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

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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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.[/quote]

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:[i] 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.[/i]

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

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