Hmmmmmm.....I'm ready to retire at 57, but as a federal employee on FERS working another 28 months (til 60) will increase my pension 50% (from $22k to 32k), add $10,000 a year in transition pay (until I collect ss at 62), and give me 150k/year in salary while my youngest son is in college.... Given that my 40-something fiance is still working full time and going to school, I'll probably wait a couple of years..... Then again, with a $20k (cola'd) widowers' annuity, 700k in house equity, and three times that in liquid assets, it's awful tempting to quit sooner.... I'm hoping my agency will have an early out, which would eliminated the penalty for retiring before 60!