Reply to 58 and no savings and no pension

Forum Index » Money and Finances

Reply to "58 and no savings and no pension"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Get a government job asap for the retirement.  You can owe the IRS and work for the feds as long as you are in a payment plan.  After 6 years, you are entitled to a retirement with the feds.  If you worked till 70, you might get about 10% or so of your pay for the rest of your life, plus SSA.  It's better than nothing.  [/quote]

It won't really help.  Most Fed jobs now are no longer on CSRS or CSRS-offset, but are now FERS, which is essentially a glorified 401K program.  Yes, there are some additional basic benefits to FERS, but not enough to help a late employee.  The basic benefits are 1% per year of service of your average of the three highest salaries in your career.  So, let's say this employee starts as a civil service at 59 and retires at 67.  If he made $100K average, then his annual dispensation from FERS benefts will be $8K annually.  And the FERS basic benefits are counted against SS, so that means that he'll get $8K but will get $8K less Social Security.  If your FERS payment is higher than your SS payment, than you earn all of your SS payment and FERS will cover the balance of your retirement payout above SS.  So the basic benefit will not increase his monthly income.  The only difference will be where the money comes from.  And then he'll have the TSP (which is the 401K part of the plan) on top of that.  Not really different than if he starts a 401K or IRA now and makes pre-tax deposits to the account.[/quote]

Thank you for posting this because I was confused by the numerous people on this site saying "WE HAVE TWO PENSIONS."  I just read someone saying on the money forum, "WE HAVE FOUR PENSIONS."  When I told DH this, who worked for the Feds for nearly a decade, two decades ago, he said no way, that even then the govt didn't have a real pension program.  Since he's turning 50, maybe these people are all 55+.  He has his TSP, but I'd wondered what pension means these days.  [/quote]

Please go back and read the retraction. FERS does have a pension, not generous like CSRS, but it has a pension.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics