The Easiest Ways Federal Employees Can Retire Early

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[@IOSALive]

Haws Federal Advisors, I'm hooked on your videos, keep them rolling

[@PlanYourFederalBenefits]

Glad you like them!

[@FIRE_DrNinjaTurtle]

I retired early and kept my medical benefits and kept my full pension. Delayed retirement at 58.5 years, but you have only 18 months to keep healthcare. I paid my part and the feds part to the National Science Foundation, then at 60 my pension kicked in and my health insurance went back down.

[@dsmith1934]

That’s not retiring early. Early retirement should be before MRA

[@jeffreyblanton9877]

@@dsmith1934it sounds like his MRA was 60 because he probably had less than 30 years but more than 20. Just guessing but I know this retirement system pretty good. In the case he would have retired early. I may try this since I will have 39 years at 57. Leave at 55.5 and pay my on insurance. The only down side is that I wouldn’t get my social security supplement but at least it’s an option.

[@AD-ui2pz]

@@jeffreyblanton9877you should stay till 57 for the FERS supplement unless you really have to go -i have 33 years now and will go after i turn 57 in 3 years to get the FERS supplement and i’ll work part time maybe under the annual limit so I can prolong taking anything from my tsp account

[@David-cv3bp]

@@jeffreyblanton9877 it’s Called “cobra” if you are paying for the insurance and not receiving a pension. It plain terms he resigned and when eligible he applied for the pension. Very few could do that without having additional funds coming in.

[@davidrex9592]

Thank you for the constant advice.

[@edhcb9359]

FERS is a pretty weak pension as far as public sector pensions go.

[@concken1]

compared to what? What is best?

[@edhcb9359]

@@concken1 FERS pays you 1% to 1.1% back per year worked vs most state and local pension systems that pay you 2% to 3% back per year worked. So for example, if you worked 30 years for the feds and got 1.1% back per year, a person who made $100k per year peak earnings would get $33k per year as their pension. A pensioner who also spent 30 years working and earned $100k peak at a state that pays 2.5%(for example) would get $75k per year in pension.

[@lashadow8]

SOLID breakdown and explanation, thank you!

[@jennifermayo8293]

Wonderful explanation!

[@PlanYourFederalBenefits]

Glad it was helpful!

[@zenawarrior7442]

My mom got an early out from the VA, loved it. Seems they don't offer these as much tho? Thanks Dallen again 😊

[@RichFitzwel]

Great content. Can you do one on FERS disability retirement

[@dsmith1934]

Probably useful but this to is not an early retirement since to collect your benefits you have to wait until you’re 62. Or go back to work

[@PlanYourFederalBenefits]

Yes, here it is: kzbin.info/www/bejne/pKG2koVnrL-qgJo&pp=ygUwaGF3cyBmZWRlcmFsIGJlbmVmaXRzIEZFUlMgZGlzYWJpbGl0eSByZXRpcmVtZW50

[@DanKulibert]

I always think of Deferred as the Death of additional benefits

[@joghog]

Good way to remember it since it's easy to get Deferred confused with the Postponed Retirement.

[@reidloscidem3562]

I'm always hoping for a VERA. 🙏

[@noblewv70]

Me too!!!

[@gregthomas2448]

I hit the lotto VERA/VSIP age 55 in 2022. Worked 21 to 55 34 years service. I reside in a no state income tax state. The VSIP was 17.5K after taxes and the special social security benefit (bridge) started when I turned 56.5 years of age. My advice make sure you load up in thrift, have no debt and having another revenue stream would be ideal. The bridge is subject to the earnings test. Not sure why because OPM funds that anyway not social security. Seems a bit unfair. Other than that happy tanned and relaxed 👍🏆 🏝️

[@ray.d.oeaux1230]

Your videos are extremely informative. Can you provide the link for the MRA +10/Postponed?

[@PlanYourFederalBenefits]

Thank you very much. Here it is: kzbin.info/www/bejne/jGGUkGV_ia6Xd5Y&pp=ygUnaGF3cyBmZWRlcmFsIGJlbmVmaXRzIE1SQSArMTAvUG9zdHBvbmVk

[@ray.d.oeaux1230]

@@PlanYourFederalBenefits Thank you.

[@zx2kain]

What about a special provisions, like a LEO or fire fighter, that can't see anymore or has a health issue?

[@PlanYourFederalBenefits]

Yes, it could be possible for them.

[@Fro_Low]

Q: I currently have around $500k in the Traditional TSP, but am seeing the advantages of having a Roth pot to help offset some taxes in the retirement years. I know I can do Roth conversations after retirement if I move to an IRA, but with 6-9 years potentially left, should I start putting my into the Roth TSP to build that pot of money up or just stay with the Traditional and pay the Piper down the road?

[@SpookyEng1]

I am until the end of 25 because tax rates will most likely revert to 2017 schedule (higher) after 2025. You can always put 25-50% in Roth to get the benefits of both and not take the huge tax hit now. Most convert after retirement and before SSA when I come is lower.

[@David-cv3bp]

Leave it where it is and just allocate new money to the Roth

[@scottschuler7940]

Could you cover discontinued service retirement in a future video? We are about to go through a RIF.

[@PlanYourFederalBenefits]

Certainly, we can also meet with you one on one if you would like. Feel free to book a meeting here: app.hawsfederaladvisors.com/whatservicemakessense?_gl=1*1txxop1*_ga*MjEyNjM2NDU1Ny4xNzE3NDM1OTAw*_ga_S1DEXGL1X8*MTcxODkwOTkyNS4yNC4wLjE3MTg5MDk5MjUuMC4wLjA.

[@BMWi-nc7nv]

Can you included same info but with LEO

[@PlanYourFederalBenefits]

Yes, here it is: kzbin.info/www/bejne/qGLPkGaVrrifn5o&pp=ygUzaGF3cyBmZWRlcmFsIGJlbmVmaXRzIHNwZWNpYWwgcHJvdmlzaW9ucyByZXRpcmVtZW50

[@concken1]

How does the Military Deposit play into this?

[@PlanYourFederalBenefits]

Great question. Here is a great video about that: kzbin.info/www/bejne/pX_amH-Dm7WBnM0&pp=ygUvaGF3cyBmZWRlcmFsIGFkdmlzb3JzIGJ1eWluZyBiYWNrIG1pbGl0YXJ5IHRpZW0%3D

[@tala9499]

For the deferred option, how do I calculate my retirement I would receive when I hit 60. Let’s say I have 28 years of service

[@delbrett2257]

you would get about 28% of your base pay but no health care benefit.

[@PlanYourFederalBenefits]

Great question. Here is a great video to look at for that: kzbin.info/www/bejne/hJfMinyJgLB4f7c&pp=ygUpaGF3cyBmZWRlcmFsIGJlbmVmaXRzIGRlZmVycmVkIHJldGlyZW1lbnQ%3D

[@mattbrown7961]

Question I’d like to see for SEC employees. Are there advantages in going all the way to mandatory vs retirement at eligible age? I’m a LEO .

[@glasshalffull2930]

I’m retired LEO from a different agency. The vast majority either retire at 50 and get a second career or the go to the 57 mandatory. Advantage to going to mandatory is that you get an extra 1% towards your pension for each year you continue to work. Another advantage is the TSP catchup provision after 50. LEOs also get the Supplemental Social Security, but if you get another job then if you get pay above (I think) $24K then it is reduced by 50% for every dollar over.

[@mattbrown7961]

@@glasshalffull2930 actually there is no reduction in the supplemental until you meet your MRA. Hence you are leaving money on the table. So I’ve been told.

[@glasshalffull2930]

@@mattbrown7961 That’s not what I heard, but I never exceeded the limit after I retired, so I cannot be sure. Have you checked out FERSGUIDE? It is produced by a retired FBI agent who was a CPA and has made it his life’s mission to completely understand the federal employment system. The guide is about $15.

[@rola4721]

What happens if you have 20 yrs combine federal service. And decide to leave service early, but not 62?

[@jimmywalters3071]

You can retire normally with at least 20 years of federal service at age 60. It 's best to wait till you are 62 as you got 10% more in retirement $$ so 1.1% instead of 1% of your high 3 year salary.

[@delbrett2257]

You still get a pension at age 60, so if you are younger the tsp savings each month might work till the pension starts at age 60 but not automatically.

[@delbrett2257]

Also no health insurance benefit.

[@scottgold1054]

Yep 60 is earliest.

[@David-cv3bp]

@@jimmywalters3071 , its not really 10% as one thinks it. It is one tenth more for each year, which at 20 yr for age 62 is 22% of pay and not the 20% . So it is 10% more of your 20% only.

[@cpaul57]

Question???? I did 4 years active duty and then transfered to the air guard. If I bought back my active duty time and air guard tempAGR tours, will i lose out on my military retirement?

[@PlanYourFederalBenefits]

Great question. You will be able to buy back those 4 years. But, once you retire from the FERS, you cannot receive your military retirement.

[@cpaul57]

@@PlanYourFederalBenefits I didn't retire from the military side. So if I bought back the 4 year active duty time, I will lose out on the 4 years towards military pension?

[@David-cv3bp]

@@PlanYourFederalBenefits , I disagree with your remark. Active duty retirement is offset, not Reserve or National guard retirement, which isn’t paid until a person is atleast 60 on most cases. I know so many who get 5 sources of income. FERS, SSA, TSP, MILITARY RESERVE AND DISABLED VETERAN (va)

[@jakej5855]

If you hit your mra (57) with 22 years and decide to draw pension is it the 5% per year reduction...until age 60. So 15%...since you have 20 plus years or is it still 5% per year to age 62...

[@PlanYourFederalBenefits]

Great question. It is still until age 62.

[@KillerBandaid]

What about retired military that transitioned to GS?

[@reidloscidem3562]

You could buy your years back, but I rarely see that since it is not beneficial for the employee.

[@glasshalffull2930]

I know a retired FBI/military guy and he said it is very common for those with former military service to buy their time back.

[@SpookyEng1]

If you are getting a mil retirement the math on the buyback usually doesn’t make sense unless there is a huge disparity between the two grades (like a retired E-6 and then a GS-14 in Civil Service)

[@David-cv3bp]

@@glasshalffull2930 , some of those agents retired from Reserve military. The FBI has a maximum entry age and a retired military person normally would not meet the age requirement. Now days they do subtract some military years off your age, but still it’s hard to get hired that way.

[@sandragibson2221]

Im 63 with 35 years of Federal service I plan to work 3 more years. Will i be abe to retire with my Federal BCBS health insurance?

[@SpookyEng1]

Yes

[@ykcirsedroc30]

I’m 58 years old with 28 yrs creditable service, and want to use MRA +10 postponed retirement. I’m unclear if I will need to wait until I’m 60 or 62 years old to receive retirement benefits? Appreciate any input on this matter. Thanks.

[@kenhart2516]

If you can go to 60 you qualify for unreduced pension and FERS supplement. That’s a good deal imo. You are almost there

[@ykcirsedroc30]

Thanks buddy!! 🎉

[@adriennesmith2133]

Yes, get the supplement before 62. I wish I did. But when you reach 62 the supplement stops because you are eligible for social securty.

[@David-cv3bp]

@@adriennesmith2133 the supplement is only for individuals who are eligible for immediate pension, not delayed, not MRA+10,

[@soldierryemusic]

Ok let’s see if I understood. I’m planning on leaving the government at 51 with 30 years. I can do either postponed or deferred. Was hoping to get pension at 57 but that means I would get penalized until 60?

[@PlanYourFederalBenefits]

Great questions. You cannot retire with a postponed retirement at age 51. Only a deferred. You would have to wait until your MRA (probably age 57) to get a full retirement. In your situation, you wouldn't qualify for a postponed retirement (MRA + 10) retirement because you would have 36 years of service at your MRA.

[@soldierryemusic]

@@PlanYourFederalBenefits oh got it! Ok thank you so much! So then I could get a fers supplement at 57 which can cover my penalties.

[@David-cv3bp]

@@soldierryemusic at 57 with 30 years there is no penalty, that is a full retirement with supplement

[@drmitofit2673]

My similar age colleague hired around the same time, opted to go half-time at the mid peak of his career at 10 years service for "family/work balance". I worked full-time continuously and retired at 30 years service at age 58, which everyone said was "early" for an MD. My pension plus FERS supplement and 100% C fund TSP are ridiculously generous. It will take him 50 years working to reach 30 years of service (i.e. forever), although he could retire at 62. Plus, I imagine that my TSP now is bigger than his will ever be. Who do you think has the better family/work balance?

[@ronisley9716]

How is it that I can retire with a pension, although reduced, at 58 years and 20 years pluses 2 months?

[@delbrett2257]

If you waited till age 60 and used thrift savings for income till 60, there is no deduction but a little less each month for not working the last few months.

[@PlanYourFederalBenefits]

You cannot retire with a full retirement with 20 years of service at age 58. You can at 60 though.

[@ronisley9716]

@@PlanYourFederalBenefits yes I have figured that out. I will retire at 58 with 20 years service under the MRA + 10. I will get a reduced benefit. I can live with that.

[@javiersmith2216]

If my birthday is 25 dec. Can i walk out w an immediate fers retirement 31 dec.

[@Royale_with_Cheeze]

If your birthday is Dec 25th, you may be able to walk on water 😉

[@delbrett2257]

probably but how many years service and your age would be important to know for sure.

[@scottgold1054]

Depends on age and years.

[@wengs2004]

😆

[@MartinIrizarry]

In 2027, I will reach my MRA at 57, with but I will have 27yrs of service. Will my pension be reduced if I retired at 57 with 27 yrs of service?

[@PlanYourFederalBenefits]

Great question. You will not be eligible for a full retirement at age 57 with 27 years of service. But, you could either do an MRA + 10 retirement and get your pension immediately, but it would be reduced by 25%. You could also do a postponed retirement and wait to get your pension until the age of 62 to avoid pension penalty.

[@MartinIrizarry]

Thank you for responding to my question. How about if i retire at MRA of 57yo and postpone the pension for three years. Then, I will have MRA+27 years of service and be 60y/o. Will the pension still be reduced?

[@David-cv3bp]

@@MartinIrizarry it’s not a retirement if you do not collect immediately and you may lose health benefits

[@jnm-eh6qt]

In other words, don't retire early unless you're offered a VERA, which will likely never happen.

[@dsmith1934]

Exactly, while I like this guys content it seems to be repetitive. If you need FEHB, then there is no way to retire earlier than MRA other than VERA, which they are not going to do for a long time. We can’t get enough new hires as is.

[@MH-yh8rz]

My agency offers VERA all the time, once or twice per year. They want to get rid of the high earners.

[@itguru2037]

@@MH-yh8rzwhat agency?

[@MH-yh8rz]

Federal court. The one I work at is always trying to get rid of the high earners due to the budget. I get the sense that management pressures some employees to take VERA. It always seems like there’s a mass exodus at least once per year around here.

[@jnm-eh6qt]

@@MH-yh8rz Amazing. I have 25 years of service and I have never seen a VERA offered.