Calculating FERS retirement

Sort by newest Sort by date
P

Pistol

New member
I was trying to calculate what my FERS retirement would be and my numbers just don't add up. Here are what my numbers should be at retirement. Could someone tell me how much my FERS retirement would be based on 25 years of service with an annual salary of $90,000? Thanks
 
Pistol said:
I was trying to calculate what my FERS retirement would be and my numbers just don't add up. Here are what my numbers should be at retirement. Could someone tell me how much my FERS retirement would be based on 25 years of service with an annual salary of $90,000? Thanks
Click to expand...
Top three years are $90K?
 
Pistol said:
I was trying to calculate what my FERS retirement would be and my numbers just don't add up. Here are what my numbers should be at retirement. Could someone tell me how much my FERS retirement would be based on 25 years of service with an annual salary of $90,000? Thanks
Click to expand...
Here is the OPM explanation.

http://www.opm.gov/retire/pre/fers/computation.asp

If you're law enforcement, with twenty-five years of service, you would receive 39% [(1.7% x 20 years=34%) + (1% x 5 years=5%)] of your high three ($90,000) or $35,100...if my calculations are correct. I'm no math wiz!:embarrest:
 
FireWeatherMet said:
FERS for regular emloyees ia 1% for every year of service X Avg of top 3 years.

If you are older than 55 and are eligible for retirement, then that would be 25% of 90K, which is 27,000/yr.

Now what is your TSP total. Do you want to let it grow or cash out? If you have 300K in there and want to transfer it to a lifetime annuity at say 5%...then thats an additional $15,000/yr.

So you would be up to $42,000/yr. There is also a Social Securty supplement which takes effect at 59 1/2 years of age that pays you roughly 70% of what SS would normally pay out. If you are near 60, that might be around 10K/yr. So now you're up to 52,000/yr.

Bt without knowing more about your TSP and age history...we're really dealing in hypotheticals right now. Hope this gives you a ballpark idea of where you stand.
Click to expand...

One thing- Minimum retirement age is 56 for those born between 1954 and 1963; abd climbs to 57 for anyone born later than 1970. http://opm.gov/retire/pre/fers/eligibility.asp Those who haven't got 30 years of service can get a reduced annunity, but it takes both age and years of service to qualify for the full retirement amount.
 
Be careful about the annuity option. You will likely accrue the same or better interest in the G or F fund, and maintain your capital and flexibility.
 
Annuity from TSP....Really?

I thought we already had a support group to stop taking annuities from your TSP?:suspicious:
 
Note if you are 60 or older, calculate 1.1 X Years X average high 3.

Don't do TSP annunity, unless you want to give all your money to Met Life when you die. Keep your bucks with TSP and do the TSP monthly payment plan. It will still earn interest and you have full control over your balance to move around the different funds you choose.

I can't wait until Dec 31, 2010........I am out of here!
 
Easy TSP calc scenario...

$300,000 in G fund at retirement, with G fund paying out at an average of +4%.

Withdraw at $1000 per month in perpetuity, and never touch the principal.

Bump up the withdrawal as needed.

Better than Met Life, and you keep your money, as Zebra said!
 
I really do love reading these forums, but there are so many of you close to retirement I get jealous... I am in for the long haul (2040ish).

Congrats Zebra!
 
Is the social security supplement part on the interim payment? I've just retired and received 80% of my FERs portion but have not received the ss supplement. Is it provided after the interim period of 2 months? Should I make a call to OPM?
 
JimmyJoe said:
Is the social security supplement part on the interim payment? I've just retired and received 80% of my FERs portion but have not received the ss supplement. Is it provided after the interim period of 2 months? Should I make a call to OPM?
Click to expand...
Are you over 60 years old? The supplement is paid to FERS retirees aged 60 to 62. If you've received the booklet from OPM that gives you your OPM retirement number and explains your benefits, you should be able to find your answers in that booklet. If you have not yet received your booklet, you might wait until you've received it. I refer to mine whenever I have a question, and I find it to be helpful to me.

My 2 cents,
Lady
 
SkyPilot said:
Easy TSP calc scenario...

$300,000 in G fund at retirement, with G fund paying out at an average of +4%.

Withdraw at $1000 per month in perpetuity, and never touch the principal.

Bump up the withdrawal as needed.

Better than Met Life, and you keep your money, as Zebra said!
Click to expand...

Watching the funds gain this past year has been gut wrenching. Went 100% G November 2007, haven't considered going back. Kudos to those whom jumped back in at the right time. Was so paranoid over loosing everything saved in the TSP, couldn't grow the pair to put even a third back in.

Current market corruption aside (or not, whatever your belief is), sit daily and wonder if rolling the dice with a third of TSP funds within 3 years of retirement a wise thing. I've seen greed wipe out many, with many also profiting. Never did well trying to follow the I fund FV, ended up about even up to the point transfers were limited. Haven't went back, to be honest I'm a "doomer", with a back fall position that any current earnings in markets are ill gotten via TARP and the expense of many financial future whom haven't been born yet. Guess the market wizards worry about their offspring as well, but my morality doesn't seem to follow the same thought process.

That said, pretty much sums up our expectation of retirement, as basic and minimal as it can get. Will have 30 in 3 years and be 56 1/2 with 300K in TSP, 90k high 3. Basing it on that, maybe DOD will hand out a cost of living, heck, we don't even know what kind of pay system we'll be in after NSPS is unwound, so any increase figure it to help against inflation (but seriously doubt it will come close). This all baring unexpected circumstances. (Like being offered an early out!).

If it were not for current debt, we'd live pretty good on our pension. We have a short first note on the house, payment is pretty high, nearly 1280.00 a month (tax and insurance incld) with 9 years remaining after retirement, will take 79k to pay it off. Second of 70k (550/mo 7.5% w/20 years remaining). RV loan, credit debt, all in all about 170k in 3 years total debt. Right now all income goes to service debt and expenses, at a time when it would have been nice to maximize TSP contributions. New hires be forward. Save consciously, and responsibly.

Haven't done the math other than rough numbers, thinking about drawing down payments from the TSP to cover the cost. The primary mortgage is 4.5%, but the second will eat away at TSP earnings. Wondering if pulling cash to cover the second in 3 years would be wise, or payments, hedging that inflation will devalue dollar. We are not in a rush to move after retirement, but can't afford to keep the home if we decide to move elsewhere, like Panama or North Carolina (or hundreds of other past time thoughts) and am a bit leery about pay one or both mortgages off. If put on the market now, we'd likely have to pay cost to sell, +/- 10k. 4 years ago, considered "equity to be moving and down payment monies. Time sure change fast.

Deciding on where we’ll be is difficult. Married just a year ago, and part of the promise was to enjoy life after the 7-5 9-5-4 ended. Camping, fishing and just generally enjoying the outdoors is priority, so we are easily pleased. We live at the base of the Sierras in California (opp’s, I said a bad word), and depending on what the future holds for state residents as far as taxes are concerned is another big question. Moving and resettling cost can be very expensive, so must consider amortizing that amount over tax paid here and follow the better deal, and just as important quality of life.

Others have brought up situations such as rehired annuitant or return working as a contractor which is very popular here. Not trying to smear anyone, but it’s time to leave. The change here hasn’t been good, far too much intra political battles at every level to ever think achieving accomplishment once again would have the slightest chance to occur. For that to happen, employees must have support of management. IMHO, what we have now is functioning chaos. Again, I digress.
Am so ready for the door.

We still have a lot of calculations to do, this late in the game we are just wiping every non essential desire off the map and powering through the break to all points West.

I’d like opinions about the mortgage situation described above, if it made any sense. My gut feeling is to just pay it off with TSP funds, it’s not like I’ll stop working from 56 on, just done with this career. Surely, will look back and say, boy those were big checks, with pole and line in rushing river, Bourbon on the rocks top of the ice chest. But it is a large amount of cash that might be better served to hang onto as long as possible. If I were smart enough to know, guessing my situation now wouldn’t be so limiting.

Apologize for the long thought.
 
XL-entLady said:
Are you over 60 years old? The supplement is paid to FERS retirees aged 60 to 62. If you've received the booklet from OPM that gives you your OPM retirement number and explains your benefits, you should be able to find your answers in that booklet. If you have not yet received your booklet, you might wait until you've received it. I refer to mine whenever I have a question, and I find it to be helpful to me.

My 2 cents,
Lady
Click to expand...

Isn't the offset paid at MRA and 30, up to 62?
 
Rustynutt said:
"If it were not for current debt, we'd live pretty good on our pension. We have a short first note on the house, payment is pretty high, nearly 1280.00 a month (tax and insurance incld) with 9 years remaining after retirement, will take 79k to pay it off. Second of 70k (550/mo 7.5% w/20 years remaining). RV loan, credit debt, all in all about 170k in 3 years total debt. Right now all income goes to service debt and expenses, at a time when it would have been nice to maximize TSP contributions. New hires be forward. Save consciously, and responsibly."


Brother you DO have a lot to think about! No one can make these calls but you and the wife. There is the Dave Ramsey approach (painful but very effective). i.e. Start paying off the debt smallest first and then start on the second mortgage, etc. RV's are fun but expensive to upkeep. I would sell the RV and use the proceeds to pay down debt (cuts down insurance costs as well). You can always buy another one after retirement if finances permit. Keep hammering on the debt between now and retirement.

The first mortgage question may depend on whether you are moving or not. If you sell hopefully you would get at least enough to cover the two mortgages. No reason to use up your TSP funds. If you stay, may want to only pull your TSP earnings to beef up your monthly income. Don't touch the principal. Last resort to pay off mortgages from TSP. Remember monies taken out will be taxable at whatever the tax rates have risen to in three years. May want to keep enough life insurance to pay off debt remaining to provide for your wife just in case... Good luck.
Click to expand...
 
You must log in or register to reply here.

Similar threads

G
Glad to finally find a site where the TSP is discussed
Replies
4
Views
4K
evilanne
evilanne
C
FERS medical
Replies
4
Views
2K
Kevon2022
Kevon2022
TSP_AI
  • Article Article
Hey TSP AI: What is the best age to start receiving social security?
Replies
0
Views
888
TSP_AI
TSP_AI
TSP_AI
  • Article Article
Hey TSP AI: What percentage of years has the S&P 500 made a new high?
Replies
0
Views
735
TSP_AI
TSP_AI
D
Supplement qustiion
Replies
3
Views
3K
evilanne
evilanne
Back
Top