When is Enough Enough? When to Retire as Federal Employee

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I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

[@b.coxemba6799]

The older you are the less money you spend, mostly because you can't do much. On average as people ages especially past 75-80, health both physical and mental tends to deteriorate more frequently. So there a natural shift from enjoying life and retirement, to managing health and old age. Key is when your retirement income equal your net income or greater - you should be able to retire comfortably.

[@itguru2037]

You are so right

[@phillylady]

This is totally dependent on your health as you’re likely to spend more on healthcare as you age.

[@itguru2037]

I’m retiring to Thailand. Money will not be an issue

[@johnochoa2203]

Iam retiring in 4 years....at age 57 with 27 years of federal service....the three extra years to make it 30 is not worth it. Zero debt, no kids, no wife, and I own my home.

[@RichardH423]

You need 30 years to retire at 57. You can do a postponed retirement under MRA +20 at 57.

[@erickarnell]

I can retire at my minimum retirement age of 57 with a reduced pension even if I haven't reached 30 years in service.

[@RichardH423]

@@erickarnell oh yes that's right. Good luck to you!

[@jimmywalters3071]

Same here .. no debt, paid off home - or can pay it off now .. 2 trucks, including 23 that I can pay off now ... no kids, no wife .. just 2 more years to go... GS 12. I don't mind getting a part time fun job. I think you need 30 years at 57 for regular retirement or age 60 with at least 20 service time .. or they deduct 5% per year for each year under age 62.

[@bucklaughlin906]

Will you still get FEHB?

[@401SNelson]

7 working days remain, 31 may 2024 is my retirement date.

[@omardeveraux1418]

Congrats on your retirement.....

[@leonardhusser5167]

Excellent points you want to be able to enjoy life while you still can what's the point of working until you can't enjoy your retirement like your in a wheelchair my body started talking to me at 60 with 35 years of service and management and the office politics started getting worse so i packed it in and I'm very happy it was the best decision ever

[@happilife2222]

I am feeling burnt out. I wish I could retire sooner so I can enjoy life. For now taking as much AL and SL to keep my sanity until I figure out the right time for me to retire.

[@eandrgoodwin]

Cuz when you have enough, then enough is enough, and you can say enough to your boss!

[@bucklaughlin906]

I can retire in two years at age 57 and 30 yrs of service, with FERS Supplement for five years. Not mentioned in the video is opportunity cost. If you keep working after MRA, you are working for a fraction of your salary. Life is short.

[@rotaman8555]

I’m at the same place. I can retire at 57 in three years. I’ve run all the numbers and I end up working 40 hours a week for $10K more in retirement and it just doesn’t seem worth it to me. I can work part time doing something fun and have more money and more time to enjoy life. Or not work at all and still enjoy life. I’m looking to get out as soon as I am eligible, thank the Lord.

[@Royale_with_Cheeese]

I retired at 62 because I could. I have a healthy savings account as well as a very healthy TSP. Not even going to apply for SS until 70. Married, no kids.

[@jefferywalton8176]

I'd get it coming while it exists. Time waits for no man.

[@b.coxemba6799]

I would take social security soon as possible, even if not necessary. Invest it or save it. At least someone besides uncle Sam can inherit it. Average break even point is age 81. Not much enjoyment at that age, if you make it.

[@Royale_with_Cheeese]

@@b.coxemba6799 I have two thoughts on waiting until 70, and one of them concerns your suggestion of investing. If you're going to take it and invest it, are you going to invest EVERY penny of it? For 8 years, are you going to take the payment and invest all of it every month? I doubt it. If you leave it there for 8 years, you ARE investing it. Every penny of it, in a guaranteed 8% return. Can you guarantee 8% every year for 8 years? It's not like you're going to get the full larger benefit ONLY after breaking even at 81 or 82 when you're too old to enjoy it. You're going to get that larger (largest possible) benefit starting at 70 when, hopefully also still healthy enough to enjoy it. If I should pass before reaching 82 and leave some money on the table, as the saying goes, I have thoughts on that too. Looking at my lifetime contribution to Social Security, I paid in 113K. I will make that back in 32 months. The rest is gravy. Also, if I pass, I won't need the money.

[@Royale_with_Cheeese]

@@b.coxemba6799 I have thoughts on those points. If you want to take it at 62 and invest it, you would have to commit to invest every penny of it every month. If you leave it for 8 years, you're guaranteed to get 8% growth for that duration. It's not like you only get to "enjoy" the larger monthly payments once you hit your break-even age of 81 or 82. That larger monthly payment begins at age 70 when, hopefully, you're still healthy enough to enjoy it. I looked up my lifetime contributions to Social Security. $113K. If waiting until 70 to take the benefit, I would get that back in 32 months. The rest is gravy. I know that if you pass before you break even with what you would've gotten if taken earlier, but when you're gone, do you really need the money?

[@b.coxemba6799]

@@Royale_with_Cheeze On average as people ages especially past 75-80, health both physical and mental tends to deteriorate more frequently. So there a natural shift from enjoying life and retirement, to managing health and old age. Most people are sick for a long period of time before they die. Everyone situation is different. Depending upon your meaning of enjoyment and experience. I suggest you visit a few nursing homes and senior citizens communities to get a more clear picture or reality. Seven years can play a role.

[@tedmartens5260]

Humble brag - I have 4 working days. Then I'm done after 23 Army yrs and 14 FERS years. Postponing pension until 62. Mil retirement and VA fixed income allow me to pass the baton at work and start living!

[@tedmartens5260]

BTW, tell uncle Dan I said hello

[@calvinhaynes5781]

That’s amazing!!!! Congrats and happy retirement……

[@omardeveraux1418]

Congrats to you....I hope you're healthy, happy and enjoy every minute!!!! Me next lol.....

[@DexterTheDuck]

I'm a government employee and I've had enough...

[@itguru2037]

Enough is when your budget when working is the same amount when retired. If you fly first class when you’re working then you only retire when you have enough to fly first class in retirement

[@andyroo9381]

i will retire at first chance.

[@scottgold1054]

Yep glad I started young 56.5 is young enough

[@pattyk8594]

Another great video thank you!

[@PlanYourFederalBenefits]

Glad you enjoyed it!

[@jamiecruze5208]

Dallen, have you ever used the "New Retirement" tool? I'm using the trial version for some planning. While not being built for FERS, it does seem to be able to add pensions like FERS and the supplement if needed. Wondered if you have used it and if so, would you recommend it? Love your videos and other resources.

[@SpookyEng1]

I am a fed, love new retirement!

[@PlanYourFederalBenefits]

I appreciate the feedback. And the "New Retirement" tool is a great resource.

[@alwells7629]

Can I sue opm??

[@spicyduck3710]

God please!! Only 3 more years 🙏

[@johnholmes3279]

Answer: AS SOON AS FREAKING POSSIBLE! first.

[@delbrett2257]

Since the C fund didn't start till 1988, I DOUBT the 80"s were that great lol.

[@scottgold1054]

Retired with 34 years at 56.5 glad i did the place is going down the toilet.

[@jamesharper5332]

My biggest mistake was getting out of the C fund because i panicked. Moved the money to G fund. This was early in my career. Now im at 37 years of service. I should be one of those "TSP millionaires " . Im close to it though but still shaking my head everytime thinking...."what if".

[@calvinhaynes5781]

I’ve tried to talk multiple coworkers about this but they look at me like I’m from another planet. There would be so many TSP millionaires on my job if they had just put there money in the C fund and forgot about it…..

[@jamesgonzales5586]

Good advice. Don’t beat yourself up about it. Not everyone can handle the swings of the stock market. You did a great job saving and now passing along some wisdom.

[@calvinhaynes5781]

@@jamesgonzales5586 I understand; during Covid I lost $85,000. It wasn’t easy to look at. The only thing I did different was increase my contribution. Now I’m halfway to a million. I have 12 more years before I’m 62…..peddle to the metal!!

[@cionyholloway1114]

Story of my life

[@Rick-of6gx]

59 for me, does give me 30 years. Although if I had invested much earlier in my career then I would probably do 57, my MRA.

[@mcz68l]

It will always be an individual answer, unless you are married then it will be two people who will need to sit down and crunch the numbers.

[@scottgold1054]

Nah wife has to work to pay for the insurance lmao

[@joselitostotomas8114]

A seven figure TSP account would give you at least $40k annually. You can start drawing social Security at age 67 and you draw 100% of what you're entitled, regardless on whether you're working or not. I'll have to think it over if I win the lottery.

[@Dave-sw2dm]

You didn't mention the pension component. 3 buckets to pull from. A 30 year career should provide enough to replace your current take home. A forty year career would give you the ability to spend more in retirement than when you were working.

[@johngrattan302]

It’s kinda like getting married and starting a family😬 You are really never ready😎

[@qtip7345]

I plan to retire in the next three years. I will be 57 by then, with 38 years government service.

[@guysevedz3581]

I am leaving at 60, putting my tsp into a regular ira, investing it into bond mutual funds, and living off that dividend with the Fers pension and the Fers supplement that stops at 62

[@BurtGordon-o2u]

Go with bonds and dividend paying stocks in a 40-60 or 60-40 mix. You’ll get near as much income and much less likely to burn through your investments.

[@calvinhaynes5781]

Still have 12 years to go. Turn 50 this year; $450,000 in TSP. 70% C, 20% S, 10% I.

[@zenawarrior7442]

Great points. Been thinking of this myself. Thanks again 🏜🌛😊

[@PlanYourFederalBenefits]

Wonderful!

[@Kenbot2]

I plan on retiring at 62. My only fear is how much tax will come out of my Social Security retirement check from the Postal Service and my TSP. I never found a good way to estimate that when I add my numbers up, they look great then I stress out over taxes, I wish there was a way to know our federal tax and also my California state tax at least an estimate

[@richardb9419]

There is - you can use current rates and brackets and apply that to your estimated SS+TSP+pension. Then there are many sources online where you can find the effect of the potential 2026 reversion to higher rates. The brackets are generally wide so this will give you an idea whether you are looking at 24 or 28 or 32 or 33%. The difference between each isn’t that huge , so you can easily get a reasonable ballpark or at least a range.

[@Kenbot2]

24% to 33% is huge if you’re Social Security is around $1900 that is some outrageous taxes

[@b.coxemba6799]

​@@Kenbot2The taxable bracket range is huge. For example taxable income between $23,000 and $94,000 will be 15% for married filing jointly.

[@SpookyEng1]

Do a simulated tax return in turbo tax using your retirement income. How do you do your taxes now?

[@SpookyEng1]

@@Kenbot2if you are getting 1900 a month you are not in the 24% tax bracket 🙄

[@kevinedward-jt2vs]

I am amazed how many people can't do basic math and plan for their retirement.

[@dunesmom7990]

Enough! Well maybe...

[@christinekellyrose9435]

If Trump wins ...18 months to go. God forbid Trump loses. I retire immediately and get the H*ll out of this Blue State and get to Florida asap.

[@David-cv3bp]

You can leave my time. If you base it on a President that’s poor planning.

[@christinekellyrose9435]

@@David-cv3bp silly response

[@David-cv3bp]

@@christinekellyrose9435 you must be talking about your original response.

[@christinekellyrose9435]

@David-cv3bp nope yours..let know how I can get your 18 months of leave...I'll take it. And your response is irrelevant except for the leave your offering. Content Creator Hawes agreed with me😁