62, which should be quite do-able.

This makes a lot of sense (and thanks to the later poster who pointed out that you can withdraw TSP funds without penalty at 55 instead of the normal 59.5 that applies to 401(k)s. I had not known that).

Out of curiosity, if you're in a role such as GS-15 attorney at a federal agency (as is my DH), does anyone really retire at age 57? I can see it if you have the ability to join a law firm and generate business, but otherwise 57 seems young to retire (unless your spouse is a big earner and you can just travel).

Finally, forgive my ignorance, but what's the advantage of waiting the 30 years until you're allowed to retire? Is there some benefit you get (apart from just the additional 1percent?) Thank you.

I have been in the government for 11 years and the only time I have seen someone with 30 years retire before 60 is law enforcement (where there is a requirement to retire from active LE work at 57). I am sure it happens, I just haven't seen it. Also, I suspect if you are eligible by your mid-late 50s and want to keep working, most would rather still with the job they are in than starting over.

If you don't hit 30 years and MRA, you may end up with deferred retirement: If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

https://www.opm.gov/retirement-services/fers-information/eligibility/

[Anonymous]

I’ve not seen many (any?) attorneys peace out at 30 years. I’ve been a fed attorney for 12 years. I’ve seen people in othe job series counting the days to hit 30 years. And many of those leave the second they hit 30 years. But none of those types seem to live in the DC area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm in your same position and hoping to stay on until I'm at least 62. While I could collect FERS at 57 that would replace just 30 percent of my final salary. You can't take anything out of your TSP without a penalty until age 59.5 and you can't collect social security until 62 so even with my mortgage paid off and my kids out of the house at 57 I can't live on 30 percent of my final income. Plus if you go beyond your initial retirement date you get a higher percentage, the multiplier by year is 1.1% rather than 1% per year. Adding my TSP and SS should get me pretty close to my final salary for life if I stay until age 62, which should be quite do-able.

This makes a lot of sense (and thanks to the later poster who pointed out that you can withdraw TSP funds without penalty at 55 instead of the normal 59.5 that applies to 401(k)s. I had not known that).

Out of curiosity, if you're in a role such as GS-15 attorney at a federal agency (as is my DH), does anyone really retire at age 57? I can see it if you have the ability to join a law firm and generate business, but otherwise 57 seems young to retire (unless your spouse is a big earner and you can just travel).

Finally, forgive my ignorance, but what's the advantage of waiting the 30 years until you're allowed to retire? Is there some benefit you get (apart from just the additional 1percent?) Thank you.

At 62, the 1% changes to 1.1%, I believe for the entire federal career.

[Anonymous]

DH is three years away from retirement! I cannot believe it! It flew by. FBI can retire with full benefits after 20 years. He will be 54. I'm not convinced he will actually retire. He loved his job. But it's weird to know that he could. We don't feel that old.

[Anonymous]

Similar age as OP and also have 15 years til retirement. No rental income, but I’ve been a good TSP saver and my husband is also set up well for retirement, so we should be ok. I Could very well retire in my late 50s and then pivot to something else in the private or nonprofit sector...or even start my own business. But might also stick it out til age 62 so that I get the 1.1%/year, and then switch over to something else. Ideally, I’d like to work part time doing something interesting into my early 70s at least, but we’ll see how that all goes.

[Anonymous]

For 1% versus 1.1% difference, see:

https://plan-your-federal-retirement.com/fers-retirement-62-and-20-bonus/

[Anonymous]

I'm probably too young to decide for certain, but I will be 54 when I hit 30 years. I really doubt I'll retire at that point, unless at that point in time the feds are offering some very cushy "early" retirement package to get rid of people like me.

[Anonymous]

Anonymous wrote:For 1% versus 1.1% difference, see:

https://plan-your-federal-retirement.com/fers-retirement-62-and-20-bonus/

Thank you. I think they selected a bad example to show the benefits. If you are 61 (as in the example), you better stay one more year to get 1.1%. You'd be a fool not too. If someone is 56 and qualify to retire, would you wait 6 more years? or would you go? This is more interesting example than comparing 61 vs 62+

[Anonymous]

Anonymous wrote:

Anonymous wrote:For 1% versus 1.1% difference, see:

https://plan-your-federal-retirement.com/fers-retirement-62-and-20-bonus/

Thank you. I think they selected a bad example to show the benefits. If you are 61 (as in the example), you better stay one more year to get 1.1%. You'd be a fool not too. If someone is 56 and qualify to retire, would you wait 6 more years? or would you go? This is more interesting example than comparing 61 vs 62+

There's a 5% per year penalty for those retiring before a certain age. This seems to apply even for those who meet the minimum age, I can't be certain. https://www.fedweek.com/reg-jones-experts-view/avoiding-the-fers-age-reduction-penalty/

The retirement rules are very complicated. And when you are talking surviving spouse benefits, that adds to the mix of confusion.

Be on the look out for retirement seminars from your fed spouse's agency. These seminars generally allow spouses to attend.

[Anonymous]

Fed atty here. I'll probably retire around age 52-55. I just don't see myself wanting to keep on putting in the grind in my late 50s after I'm already financially secure. I will just defer the FERS annuity until age 62.

FWIW, I'm currently 46 with about 14 years at DOJ. So maybe I'll change my mind. But, I'm thinking I'll just do another 6-8 years and then call it a career.

[Anonymous]

Anonymous wrote:Fed atty here. I'll probably retire around age 52-55. I just don't see myself wanting to keep on putting in the grind in my late 50s after I'm already financially secure. I will just defer the FERS annuity until age 62.

FWIW, I'm currently 46 with about 14 years at DOJ. So maybe I'll change my mind. But, I'm thinking I'll just do another 6-8 years and then call it a career.

Do you understand that you would be giving up the right to FEHB if you retire before you reach your MRA, which I expect is 57.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Fed atty here. I'll probably retire around age 52-55. I just don't see myself wanting to keep on putting in the grind in my late 50s after I'm already financially secure. I will just defer the FERS annuity until age 62.

FWIW, I'm currently 46 with about 14 years at DOJ. So maybe I'll change my mind. But, I'm thinking I'll just do another 6-8 years and then call it a career.

Do you understand that you would be giving up the right to FEHB if you retire before you reach your MRA, which I expect is 57.

Yes, I am aware