Federal employees have a few different early retirement options that they should be aware of. FERS offers the following early retirements:
MRA plus 10
Postponed retirement
Deferred retirement
It’s important for federal employees to know how they work and which one is best….(read more)
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In recent years, the idea of retirement has been shifting for many individuals. With longer life expectancies and changing economic circumstances, the traditional retirement age of 65 is no longer the norm for everyone. As a result, various retirement options have emerged to accommodate different needs and preferences.
One such option is the Minimum Retirement Age (MRA) plus 10 rule, which allows federal employees to retire with full benefits once they reach their MRA (typically between 55 and 57) and have at least 10 years of service. This rule was implemented to give employees the flexibility to retire earlier if they choose, as long as they meet the minimum service requirement. While retiring early may have financial implications, such as a reduction in pension benefits, many individuals see it as a way to enjoy a longer retirement and pursue other interests.
Another retirement option gaining popularity is Postponed Retirement, where individuals choose to delay their retirement past the traditional age of 65. By doing so, they can continue working and increasing their pension benefits until they decide to retire. This option is appealing to those who want to boost their retirement savings, maintain their social connections, or simply enjoy their careers for a few more years. Additionally, some individuals find that working longer allows them to access better healthcare and other benefits provided by their employer.
Deferred Retirement is a variation of Postponed Retirement, wherein individuals retire from their current job but defer accessing their pension benefits. By doing so, they can maximize their pension benefits for a future date, usually until they reach a certain age specified by their pension plan. This option allows individuals to retire earlier from their current job while still ensuring a secure financial future in retirement.
Overall, the emergence of MRA plus 10, Postponed Retirement, and Deferred Retirement options highlights the changing landscape of retirement. With increased life expectancies and the desire for more flexibility in retirement planning, individuals now have more choices to tailor their retirement to their needs and preferences. Whether they choose to retire early, postpone retirement, or defer accessing their pension benefits, these options offer individuals the opportunity to create a retirement plan that best suits their lifestyle and financial goals.
My situation is that I have 13 years of active duty service. I am considering becoming a nurse at the VA. How many of my 13 years will count?
i started at the veterans administration when i was 20yrs old. I quit when i was 33 yrs old. Will I get a pension? Thanks
i got lucky with a early out and got the supplement as well. The only problem is there is a penalty if people dont have 30 yrs in ss and have a previous pension.
I have 21 yrs am 41 and would like to do a deferred and wait but will I get full retirement at 60 or will it be somewhat deducted
When I hit my MRA, I will have approximately 25 years of service. Some federal retirement YouTubers say I will have a benefit reduction of 5% for every year I’m under 62, some say 60. It’s very confusing. Also, what is the amount of the SRS?
Can you elaborate on 21 years at age 60 postponed. No srs, but I was told if you work 12 months prior to age 60 up to that age you can get srs from 60-62. Is that correct?
Greetings ,and thank you VERY MUCH for the great video . I am 52.9 years old ( not a special force or military, fire fighter ) and I hopefully get my 20 years very soon ( 1/27/2023), working at VA …. If I would resign on 1/28/2023 and deferrer my retirement to the age of 60 , I will get ONLY unreduced annuity( pension ) BUT no health benefit. NOW, my big question is : if I would resign on my 20 year's service day and wait another 4 years to reach my MAR ( 57) , may I apply for( MAR + 10 option )and start getting my health benefits ( health insurance ) ( right away ) +my annuity of course = 5% reduction each year before age of 62 ? ( I heard that in order to get the health benefit( health insurance ) one has to be enrolled 5 consecutive years right before MAR ??? I DO know there is something about at least contribution of 5 years to FEHB, but I don't know if this can be applied to my case if I get out of the government system completing 20 years service , but have NOT worked all the way to my MAR (57 ) )… please kindly advise
so i decided to work until my MRA.
IF i have 20yrs plus MRA I can do a postponed retirement. so when i leave at MRA i won't have FEHB health benefits. if i get cancer or heart condition i can start my FEHB back up during open enrollment. i will then have to pay a 5% penalty each yr before 60 or 62? i plan on making it until 60 won't need the $$$ until then. will i be paying the same monthly as i did when i was employed. it is still just myself needing the health benefits.
Great video. Thanks for posting.
Thank you for your video. I am 60 years old and would like to retire now. If I use postponed with 12 years of service and wait to 62 to collect. Do I get my full retirement or will it be less 10%
Great video, thank you! So…I quit working 20 years ago with 17 years of service at age 41. I'm turning 62 next year. Deferred, and fill-out Schedule C of the RI 92-19? And…send it 60 days prior via registered mail? Thank you again.
I’m retired military and 100% permanent and total VA disabled VET. I’ve been working for the federal government for 12 years and I’m currently 51, could I resign from the federal government now at age 51 and still receive a reduced pension when I reach MRA age?
Do you have to fill out the form for deferred retirement when you want to leave the job or you fill it out when you are ready for the cash
If you pass on between the time you stop working, say at 56, and the time you start your benefits (FEHB), say at 60, can your spouse still get the FEHB at 60? Assume MRA +20 w/postponed retirement.
if i use deferred with 20yrs at 55yrs and wait until 60 to collect do i still get penalized 5% per yr before 62?
Thanks for video. I'm 49 with 24 years. 25 in January will be 50 Feb. Do I have to do the MRA+10 or postponed? Any benefit to wait until I turn 50 with 25 years? Really ready to go now.
Let's say you retire under FERS at age 58. Do the COLAs accrue for each of the 4 years until you reach age 62 or do you only get the COLA for that particular year when you turn 62 ?