Retirement stories and suggestions

[PessOptimist]

A big thank you to all MB members who have posted their retirement experiences.

Short timers like myself (2500 days +/-:blink really do need to start getting together a plan.

It is hard to say what the fed retirement system will be like in the future but I don't believe it will change that much in the next 2500 days, except for high 5 and maybe no pay increases within grade/step. But that's just my pessoptimistic side.

The best advice I have seen here and in other topics is to get the matching TSP contribution (if you are eligible) and to try to accumulate 240 hours use/lose annual leave plus everything you accrue in the calendar year you plan to retire. Sell that leave back and that will be your living money until OPM gets your account right.

I do know one person who figured out how to take all his leave plus that accrued while on terminal leave. Claimed it was the way to go since he accrued 40 or so hours annual leave while on terminal leave. To each their own. That would take some ppp. I have to assume he made some plans about living expenses between retirement date and 100% retirement pay coming.

Of course, you also should try to have debts paid off, including if possible, mortgage and car payments.

My motivation for starting a new thread is that a lot of the retirement experience info is spread around in different topics, including account talk threads. Here is a place to post any advice you may have for those of us still grinding away.

Thank You

PO

 

[Zebra]

And be prepared financially to go 2 or 3 months without OPM pension. I retired 31 Dec 10 and have not received any pay, but I am in good shape, but not having it is cutting into my fishing trips and such, Muhahahaha!:laugh:

 

[Bquat]

I think it is a good Idea to start up the retirement experience thread.

There is a great knowlege base on all type post retirement issues on this board.

 

[Bquat]

Did you know you can maybe beat the 6 to 8 month delay in getting your full retirement and Social Security suppliment by start calling retirement services at 5 1/2 month's. If you start too early they just let you know that there is a delay. If you wait a little bit and call and say you didn't hold back enought cash back for the delay because you payed bills off or didn't take a big enought lump sum, you may get the FER's finance number and a person that is allowed to do the paperwork in two weeks instead of first come first serve. This sometimes works.

 

[alevin]

Now that is one of the best insider trading tips I've seen yet on the retirement angles. i bet it will pay off for one or more others here this year tho. not me, i'm years away at this point.

 

[jpcavin]

Has anyone that is already retired contacted their congressman? Just wondering if it was helpfull.

 

[Bquat]

For FERS retirement on Dec. 31 is good for two reasons:

1. You don't lose annual leave above 240 and can sell it all.
2. Your money for annual leave and one time lumpsum (over 55) is
taxed on next year taxes.

Retiring in October or November will let your lumpsum and annual leave be on this years taxes, Which may raise your income to the next higher tax braket. They only took out 20% for taxes when I retired and if I went to the 25% bracket I would have had to pay more. I made the 15% bracket and will get a big tax return.

If you have 240 or less annual leave and are a very good employee it may be good to wait till after January when you get your bonus or step increase. Its the bonus or above 240 leave amount choice.

 

[Bquat]

Has anyone that is already retired contacted their congressman? Just wondering if it was helpfull.

It has been tried but this delay have existed for a long while (2005ish) because the software upgrade didn't work and they have to do everything by hand. There was mentioned that there would be more hiring last year to help with this issue but I don't know. There was a thread on this before in the retirment section.

 

[brooksmd]

According to my counselor at HRSSC, the paperwork doesn't go forward to OPM until your actual retirement date.

And while Dec 31 is best for selling back annual leave, remember if you retire during a pay period you don't get that 8 hrs. I'm not sure how the other agencies do it, but with the USPS you can carry over 440 hrs for craft employees. Therefore retiring on Dec 31 you could sell back 648 hrs.

Lot's of variables to look at and what is good for one might not be good for someone else. I did a Google search on best retirement dates for 2010. When your time comes do the same thing and you should get some hits for Federal Times articles on the subject.

The big thing to survive the delay at OPM, plan and save for your retirement day.

 

[Zebra]

brooksmd,

I only wished we could carry over 440 hrs! I worked for NASA and we could only carry over 240 hours, so I sold back 448. I can't tell you how many years I lost 70 or 80 or more hours, or gave them away to the needed.

BTW, Still no pin number or pay

 

[nasa1974]

brooksmd,

I only wished we could carry over 440 hrs! I worked for NASA and we could only carry over 240 hours, so I sold back 448. I can't tell you how many years I lost 70 or 80 or more hours, or gave them away to the needed.

BTW, Still no pin number or pay

Zebra, what did you do for NASA. I'm at Glenn.

Planning to retire next year, somewhere between May and December. If Congress passes the high 5 requirement instead of the current high 3 I will be gone this year. If they go to a high 5 the OPM backup could be a year or more.

 

[brooksmd]

Z that's getting to be ridiculous with your retirement check. Wonder if HRSSC forgot to send your paperwork to OPM? And still no PIN here either.

 

[Zebra]

I don't know if any of you have every attempted to call (OPM) the number that is on the back of your CSA card. Well for days I have attempted, but only got a busy signal. Then BOOM.......I fianlly got in, but I was on hold for about 30 minutes before I got to talk to a live person. This person (Kelly) said it would be three to four weeks before I get my first paycheck, reason due to backlog.

Disappointed I called my person at NSSC, human resources and told her my issue. She took my CSA number and my telephone number and promoised to call back. Well She did and it appears OPM got a ear full from this person, but good news she said my package got move to the top and maybe I will get paid next week; time will tell.

Z that's getting to be ridiculous with your retirement check. Wonder if HRSSC forgot to send your paperwork to OPM? And still no PIN here either.

 

[jpcavin]

Z

I hope you get paid soon. That really is ridiculous!

 

[Bquat]

For those of you who want to retire in the next 6 to 12 months.

Preiretirement strategy for FERs employee (this was what I used):

1. Reduce TSP contribution to 5% to just get matching funds. This will inrease the last years take home and won't really effect your TSP balance that much because your already past the building years.

2. Get used to 80% or less pay. Take all of the new take home pay and start adding to it 2% more each month of your take home to pay off bills. Start paying off the small loans and higher interest loans first. The house payment is exempt from this unless you have less that $10,000.

3. There is no such thing as overetime to you. Every bit of overtime pay is bill paying pay. You don't get overtime in retirement . You get free honey do's.

4. There is no more borrowing or expensive spending anymore. You are cash and carry now buddy only borrowing for emergencies for you kiddo.

This is just a suggestion on how to adjust towards the less pay in retirement and may even make you feel like your pay is the same after you retire.

This is mainly for those that need to clear up a good amount of dept before retiring. It worked for me. Doing this and not putting 19% in TSP or paying 7% for SS has made the progression into retirement easy.

 

[Zebra]

Bsquat, looks like a good suggestion. I had a 5 year plan, but I did max out my contributions to TSP and I think my contribution (over 100k) on top of what I already had paid or made a bunch of money for me. But not having any bills was exactly our plan. We decided on the monthly payment plan from TSP, which can be adjusted annually to meet one's need. Retirement is like being on a perpectual vacation! Highly recommended!

 

[Steel_Magnolia]

For the few of you that are old enough to get Medicare, did any of you keep Part B? With federal health insurance is Part B still needed?

TIA for any responses!

 

[law87]

A big thank you to all MB members who have posted their retirement experiences.

Short timers like myself (2500 days +/-:blink really do need to start getting together a plan.

It is hard to say what the fed retirement system will be like in the future but I don't believe it will change that much in the next 2500 days, except for high 5 and maybe no pay increases within grade/step. But that's just my pessoptimistic side.

The best advice I have seen here and in other topics is to get the matching TSP contribution (if you are eligible) and to try to accumulate 240 hours use/lose annual leave plus everything you accrue in the calendar year you plan to retire. Sell that leave back and that will be your living money until OPM gets your account right.

I do know one person who figured out how to take all his leave plus that accrued while on terminal leave. Claimed it was the way to go since he accrued 40 or so hours annual leave while on terminal leave. To each their own. That would take some ppp. I have to assume he made some plans about living expenses between retirement date and 100% retirement pay coming.

Of course, you also should try to have debts paid off, including if possible, mortgage and car payments.

My motivation for starting a new thread is that a lot of the retirement experience info is spread around in different topics, including account talk threads. Here is a place to post any advice you may have for those of us still grinding away.

Thank You

PO

I envy you guys that have that TSP matching contribution, i dont see why military cant get it, we're making less of a pay check then you guys

 

[nnuut]

I was CSRS, we didn't get TSP Matching Contributions, but had a real retirement plan then the Government found out how much money they could save with FERS.:suspicious:

 

[Bquat]

I envy you guys that have that TSP matching contribution, i dont see why military cant get it, we're making less of a pay check then you guys

I agree the military should get it but I don't see it in the short term. The outside economy is keeping their retinsion rate up and signup bonuses is keeping up their enlistment rate with enought turn over as not to be a retirement load in the future. They also use reenlistment bonuses to retain critical personnel without increasing retiremet incentives. Pay now not later approach. I had 8 years and had reenlisted for 6 after 2 years for SRB of 5. Got out in 1980 after a hitch of 13 months 24 on and 24 off.
Tends to tear up family and I liked the time and half for working hours those as a civilian. Got into civil service in 1985 which was a career that had a lot of overtime also, DOD.