Pension

[gibsonman]

Bottom line is knowing your expenses and being debt free.....if you can bring home (net) what you are making while working and have TSP to last 30+ years you are pretty golden

 

[Stoplight]

Gib,

I'm blessed...my FERS pension is based on a high-three, as a GS-14, in DC...ya gotta make the sacrifice !!!

Retired as a GS-12 in FL !!! Go figure !!!

Monthly gross FERS pension is $2478...


Stoplight...

 

[gibsonman]

no worries

 

[Stoplight]

Hey Stoplight. We loved Australia and New Zealand. This COVID sure put a damper on our vacation travels. We had 4 cruises lined up this year, one being a family cruise with the daughters and their families. Not sure what we will do for 2021.

Haven't had to tap my TSP yet or the wife's 401 since I'm still working after failing retirement in 2014. Going retirement 2.0 sometime late summer next year. Just applied for SS for both of us late last month. Figured might as well get it while we can.

Take care.

Hey, NASA !!! Thanks for weighing in !!!

I, on the other hand, have passed retirement with flying colors !!! Nary a thought about getting a job again... I assume you're still working 'cause you like what you're doing ???

Yeah, we LOVED our freestyle Australia and then structured New Zealand cruise, too !!! We should probably continue this discussion in Tom's "Vacation" thread !!! See me in the Lounge..."What Trips are you Planning ?" !!! I'll buy you a beer !!!


Stoplight...

 

[nasa1974]

LOL !!! Ain't THAT the truth !!!

I set up a monthly withdrawal from TSP from the time I retired until the time the supplement went away (and I could claim SS ; at age 62 ; which I did). The rest of the TSP, I rolled over into a self-directed Brokerage IRA with USAA....withdrawal as needed. Rolled the Wife's 403(b) retirement into a similar account.

We've tapped our accounts a few times, like for our bucket list trip to Australia and New Zealand, but haven't withdrawn anything in 2019 or YTD 2020... New Bucket list trips have been kinda' screwed by Corona...and we're not getting any younger !!!

Now I gotta start looking at the impact of the required minimum distribution calcs...Wife hits that age first...

Talk about a headache !!!

Sorry, Gibsonman, for hijacking your thread ! :worried:


Stoplight...

Hey Stoplight. We loved Australia and New Zealand. This COVID sure put a damper on our vacation travels. We had 4 cruises lined up this year, one being a family cruise with the daughters and their families. Not sure what we will do for 2021.

Haven't had to tap my TSP yet or the wife's 401 since I'm still working after failing retirement in 2014. Going retirement 2.0 sometime late summer next year. Just applied for SS for both of us late last month. Figured might as well get it while we can.

Take care.

 

[Stoplight]

Hi Stop. Yes it was/is a complicated business. No “one plan fits all”. We all try to help even if our posts are non sequitur.

Glad to hear you are ahead of expenses. Me too, so much so that I have brought up the subject of stopping the TSP annual withdrawal. That discussion gave me a bigger headache than meetings with engineers did while I was working.

PO

LOL !!! Ain't THAT the truth !!!

I set up a monthly withdrawal from TSP from the time I retired until the time the supplement went away (and I could claim SS ; at age 62 ; which I did). The rest of the TSP, I rolled over into a self-directed Brokerage IRA with USAA....withdrawal as needed. Rolled the Wife's 403(b) retirement into a similar account.

We've tapped our accounts a few times, like for our bucket list trip to Australia and New Zealand, but haven't withdrawn anything in 2019 or YTD 2020... New Bucket list trips have been kinda' screwed by Corona...and we're not getting any younger !!!

Now I gotta start looking at the impact of the required minimum distribution calcs...Wife hits that age first...

Talk about a headache !!!

Sorry, Gibsonman, for hijacking your thread ! :worried:


Stoplight...

 

[PessOptimist]

As others have noted...supplement goes away at 62, regardless if you take SS or not...and supplement subject to earnings test ! They send you a questionnaire each year ! :smile:

Fascinating thread !!! Mind-blowing, all the permutations of military/Guard/civilian (CSRS vs FERS) retirement pension, TSP balance/withdrawals, survivor benefits, SS (age taken), post retirement work income plan, health care, life insurance...

Then factor in the Wife's numbers (if applicable !)...all the similar options out there, that affect your calcs !!!

What's the "Best Plan" ? Who the hell knows !!! All I know is : School Teacher Wife retired in 2009 ; me in 2012 (FERS)...so far, we're ahead of expenses !!! :smile:

It's all enough to give this retired Engineer a headache !!!


Stoplight...

Hi Stop. Yes it was/is a complicated business. No “one plan fits all”. We all try to help even if our posts are non sequitur.

Glad to hear you are ahead of expenses. Me too, so much so that I have brought up the subject of stopping the TSP annual withdrawal. That discussion gave me a bigger headache than meetings with engineers did while I was working.

PO

 

[Stoplight]

Brass Tacks:

I expect to retire at 58, FERS, with supplement. How long does the supplement last? 62 when I'm eligible, or when I file for SS later?

Frixxxx,

As others have noted...supplement goes away at 62, regardless if you take SS or not...and supplement subject to earnings test ! They send you a questionnaire each year ! :smile:

Fascinating thread !!! Mind-blowing, all the permutations of military/Guard/civilian (CSRS vs FERS) retirement pension, TSP balance/withdrawals, survivor benefits, SS (age taken), post retirement work income plan, health care, life insurance...

Then factor in the Wife's numbers (if applicable !)...all the similar options out there, that affect your calcs !!!

What's the "Best Plan" ? Who the hell knows !!! All I know is : School Teacher Wife retired in 2009 ; me in 2012 (FERS)...so far, we're ahead of expenses !!! :smile:

It's all enough to give this retired Engineer a headache !!!


Stoplight...

 

[fisherhouse]

Every year after 20 adds 2.5%, capping out at 30 years / 75%. I'd also be making a pretty decent annual salary while still in at that point.

Yep. Considering you'd likely be E-9 to make it 30 years, the difference in retirement pay is nearly double what you'd get for retiring as a E-8 at 20 years. Although there are trade-offs such as having to move every few years to a new location. At one time I thought about staying 30 years, but life happens and think my family and I would be happier if I bowed out around 20-22 years.

 

[bmneveu]

Financially, when you go over 20 years your base pay is 1/2. If you do the math, since you may work after retirement, it would be better to get a job then and invest your military retirement check. I'll look for the site I used to go to do that math.

Every year after 20 adds 2.5%, capping out at 30 years / 75%. I'd also be making a pretty decent annual salary while still in at that point.

 

[mcash]

Brass Tacks:

I expect to retire at 58, FERS, with supplement. How long does the supplement last? 62 when I'm eligible, or when I file for SS later?

Not only dose the supplement stop when you reach age 62, you need to be aware that the supplement is also subject to an earnings test. That is, your supplement will be reduced if you have earned income exceeding $18,240 (2020 number). I retired at 57 and have had to keep an eye on my earnings the past 3 years to keep the full supplement amount in play. I may actually work full time again once the supplement goes away when I reach 62 as I don't plan to start drawing SS until I reach my FRA at 67.

 

[uscfanhawaii]

Brass Tacks:

I expect to retire at 58, FERS, with supplement. How long does the supplement last? 62 when I'm eligible, or when I file for SS later?

Good Plan!
Supplement is good to 62.
SS starts at 62. (If you want it, otherwise whenever you decide to take it. I’m sure you’ve seen all the discussion lately on when is best to start taking SS.)

 

[Frixxxx]

Brass Tacks:

I expect to retire at 58, FERS, with supplement. How long does the supplement last? 62 when I'm eligible, or when I file for SS later?

 

[nasa1974]

I waited for three reasons 1) was the CSRS penalty 2) I failed retirement and I'm still working full time and 3) I didn't want the SS penalty.
So why take it now? I did the math and it's better to get it now then at 70.5, 1) is less of a penalty, 3) isn't in the mix anymore and in 2021 I'm planning for retirement 2.0.

 

[nnuut]

I did the math on SS. The tables show that if you make it to 80, it doesn't matter if you take it when you are first eligible or wait until FRA. You'll draw the same total amount. I'm taking at 62. That way my wife can draw off my SA account.

I started mine at 64 and am glad I did.

 

[Weather]

If you are CSRS you get penalized on your SS because of your pension. FERS no penalty.
In my opinion if you are still working it is best to wait until you reach FRA then collect SS. If you wait until 70 it could take 7-10 years to make up the difference if you started collecting at FRA. Then again if you live to be 100 you loose money.

I did the math on SS. The tables show that if you make it to 80, it doesn't matter if you take it when you are first eligible or wait until FRA. You'll draw the same total amount. I'm taking at 62. That way my wife can draw off my SA account.

 

[Frixxxx]

I'm 33yo so who the hell knows. What I do know is my pension will be wildly different if I retire at 20 years at E-7, or keep promoting, stay in, and eventually retire as an E-9 with 30. The difference is absolutely massive. But, less years on the back end to enjoy it. And more years my family has to deal with military life.

Financially, when you go over 20 years your base pay is 1/2. If you do the math, since you may work after retirement, it would be better to get a job then and invest your military retirement check. I'll look for the site I used to go to do that math.

 

[bmneveu]

I'm 33yo so who the hell knows. What I do know is my pension will be wildly different if I retire at 20 years at E-7, or keep promoting, stay in, and eventually retire as an E-9 with 30. The difference is absolutely massive. But, less years on the back end to enjoy it. And more years my family has to deal with military life.

 

[nasa1974]

If you are CSRS you get penalized on your SS because of your pension. FERS no penalty.
In my opinion if you are still working it is best to wait until you reach FRA then collect SS. If you wait until 70 it could take 7-10 years to make up the difference if you started collecting at FRA. Then again if you live to be 100 you loose money.

 

[ALRetiree]

I'm not 100% sure, but I think that the amount on your SS statement at full retirement age PRESUMES that you actually work until full retirement age. If you're retiring before then, your $$$ will be much less than what the estimate would be at FRA. It's hard to get a definitive answer on this, but I've asked one of our retirement seminar providers and a recent retiree who postponed claiming a few years after retirement and they both seem to say that it does no good to wait to claim SS after you actually retire as the $$$ doesn't go up very much at all (a little, but not much)

This is the presumption I get as well from the SS website. There is a calculator I ran on there where I put in 56 years old as the age when I stopped working and made zero dollars after that and it decreased my amount at 62 on my statement by 10%. It wouldn't change the numbers for 67 and 70 and the calculator assumed I would make my current income until those ages. That makes it difficult to know what it would be if I held out until later. It says it goes up by 8% a year but if they assume you're working and not sitting on your butt collecting your pension, the numbers would drop, but by how much?