Regardless of age it is so important to be metabolically healthy by dropping sugar and processed foods. At 59 I was sick and on 7 daily medications but now at 62 through fasting, intermittent fasting and eating keto I'm off all medications and 52 pounds lighter. No expenses for doctors or medications makes the retirement income last longer.
Hugely important. If you don’t have your health, you don’t have very much at all. Take care of yourselves and invest in your health so that you can enjoy your time here as best as possible.
I've watched a number of your videos and typically find them informative and easy to follow and understand. In this particular video, you ask the question of what age to retire as a Federal employee but completely omit the consideration of the FERS Supplement. You also use the phrase minimum retirement age or MRA, but you seem to be referring specifically to Social Security MRA, FERS MRA is actually typically between 55 to 57 depending on your birth year. Lastly you did not mention the .1 percent increase per year for FERS retiree's who wait until 62 (with at least 20 years). Taking the supplemental vs. staying to increase your 1% vs. waiting for the additional .1%, I would think are important variables in the "what age" equation. Again, very much enjoy your videos, keep up the great work!
Glad to hear the videos have been helpful. It's tough for me to capture every detail or variation in all videos or risk them being too lengthy, but you make great points--all valid considerations for a fed to take. Thanks for tuning in. -TG
Retired at 59 with 37 years of service. Loved the job but it was time to go. When my SS supplement expires at 62 I plan to wait until about age 67 to claim social security, and will pull extra out of my Thrift fund to make up the difference. I think I come out better in the long run that way but I understand how people can decide to take SS at 62 and draw less from their Thrift fund. If you're retiring before 62, your pension doesn't get a COLA until you turn 62 and that loss carries thru the rest of your life. But, you do get the gift of time. Good luck to all.
I just turned 62 and will be retiring in a few months with 15 years service. I plan on living on FERS and my military retirement until age 67 and then take SS. Looking forward to that 7.7% COLA in January.
Retiring at 60 with 40 years. These people have plucked my nerves. It is definitely time to go. Need peace of mind. I'll go and work somewhere else with hopefully a lot less drama.
Sorry to hear you've been having a hard time. We see many people retire when eligible and then choose to do something else with their time. Taking a phased approach to retirement can be a great strategy. Best of luck!
Thank you so much for your response. It's been a wonderful experience, but my leadership has unrealistic expectations. I'm a hard-working manager. They will miss me.
When should you retire? The correct answer is ASAP! I’d rather make huge budget cuts and downsize, instead of working a day past 60 at a job that will have me replaced as soon as I step out the door. Max out your TSP. Exercise every day. Eat healthy and moderately. You only live once. Guys, statistically speaking, you’re on borrowed time after 65. Don’t waste your last few years grinding away at a thankless job. Be with your family, travel, stop worrying if you’ll be able to get your vacation approved for that holiday getaway you want to plan.
Wise words! We obviously work with clients to help maximize their wealth, but “more money” isn’t the focus. Optimizing for happiness and fulfillment while remaining financially secure is the ultimate goal.
62 is the best age to retire…at least it is for me. Having the money while I’m young enough to enjoy it makes more sense to me than waiting until my 70s and then trying to have adventures around the world when getting around will not be as easy, that is if I am even alive then.
As soon as possible. That is my retirement date. As for SS many are not not very healthy myself included and am an RN so you have to be prepared to take early or wait year by year.
It's a complex decision, especially now with inflation so elevated, the value of a FERS pension is quickly eroded if you retire at the MRA and aren't eligible for a COLA until age 62. On the other hand, if you are only getting step increases every 2-3 years or none at all, then you really need to go at 62, because COLAs generally exceed pay raises when inflation is high. The spread between pay raises and COLAs has been about 7 percent over the past 2 years. That completely obliterates the benefit of a 1 or 1.1 percent increase in your base annuity for each additional year of service.
The part which is Art is a real challenge as work life culture and teamwork, seems to have changed so much in the past 5 years. Hold on or hold out, that is the question?
Great point. You should consider what still makes you happy. If you have the ability to be financially independent with a good retirement plan, then continuing to work should be your choice solely because you enjoy it! -TG
Glad you enjoyed. Generally leaving prior to MRA means you will be deferring benefits, and may potentially lose insurance coverage. I’m not certain about postal rules though.
At 30 years of USPS service you can retire at any age BUT because you are under 62 years of age you will receive a PERMANENT REDUCED deduction for every year before 62. Depending on your birth year, you need to hit your specific MRA and 30 years to receive the supplement. You may not be eligible for your health insurance benefits. You do a deferred retirement, which may or may not affect your health insurance since you have 30 years, and may also be required to get Medicare.
I would rather take my SSN at 62 or 63 and be able to enjoy the extra income while still middle aged and healthy and capable rather than getting more when I'm old and can't fully enjoy life. To me, receiving a high income in old age is just a waste of time because now your old and what can you do when your old besides sitting at home watching TV or your grand kids if your fortunate to have any. It would be the same as winning the lottery at 73 years old. Time wont.be on your side to enjoy spending all that money on yourself. And, I surely didn't work for 42 years to give my retirement to my kids.
About social security - I'm afraid to wait to take it, because isn't the social security system unhealthy - worried that my benefits will be reduced or won't last.
A lot of retirees share your concern. We’ve faced this before, however. The “solution” was to increase full retirement age and I think they’ll do the same again, as well as increasing SS tax and contributions by those still working. Hard to know if it’s a solution or just kicking the can down.
I work from home and really don’t do much of anything. I have a wonderful work life balance and do pretty much everything I want. If I want to take 5 weeks off to travel or just do nothing so be it. I’m 56.5 and in good health thus far so I just don’t see any point in retiring since I feel like I’m retired already 😂
Solid strategy! As I often jest, tell me how long you’ll live for and I’ll tell you the PERFECT date to take Social Security. Hindsight is always 20/20!
Not necessarily. Many of our clients have left prior to being fully eligible under normal FERS retirement rules. It just depends on your financial plan and how you've set things up to be able to make it work. Retirement planning is all about aligning your wealth to your decisions, not the other way around.
It’s not just years of service it’s also age as well. I have a family member with 32 years of service but is only 51. She can’t retire yet until at least 55 or 56 in order to get her full fers. FERS won’t be enough for her to live on so she is playing catch-up contributions with her TSP and focusing on getting out of debt.
@@westcoastmediasolutions Great point, the hurdle for retirement is both years-in-service as well as age. Special provisions can retire earlier, but everyone else's MRA is around 56/57. You can leave service beforehand, but it comes with certain costs. Thanks for bringing this up!
This is good, as are most of your videos, but it bothers me that somethings in some videos are not quite characterized correctly or fully depending on your point of view. It's one's monthly SS check that is reduced by 30% at 62 (the video makes it sound like you get 30% less of everything you paid in to SS and due over your lifetime, not accurate unless you die well before 78 and in that case you may have wished you took SS at 62). For most people over their lifetime they get pretty close to the same total dollar amount of SS paid over their lifetime, which is why the break even point of taking SS at the MRA/62 vs. waiting to the FRA or longer to 70 is in the 78-82 age range for most. It can be summed up as you get either lots of smaller dollar SS checks from 62 to death or fewer checks from FRA to death but at 30% higher value each month. I do agree 100% that taking a 30% cut at 62 reduces your buying power forever over your lifetime, and your spouse if they later are getting 1/2 of your SS (death benefit). Makes one wonder is that on purpose to subtly strike concern in soon to retire folks and drive business? Given all that it gives me pause every time I think of reaching out to RMA to discuss (and potentially hire) retirement forecasting/planning. I get that you can't cover every detail in your videos, and again they are always helpful, but in this case I think the info should have been expanded to include more details. Sorry if its a bit of a harsh comment.
Not harsh at all. You make great points. We're far from fear mongers. In fact, we're constantly looking for ways to help our clients retire sooner, spend more, and better enjoy their lives. But there's nothing subtle about taking SS earlier. The fact is that you receive less permanently, and we have to objectively look at this change inside someone's plan. The key question then, is whether this is materially less enough to impact financial independence in the long run. Many other variables influence this too, including how well of a saver someone has been during their working years. We've had some clients take SS as early as possible, others at 70, and everywhere in between. The point is that it's a completely personalized decision. Maybe I'll make another video going deeper into this topic, as I'm sure you're not the only one with additional questions. Hope this helps. -TG
If you have enough creditable service time, it can be a great goal to shoot for. However, it means needing to save more aggressively since you have a slightly longer retirement than most, and those last few years of working can really help a retirement plan.
My daughter is disabled and on SSI and SSDI. She can draw from my social security when I retire. Is this a good reason to take Social security at age 62?
Funny. I should have just enjoyed my first week of retirement (62)...even was offered a $25K buyout to skirt under the fence this week....and still, reluctantly, and now a bit regrettably, am going limp another year or two...we'll see. Congrats.
Interesting suggestion. That feature serves a few purposes. The first is it allows Social Security to keep and grow its balance for a few years long. The breakeven point for waiting until 70 is generally around 82-83 years old, so for that time Social Security was ahead of the game, while a participant gets to take home a bit more each month. What's the main reason you would suggest removing it? Curious on your thoughts! -TG
If you're forced into doing that, it's not the most ideal situation. The key here is to always have options. If you have a failed retirement plan, then you're forced back to work.
@@TheFedCorner I’m Not speaking about a failed attempt. I’m saying that many people retire from their careers and enjoy working so they continue to work in other fields. Retirement these days is overrated.
Love the yoda, I do
May the -force- FERS be with you.
Regardless of age it is so important to be metabolically healthy by dropping sugar and processed foods. At 59 I was sick and on 7 daily medications but now at 62 through fasting, intermittent fasting and eating keto I'm off all medications and 52 pounds lighter. No expenses for doctors or medications makes the retirement income last longer.
Hugely important. If you don’t have your health, you don’t have very much at all. Take care of yourselves and invest in your health so that you can enjoy your time here as best as possible.
As soon as I can.
I've watched a number of your videos and typically find them informative and easy to follow and understand. In this particular video, you ask the question of what age to retire as a Federal employee but completely omit the consideration of the FERS Supplement. You also use the phrase minimum retirement age or MRA, but you seem to be referring specifically to Social Security MRA, FERS MRA is actually typically between 55 to 57 depending on your birth year. Lastly you did not mention the .1 percent increase per year for FERS retiree's who wait until 62 (with at least 20 years). Taking the supplemental vs. staying to increase your 1% vs. waiting for the additional .1%, I would think are important variables in the "what age" equation. Again, very much enjoy your videos, keep up the great work!
Glad to hear the videos have been helpful. It's tough for me to capture every detail or variation in all videos or risk them being too lengthy, but you make great points--all valid considerations for a fed to take. Thanks for tuning in. -TG
Retired at 59 with 37 years of service. Loved the job but it was time to go. When my SS supplement expires at 62 I plan to wait until about age 67 to claim social security, and will pull extra out of my Thrift fund to make up the difference. I think I come out better in the long run that way but I understand how people can decide to take SS at 62 and draw less from their Thrift fund. If you're retiring before 62, your pension doesn't get a COLA until you turn 62 and that loss carries thru the rest of your life. But, you do get the gift of time. Good luck to all.
I just turned 62 and will be retiring in a few months with 15 years service. I plan on living on FERS and my military retirement until age 67 and then take SS. Looking forward to that 7.7% COLA in January.
Congrats on your upcoming retirement! Thanks for tuning in and best of luck! -TG
that 7.7% is proposed. not a sure thing.
@@yourmanzach2307 They just announced it's 8.6%
@@EatLeadPal for what? Federal pay raise?
As soon as I turn 57, I am retiring under FERS. I'll have 34 years of service with my military buyback and 100% P&T.
Retiring at 60 with 40 years. These people have plucked my nerves. It is definitely time to go. Need peace of mind. I'll go and work somewhere else with hopefully a lot less drama.
Sorry to hear you've been having a hard time. We see many people retire when eligible and then choose to do something else with their time. Taking a phased approach to retirement can be a great strategy. Best of luck!
Thank you so much for your response. It's been a wonderful experience, but my leadership has unrealistic expectations. I'm a hard-working manager. They will miss me.
When should you retire? The correct answer is ASAP! I’d rather make huge budget cuts and downsize, instead of working a day past 60 at a job that will have me replaced as soon as I step out the door. Max out your TSP. Exercise every day. Eat healthy and moderately. You only live once. Guys, statistically speaking, you’re on borrowed time after 65. Don’t waste your last few years grinding away at a thankless job. Be with your family, travel, stop worrying if you’ll be able to get your vacation approved for that holiday getaway you want to plan.
Wise words! We obviously work with clients to help maximize their wealth, but “more money” isn’t the focus. Optimizing for happiness and fulfillment while remaining financially secure is the ultimate goal.
@ my MRA 57 with 30 years of service. Get the supplemental until I reach 62, the SSA kicks in
Samesies
True. I retired about a month ago with 30.25 years of services at 56 and 7 months. We're fortunate to have fers supplement and tsp. Good luck!
Indeed, but just remember that SSA at 62 is a significantly reduced amount. Make sure that lesser amount is okay in your plan in the long run.
That’s assuming ssa is still around and paying. Don’t have to draw it at 62 necessarily too. Right?
@@Retired_Life_1 yes we are very lucky. I know people living just of social security. Not a good place to be at an elderly age.
62 is the best age to retire…at least it is for me. Having the money while I’m young enough to enjoy it makes more sense to me than waiting until my 70s and then trying to have adventures around the world when getting around will not be as easy, that is if I am even alive then.
Great point! That's why each plan is different -- it's all personal to everyone. What's right for you may be totally wrong for someone else!
My thoughts exactly. If you work through your 60's, you're likely losing your healthiest retirement years.
This was awesome! 70 is the long goal.
Glad you enjoyed!
Take as early as possible and invest it. thats my plan
Certainly an option that many take! Thanks for tuning in.
As soon as possible. That is my retirement date. As for SS many are not not very healthy myself included and am an RN so you have to be prepared to take early or wait year by year.
Thanks for mentioning that. Health is a big consideration when figuring our your Social Security and retirement strategies.
I received full retirement benefits at 60 years old, 24 years of service. (Except for social security, which I'll receive at 62).
It's a complex decision, especially now with inflation so elevated, the value of a FERS pension is quickly eroded if you retire at the MRA and aren't eligible for a COLA until age 62. On the other hand, if you are only getting step increases every 2-3 years or none at all, then you really need to go at 62, because COLAs generally exceed pay raises when inflation is high. The spread between pay raises and COLAs has been about 7 percent over the past 2 years. That completely obliterates the benefit of a 1 or 1.1 percent increase in your base annuity for each additional year of service.
Great points! COLAs almost never keep up with "real" inflation. Last year was a reality check for many people.
The part which is Art is a real challenge as work life culture and teamwork, seems to have changed so much in the past 5 years. Hold on or hold out, that is the question?
Great point. You should consider what still makes you happy. If you have the ability to be financially independent with a good retirement plan, then continuing to work should be your choice solely because you enjoy it! -TG
Hi enjoyed your video! Question..I am 54 and have 30 yrs in postal service..what do i lose if I leave next week without reaching mra..thank you.
Glad you enjoyed. Generally leaving prior to MRA means you will be deferring benefits, and may potentially lose insurance coverage. I’m not certain about postal rules though.
At 30 years of USPS service you can retire at any age BUT because you are under 62 years of age you will receive a PERMANENT REDUCED deduction for every year before 62. Depending on your birth year, you need to hit your specific MRA and 30 years to receive the supplement. You may not be eligible for your health insurance benefits. You do a deferred retirement, which may or may not affect your health insurance since you have 30 years, and may also be required to get Medicare.
I would rather take my SSN at 62 or 63 and be able to enjoy the extra income while still middle aged and healthy and capable rather than getting more when I'm old and can't fully enjoy life. To me, receiving a high income in old age is just a waste of time because now your old and what can you do when your old besides sitting at home watching TV or your grand kids if your fortunate to have any. It would be the same as winning the lottery at 73 years old. Time wont.be on your side to enjoy spending all that money on yourself. And, I surely didn't work for 42 years to give my retirement to my kids.
Many retirees agree with you, thanks for tuning in!
About social security - I'm afraid to wait to take it, because isn't the social security system unhealthy - worried that my benefits will be reduced or won't last.
A lot of retirees share your concern. We’ve faced this before, however. The “solution” was to increase full retirement age and I think they’ll do the same again, as well as increasing SS tax and contributions by those still working. Hard to know if it’s a solution or just kicking the can down.
How do you figure out the lump sum instead of the annuity route
I work from home and really don’t do much of anything. I have a wonderful work life balance and do pretty much everything I want. If I want to take 5 weeks off to travel or just do nothing so be it. I’m 56.5 and in good health thus far so I just don’t see any point in retiring since I feel like I’m retired already 😂
Sounds like you're in a great position! Glad to hear it!
I want to take SS when it is optimal the amount balanced with my lifestyle needs.
Solid strategy! As I often jest, tell me how long you’ll live for and I’ll tell you the PERFECT date to take Social Security. Hindsight is always 20/20!
I have total faith in you after seeing the YODA BUDDA!
May the force be with you! -TG
When you reach 30 years of service to collect your pension without penalty?
Not necessarily. Many of our clients have left prior to being fully eligible under normal FERS retirement rules. It just depends on your financial plan and how you've set things up to be able to make it work. Retirement planning is all about aligning your wealth to your decisions, not the other way around.
It’s not just years of service it’s also age as well. I have a family member with 32 years of service but is only 51. She can’t retire yet until at least 55 or 56 in order to get her full fers. FERS won’t be enough for her to live on so she is playing catch-up contributions with her TSP and focusing on getting out of debt.
@@westcoastmediasolutions Great point, the hurdle for retirement is both years-in-service as well as age. Special provisions can retire earlier, but everyone else's MRA is around 56/57. You can leave service beforehand, but it comes with certain costs. Thanks for bringing this up!
i'm waiting for FRA, wife will take hers this year at 63, our pensions more then cover our expenses
Glad to hear you've got your cashflows in great control!
Being debt free is the way to go
What about FEGLI once you retire?
This is good, as are most of your videos, but it bothers me that somethings in some videos are not quite characterized correctly or fully depending on your point of view. It's one's monthly SS check that is reduced by 30% at 62 (the video makes it sound like you get 30% less of everything you paid in to SS and due over your lifetime, not accurate unless you die well before 78 and in that case you may have wished you took SS at 62). For most people over their lifetime they get pretty close to the same total dollar amount of SS paid over their lifetime, which is why the break even point of taking SS at the MRA/62 vs. waiting to the FRA or longer to 70 is in the 78-82 age range for most. It can be summed up as you get either lots of smaller dollar SS checks from 62 to death or fewer checks from FRA to death but at 30% higher value each month. I do agree 100% that taking a 30% cut at 62 reduces your buying power forever over your lifetime, and your spouse if they later are getting 1/2 of your SS (death benefit). Makes one wonder is that on purpose to subtly strike concern in soon to retire folks and drive business? Given all that it gives me pause every time I think of reaching out to RMA to discuss (and potentially hire) retirement forecasting/planning. I get that you can't cover every detail in your videos, and again they are always helpful, but in this case I think the info should have been expanded to include more details. Sorry if its a bit of a harsh comment.
Not harsh at all. You make great points. We're far from fear mongers. In fact, we're constantly looking for ways to help our clients retire sooner, spend more, and better enjoy their lives. But there's nothing subtle about taking SS earlier. The fact is that you receive less permanently, and we have to objectively look at this change inside someone's plan. The key question then, is whether this is materially less enough to impact financial independence in the long run. Many other variables influence this too, including how well of a saver someone has been during their working years. We've had some clients take SS as early as possible, others at 70, and everywhere in between. The point is that it's a completely personalized decision. Maybe I'll make another video going deeper into this topic, as I'm sure you're not the only one with additional questions. Hope this helps. -TG
@TheFedCorner Thanks all sounds good.
57 is best
If you have enough creditable service time, it can be a great goal to shoot for. However, it means needing to save more aggressively since you have a slightly longer retirement than most, and those last few years of working can really help a retirement plan.
The later the better. I plan to live a very long time.
Each generation lives longer than the next, plan for more to avoid being caught in financial trouble!
My daughter is disabled and on SSI and SSDI. She can draw from my social security when I retire. Is this a good reason to take Social security at age 62?
Depending on her age, you may already be eligible for an “in-care” benefit as a parent as well.
Take at age 67 fra and do ira conversions until then. I retired at 56 after 32 years.
45...trunst fund kid, so just hanging out til then
Lucky you! Make sure you’re maximizing the legacy your received and are being as tax efficient as possible. Lots of complexities with trusts.
Any videos of FERS disability retirement?
I don't believe Thiago has done any, but we will add it to his list!
FRA 66 and 10 months
The answer better be 62, since I just retired.
Ha! Sounds like it's perfect then. Congrats on retiring! -TG
Funny. I should have just enjoyed my first week of retirement (62)...even was offered a $25K buyout to skirt under the fence this week....and still, reluctantly, and now a bit regrettably, am going limp another year or two...we'll see. Congrats.
the extra for waiting until 70 should be discontinued
Interesting suggestion. That feature serves a few purposes. The first is it allows Social Security to keep and grow its balance for a few years long. The breakeven point for waiting until 70 is generally around 82-83 years old, so for that time Social Security was ahead of the game, while a participant gets to take home a bit more each month. What's the main reason you would suggest removing it? Curious on your thoughts! -TG
Do not retire with debt. And the idea that you only have one shot at retirement is not valid. Many people retire and un retire all the time
If you're forced into doing that, it's not the most ideal situation. The key here is to always have options. If you have a failed retirement plan, then you're forced back to work.
@@TheFedCorner I’m
Not speaking about a failed attempt. I’m saying that many people retire from their careers and enjoy working so they continue to work in other fields. Retirement these days is overrated.
Retire asap. Enjoy your life while you are able. Many people die before retirement.
Time is our most precious resource, and the only one that can’t be renewed!
I am going to wait until 70
Many people do too. Have you figured out what age you break even?