Federal Retirement Question

[Anonymous]

Anonymous wrote:

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?

The day you retire is the best time to start taking one’s pension. /s

You really need to sit down and do some math on all your options. Or find a professional to do it for you. All the people in this thread telling you to wait until 62 to get the extra 0.1% aren’t doing the math, they’re just assuming. If you already have 30+ years at 58, then you’ll have ~35 years at 62. With a high-3 of $100k, that’d be an extra $3500/year tacked onto your pension if you wait (plus the extra 4% with four more years of service). But to get that extra $3500/year with the 0.1% bonus, you have to give up the FERS Supplement. And with 30+ years of service your supplement should be close to $1500/month with a $100k high-3. That’s $72,000 in supplement over 4 years PLUS your pension.

Drawback on the Supplement: If you get another job, the supplement is reduced by $1 for every $2 you earn over $21,240 (2023 limit). Unlike Social Security benefits, this reduced supplement doesn’t get added back later on so it’s in your best interest to not go over it.

how do you factor in loss of your COLA and lifetime loss of not getting that COLA?

By enjoying retirement and not stressing over milking every last dollar on the way out the door. COLA definitely won’t be 7.7% every year. And I’d fight back by putting that $72,000 head start to work. If inflation is high, interest rates will also be high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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?

The day you retire is the best time to start taking one’s pension. /s

You really need to sit down and do some math on all your options. Or find a professional to do it for you. All the people in this thread telling you to wait until 62 to get the extra 0.1% aren’t doing the math, they’re just assuming. If you already have 30+ years at 58, then you’ll have ~35 years at 62. With a high-3 of $100k, that’d be an extra $3500/year tacked onto your pension if you wait (plus the extra 4% with four more years of service). But to get that extra $3500/year with the 0.1% bonus, you have to give up the FERS Supplement. And with 30+ years of service your supplement should be close to $1500/month with a $100k high-3. That’s $72,000 in supplement over 4 years PLUS your pension.

Drawback on the Supplement: If you get another job, the supplement is reduced by $1 for every $2 you earn over $21,240 (2023 limit). Unlike Social Security benefits, this reduced supplement doesn’t get added back later on so it’s in your best interest to not go over it.

how do you factor in loss of your COLA and lifetime loss of not getting that COLA?

By enjoying retirement and not stressing over milking every last dollar on the way out the door. COLA definitely won’t be 7.7% every year. And I’d fight back by putting that $72,000 head start to work. If inflation is high, interest rates will also be high.

LOL ok

[Anonymous]

I’m with those saying wait until 62 to retire.

Think about it like this. You get 1% for every year up to 57. Then those years 57-62 gives you 3% a year. Those three years of working give you 15% more on your pension. That’s a huge bump.

[Anonymous]

OP it depends on your financial situation.
1. how much $ do you need to live annually?
2. Will you be able to meet that number with your pension + non-profit job + TSP withdrawals + SS supplement (from ages 58-62)?

Don't give up on your dream job behind because of odd advice from DCUM. Yes, your pension will be higher at age 62. But perhaps because of large TSP or low spending that doesn't matter.

And if you get access to FEHB healthcare coverage so long as you had it for the 5 years prior to your retirement date, so at age 58 or 62 or whenever.

Good luck. Talk to HR. Figure out your own financial situation. If you are secure enough, follow your dreams.

[Anonymous]

it depends on whether Op wants to leave $ for her kids or not. if so, then it would be wise to wait until 62. if not, then op has more than enough to survive. i can certainly understand her dilemma.

[Anonymous]

Anonymous wrote:OP it depends on your financial situation.
1. how much $ do you need to live annually?
2. Will you be able to meet that number with your pension + non-profit job + TSP withdrawals + SS supplement (from ages 58-62)?

Don't give up on your dream job behind because of odd advice from DCUM. Yes, your pension will be higher at age 62. But perhaps because of large TSP or low spending that doesn't matter.

And if you get access to FEHB healthcare coverage so long as you had it for the 5 years prior to your retirement date, so at age 58 or 62 or whenever.

Good luck. Talk to HR. Figure out your own financial situation. If you are secure enough, follow your dreams.

You don’t get the FERS supplement if you work another job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP it depends on your financial situation.
1. how much $ do you need to live annually?
2. Will you be able to meet that number with your pension + non-profit job + TSP withdrawals + SS supplement (from ages 58-62)?

Don't give up on your dream job behind because of odd advice from DCUM. Yes, your pension will be higher at age 62. But perhaps because of large TSP or low spending that doesn't matter.

And if you get access to FEHB healthcare coverage so long as you had it for the 5 years prior to your retirement date, so at age 58 or 62 or whenever.

Good luck. Talk to HR. Figure out your own financial situation. If you are secure enough, follow your dreams.

You don’t get the FERS supplement if you work another job.

You can receive the supplement while working another job as long as you don’t go over the earnings limit at the new job, which is currently ~$20k. If you do earn more than $20k the supplement starts getting reduced $1 for every $2 earned, and goes away entirely if you make >$45k.
https://stwserve.com/fers-supplement-earnings-test/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP it depends on your financial situation.
1. how much $ do you need to live annually?
2. Will you be able to meet that number with your pension + non-profit job + TSP withdrawals + SS supplement (from ages 58-62)?

Don't give up on your dream job behind because of odd advice from DCUM. Yes, your pension will be higher at age 62. But perhaps because of large TSP or low spending that doesn't matter.

And if you get access to FEHB healthcare coverage so long as you had it for the 5 years prior to your retirement date, so at age 58 or 62 or whenever.

Good luck. Talk to HR. Figure out your own financial situation. If you are secure enough, follow your dreams.

You don’t get the FERS supplement if you work another job.

You can receive the supplement while working another job as long as you don’t go over the earnings limit at the new job, which is currently ~$20k. If you do earn more than $20k the supplement starts getting reduced $1 for every $2 earned, and goes away entirely if you make >$45k.
https://stwserve.com/fers-supplement-earnings-test/

And unlike SS, it doesn’t get add back on later. That money is gone.

[Anonymous]

Anonymous wrote:I’m with those saying wait until 62 to retire.

Think about it like this. You get 1% for every year up to 57. Then those years 57-62 gives you 3% a year. Those three years of working give you 15% more on your pension. That’s a huge bump.

Where are you getting 3 percent for this years and 15 percent more overall?

[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.

Nope.

[Anonymous]

Anonymous wrote:I’m with those saying wait until 62 to retire.

Think about it like this. You get 1% for every year up to 57. Then those years 57-62 gives you 3% a year. Those three years of working give you 15% more on your pension. That’s a huge bump.

Why? I'm confused by the bolded part.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m with those saying wait until 62 to retire.

Think about it like this. You get 1% for every year up to 57. Then those years 57-62 gives you 3% a year. Those three years of working give you 15% more on your pension. That’s a huge bump.

Why? I'm confused by the bolded part.

I think that pp meant since last 5 years you get 15% more pension (which I think it’s more), you get 3% more per year. Not sure if math is correct but I think that’s what pp was trying to say

[Anonymous]

Special Supplement Calculation -- (Years of Credible Service/40) * Your age 62 SS

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m with those saying wait until 62 to retire.

Think about it like this. You get 1% for every year up to 57. Then those years 57-62 gives you 3% a year. Those three years of working give you 15% more on your pension. That’s a huge bump.

Why? I'm confused by the bolded part.

I think that pp meant since last 5 years you get 15% more pension (which I think it’s more), you get 3% more per year. Not sure if math is correct but I think that’s what pp was trying to say

But why? Why in the last five years do you get 15 percent more pension?

[Anonymous]

This is executive branch only. FYI for new people. Legislative is different.