Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-20-2021, 08:28 AM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 10,774
Quote:
Originally Posted by RAE View Post
I retired from the fed. govt. (under CSRS) about 5 months before reaching age 55. I already had more than 30 years of service, and was just waiting until I reached 55 (for normal retirement eligibility), but they offered me an "early out" a few months early, so I took it. I have no idea what percentage of my regular salary my pension was, but like Donheff, I had carefully determined my expenses (and other sources of income), and pretty much knew that I would be okay.
It is pretty straightforward. You can look at the amounts for the first 5, years, the second 5 years, and then all the years thereafter. Or just remember that they total up to 56.25% for 30 years. Add 2%/yr for any additional years worked beyond 30 (including a credit in months or years for unused sick leave). I ended up with 31 years - so 58.25%. The dollars were calculated on that percentage times the high three average salary but that was almost the same as ending salary for me. Then they took out 10% to guarantee my wife a survivor annuity when I kick. So take home ended up at 52.425%.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-20-2021, 09:25 AM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 6,975
Quote:
Originally Posted by Music Lover View Post
Sure, but considering how many people there are that have no savings, having a govt pension is probably the best that they can do. This site is different...there are a lot of high achievers on this site that had the means to save $2, $3, $5 million for retirement.



But not everyone has that opportunity. I know several people who couldn't save a dime but were able to retire only because of their govt pension. I never made a lot of money yet was the first one of all my friends to retire, and many of them made a lot more than me.


For me, having pension and SS gave me confidence to take substantially more risk with the 401k.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 04-20-2021, 12:26 PM   #43
Thinks s/he gets paid by the post
 
Join Date: Aug 2016
Location: Northern Virginia
Posts: 4,837
Quote:
Originally Posted by Music Lover View Post
Sure, but considering how many people there are that have no savings, having a govt pension is probably the best that they can do. This site is different...there are a lot of high achievers on this site that had the means to save $2, $3, $5 million for retirement.

But not everyone has that opportunity. I know several people who couldn't[m didn't save a dime but were able to retire only because of their govt pension. I never made a lot of money yet was the first one of all my friends to retire, and many of them made a lot more than me.
FIFY.

I think discipline and goal orientation are the large variables.

Lots of high earners spend all they make and more, and plenty of folks of less means save, invest and stay invested over years to a comfy retirement.

And that discipline is needed with pensions highly endangered (though most US workers never had access to them).
Montecfo is offline   Reply With Quote
Old 04-21-2021, 04:44 AM   #44
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 738
Quote:
Originally Posted by jazz4cash View Post
For me, having pension and SS gave me confidence to take substantially more risk with the 401k.
I'm in the same boat here... now to learn more
old medic is offline   Reply With Quote
Old 04-21-2021, 07:52 AM   #45
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Location: the prairies
Posts: 4,195
Another good thing about being a govt retiree...when the topic of "how much is enough" comes up, most of us have an entirely different answer. "Enough" was the day I was eligible to retire with an unpenalized pension. OMY syndrome was never a factor.
Music Lover is offline   Reply With Quote
Old 04-21-2021, 08:12 AM   #46
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Location: Crownsville
Posts: 3,004
This was awhile back, but at the end of 2012, we had a lady retire, who was under the old CSRS plan, and had one year under the max in. I always used to think you had to have 40 years, but I think it's actually 42, to get the full 80% of your best three years?

Anyway, at this point she was about to turn 78, and her career had been on cruise control for years. I remember her saying that she decided to go out at 78%, rather than 80%, because something had changed...maybe they were going to make her pay more for health insurance or something like that? But, she just decided it wasn't worth it, to stay an extra year for another 2%.

I don't know what her financial situation was, otherwise, but I know she was a widow, and might have gotten something from that. She also had a fairly nice, upscale home in Crofton, Maryland, that backed up to a golf course, and I'm sure was long since paid off. So, she was doing pretty well.

Well, presuming she's still alive, that is. She'd be 86 now. I looked up her house online, and it shows it's still in her name, just in a family trust. I tried googling her name with obituaries and nothing came up. So, hopefully she's enjoying those twilight years!
Andre1969 is offline   Reply With Quote
Old 04-21-2021, 08:36 AM   #47
Recycles dryer sheets
 
Join Date: Nov 2015
Posts: 310
Quote:
Originally Posted by Music Lover View Post
Another good thing about being a govt retiree...when the topic of "how much is enough" comes up, most of us have an entirely different answer. "Enough" was the day I was eligible to retire with an unpenalized pension. OMY syndrome was never a factor.
I just can't imagine working that long. The day I hit pension and lifelong FEHB eligibility, and not a day more. Even with the 25% reduction in the pension. I honestly don't even know if I can make it that long. The nice part is that there being so many different agencies, you can try different things over a career, but to do the same thing for 20+ years, ugh, the thought is exhausting.
teej1985 is offline   Reply With Quote
Old 04-21-2021, 08:44 AM   #48
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Location: the prairies
Posts: 4,195
Quote:
Originally Posted by teej1985 View Post
I just can't imagine working that long. The day I hit pension and lifelong FEHB eligibility, and not a day more. Even with the 25% reduction in the pension. I honestly don't even know if I can make it that long. The nice part is that there being so many different agencies, you can try different things over a career, but to do the same thing for 20+ years, ugh, the thought is exhausting.
My retirement age without penalty was 55...long enough but still early enough for me. I actually left 15 months prior to 55 and held off collecting my pension until the non-penalty phase was reached. I never would have made it to 60, I would have left and taken the penalty.
Music Lover is offline   Reply With Quote
Old 04-21-2021, 09:28 AM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 6,047
Tee, I did the same job for 19 years and still do it on a consulting basis which has been 9 years. But I went to graduate school in a small highly specific field to be able to do it. Teaching is a new gig just in retirement which was great fun while it lasted.
Teacher Terry is online now   Reply With Quote
Old 04-21-2021, 09:31 AM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 6,975
Quote:
Originally Posted by Andre1969 View Post
This was awhile back, but at the end of 2012, we had a lady retire, who was under the old CSRS plan, and had one year under the max in. I always used to think you had to have 40 years, but I think it's actually 42, to get the full 80% of your best three years?

Anyway, at this point she was about to turn 78, and her career had been on cruise control for years. I remember her saying that she decided to go out at 78%, rather than 80%, because something had changed...maybe they were going to make her pay more for health insurance or something like that? But, she just decided it wasn't worth it, to stay an extra year for another 2%.

I don't know what her financial situation was, otherwise, but I know she was a widow, and might have gotten something from that. She also had a fairly nice, upscale home in Crofton, Maryland, that backed up to a golf course, and I'm sure was long since paid off. So, she was doing pretty well.

Well, presuming she's still alive, that is. She'd be 86 now. I looked up her house online, and it shows it's still in her name, just in a family trust. I tried googling her name with obituaries and nothing came up. So, hopefully she's enjoying those twilight years!
I certainly hope so! Living in this area, I know a dozen or so people like that including some relatives. Some also that worked at megacorp many years ago were working for less than the pension.....didn't condsider they'd no longer need to pay FICA or CSRS retirement contributions. I realized they generally:
a) don't have any resource like this forum
b) never tried to figure out what their expenses would be
c) have no life outside work
d) have adult children, grandchildren or other relatives to support
or
e) never figured out how to live on 100% of their income so the idea of living on 80% terrifies them.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 04-21-2021, 04:25 PM   #51
Recycles dryer sheets
 
Join Date: Nov 2015
Posts: 310
Quote:
Originally Posted by Music Lover View Post
My retirement age without penalty was 55...long enough but still early enough for me. I actually left 15 months prior to 55 and held off collecting my pension until the non-penalty phase was reached. I never would have made it to 60, I would have left and taken the penalty.
You're lucky. If I work 20 years, I can defer and take unreduced at 60 but I won't get the retiree health insurance. If I work less than 20 years, it gets deferred to 62 for unreduced.

I have to work until 57 if I want the retiree health insurance and it would have a steep 25% penalty.
teej1985 is offline   Reply With Quote
Old 04-21-2021, 04:34 PM   #52
Recycles dryer sheets
 
Join Date: Apr 2021
Location: Sherman Oaks
Posts: 62
It's what kept us cops on the job for 25+ years. Why else would we stay.
jr6035 is offline   Reply With Quote
Old 04-21-2021, 04:41 PM   #53
Thinks s/he gets paid by the post
Calico's Avatar
 
Join Date: Apr 2012
Posts: 2,489
Quote:
Originally Posted by jr6035 View Post
It's what kept us cops on the job for 25+ years. Why else would we stay.
Yup.

The pension is what kept me at my mini-corp job for 25 years, through good bosses, bad bosses, and one truly nasty boss.

Now, on the first of the month when that pension check hits the bank, I smile and kick back. Putting up with the occasional craziness was worth it in the end.
__________________
"Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things you only hoped for." - Epicurus
Calico is offline   Reply With Quote
Old 04-21-2021, 05:47 PM   #54
Thinks s/he gets paid by the post
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 2,394
I was a federal employee for about 6 years but left and cashed out my pension. DH stayed and was in CSRS from 1972 til 1990 when he left for the private sector for 10 years. He then returned to the same agency at his same GS level as CSRS Offset for an additional 8 years until full retirement in 2008 with all the bennies. So with his first service period, military time and second period of service, he logged over 28 years and retired at age 61 with, as I recall over 60% of his high 3, after the reduction for survivor benefit. Also because he paid into SS from 1990 through 2008(plus a few years before starting federal service), at the max rate, he has SS, with a small WEP penalty. BTW, there are 2 bills in Congress with bipartisan support aimed at removing or drastically reducing WEP which would also increase federal retirees checks. Anyone affected by WEP should contact their Congressmen/Senators and lobby them to support the legislation.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 04-21-2021, 06:19 PM   #55
Thinks s/he gets paid by the post
martyp's Avatar
 
Join Date: Sep 2010
Location: Bangkok
Posts: 1,263
I retired at 55 when my pension benefit = the portion of my paycheck that I was already living on. I was in the last 2 years of my mortgage. To compensate for the lack of mortgage interest deduction I was saving a hefty portion of my paycheck into my retirement account. When I retired I stopped saving that money and of course no longer had to pay into social security. I knew that two years later I would no longer be paying a mortgage and at 62 I would start taking Social Security. On top of that my pension has cost of living adjustments. Ten years into retirement it has all worked of just fine.
__________________
Happy, Wild, and Free
martyp is offline   Reply With Quote
Old 04-21-2021, 07:29 PM   #56
Thinks s/he gets paid by the post
 
Join Date: Oct 2014
Posts: 1,219
Quote:
Originally Posted by teej1985 View Post
There is nothing to be gained by waiting until 63. She would defer to 62 for her full pension.
Thanks. I couldn't remember if it was 63 or 62. Apparently it is 62. At 49 she isn't even thinking about it yet. But, like I mentioned, she will punch out sometime in the next few years. 55 at the absolute latest.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. New target 202?.-

-"Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Old 04-21-2021, 08:03 PM   #57
Thinks s/he gets paid by the post
RAE's Avatar
 
Join Date: Jan 2005
Location: northern Michigan
Posts: 2,190
Quote:
Originally Posted by Andre1969 View Post
This was awhile back, but at the end of 2012, we had a lady retire, who was under the old CSRS plan, and had one year under the max in. I always used to think you had to have 40 years,

but I think it's actually 42, to get the full 80% of your best three years?

Yeah, a former co-worker from our agency also worked there for about 42 years before he retired. He did get the max. pension, as I recall, but there is no way I would have worked there that long. I put in 31 1/2 years, and got a much lower pension than he did, but the value of those extra 10 years of freedom was worth a whole lot more to me than the extra $$ would have been. But everybody is different..........this guy did not have a lot of hobbies or interest outside of work, so for him, I guess working all those years is the way he wanted to spend his time.
RAE is offline   Reply With Quote
Old 04-21-2021, 09:10 PM   #58
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Location: the prairies
Posts: 4,195
I also had another benefit from my govt employment...compressed work hours. We had a 37.5 hour week but were allowed to work 9 hour days. I'd work Mon - Thur 9 x 4 = 36 for 3 weeks and the 4th week would work 6 hours on Friday to balance to 150 hours.

So for most of my entire career I only worked 1 Friday a month and had 3 day weekends 3 times times a month, 4 days weekends when Monday was a holiday. I was also able to combine my extra days off and long weekends to maximize my time off. For example, end work on a Thursday, Friday off, weekend, Monday holiday, Tue - Thur vacation time (27 hours), Friday day off, weekend. Back to work Monday. I'd get 10 consecutive days off using just 27 hours of vacation.

Even if not taking vacation time, end work on Thursday, off Friday, weekend, Monday holiday, work Tues - Thur, Friday off, weekend, back to work Monday. That's a 10 day stretch working only 3 days.
Music Lover is offline   Reply With Quote
Old 04-22-2021, 03:37 AM   #59
Full time employment: Posting here.
 
Join Date: Feb 2019
Location: St Pete
Posts: 666
Planning 47 this year with 23 years Fed. Figure the deferred pension will be worth about 7-12K in today's dollars depending how the next 13 years play out - not enough to make much difference but a bit of a cushion if 2021 turns out to be a new historical worse time to retire. Hard to walk away from the golden handcuffs but 10 more years suffering the bureaucracy and incompetence to die rich seems like a bad deal. Back of envelope, I'd have 2-4X what I have now (savings and pension value) if I waited till 57 at which time FERS would cover all/nearly all of my projected expenses. Maybe my 57 year old self will wish for that money but I'm hoping he'll be happier that he got a decade of freedom and better mental and physical health before he turned 57.


Seems like most GovFIRE folks retire "early" at 57 or have benefits from prior military service (also seems everyone where I work is counting down to that magic birthday even though many have the military pension/Tricare). How many other career civilians broke the Golden Handcuffs walking away without an immediate annuity or FEHB?
FLSUnFIRE is offline   Reply With Quote
Old 04-22-2021, 07:10 AM   #60
Full time employment: Posting here.
 
Join Date: Jul 2020
Posts: 738
Quote:
Originally Posted by Music Lover View Post
Another good thing about being a govt retiree...when the topic of "how much is enough" comes up, most of us have an entirely different answer.
The other side of that coin is as a Local Gov Employee... We have learned to manage on less money
old medic is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Government's New Plan for Retirees Includes Pink Slime, Horse Meat, & Horse Hockey mickeyd FIRE and Money 63 04-04-2012 01:43 PM
Free Credit Reports Mandate From the Government ShokWaveRider FIRE and Money 16 07-12-2005 02:01 PM
Best Way to Get that Government Job Craig Young Dreamers 13 05-02-2005 09:21 PM
Opinions on state/fed government jobs wildcat Young Dreamers 13 04-14-2005 09:02 AM
Does it Make Sense to Get a Government Job? Craig Other topics 18 02-16-2005 06:54 AM

» Quick Links

 
All times are GMT -6. The time now is 02:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.