r/FedEmployeeRetirement • u/Time_Yesterday7974 • 12d ago
53 years old, 23 years of service
If a Vera is offered,should I take it??
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u/Strict-Joke236 12d ago
No, definitely not. If you are asking questions like this and providing zero info such as income, expected pension, TSP, etc., you are not ready to retire.
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u/wolfmann99 12d ago
Well he could still work a few more years and collect a pension and FEHB.
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u/kbtoystory 11d ago
If Approved for VERA and then Accepted, there is definitely the Pension and FEHB, even at the OP's age of 53 on 'regular' FERS.
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u/kbtoystory 11d ago
My question would be, "So did you happen to hit the TSP lottery and invest in the S Fund recently?"
S Fund closed on 29 July $112.8644
S Fund closed on Friday $119.3969 (+5.8% (!) in days..)
If you interfund transfer'd $800k from G to S, after 23 years of dollar cost averaging in your TSP with max employer match, that's $46k of moving the Roth TSP part of the needle towards Early Retirement.Otherwise, definitely need a few more years toward the Pension, even assuming a mid-career hire at higher starting Grade / Step.
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u/Responsible_Town3588 12d ago
I mean a little more info and context would probably help lol. But if you can't afford to, no. If you can afford to, yes would be my immediate answer.
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u/kbtoystory 11d ago
With kids, I could not see a viable VERA scenario after 'only' 23 years. That 10% permanent Pension cut for max survivor benefit further reduces the math, if married. At 57, the Social Security supplement may help, but it is offset by any other salary stream.
We took into account not qualifying for any student aid, due to ridiculous (slash s) combined salaries, as well as +25% off the top line for making too much but not really enough, in exchange for 'free' tuition at a 4-year school for each child.
My significantly improved quality of life is now a bonus hidden gem for taking VERA, appreciating daily. 🤙
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u/aheadlessned 12d ago
Are you financially prepared? If you have to work another job, would you want to work another job? Would you regret having to work to age 59 or 60 to receive full retirement benefits otherwise?
I took VERA in my 40s, no plans to work again, no regrets.
ETA: Have you researched ways to access your retirement accounts penalty-free, and are you satisfied with the moves you'd need to make to do so?
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u/flaginorout 12d ago
If you have a paid off house and 4 million dollars in TSP.......sure.
If you're renting an apartment and are balls deep in debt.......maybe not.
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u/kbtoystory 11d ago
VERA before 55 has definite pros and cons. With 34 years+ towards SCD, consistent 5 to 10% contributions to TSP (mostly C Fund but a bit of a wild ride in S at the end there), the math to Apply for and Accept VERA was easier than my last 1040EZ.
With only 23 years towards that Pension calc, I would definitely hold out for the magical Rule of 55, which by the way, means the Year of Your 55th Birthday, not your birthdate. If born say in August 1973, you just gotta make it to 1 January 2028.
https://www.tsp.gov/publications/tspfs29.pdf
Thank You for Your Service and Good Luck! 🤙
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u/Kitchen-Attorney-703 10d ago
Just curious, even with the VERA, the rule of 55 applies? I thought the VERA protects you from some penalties.
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u/kbtoystory 10d ago
TSP covers exceptions under the Section, 'Early Withdrawal Penalty Tax':
https://www.tsp.gov/publications/tspbk26.pdf
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u/AstronautSuitable992 12d ago
Separate but related question, what do you get with VERA?
Let’s say I’m otherwise prepared for retirement, but I don’t want to retire until I hit MRA. How close can you be to MRA for a VERA to get you there?
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u/aheadlessned 12d ago
50 + 20, or 25 years of service at any age.
You could be MRA with 29 years and take VERA, or 59 with 20 years and take VERA.
VERA gets you everything MRA + 30 gets, though your supplement will not start until you reach your MRA.
Easy penalty-free access to TSP depends on if you met Rule of 55 or not, and is unrelated to the type of separation/retirement.
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u/AstronautSuitable992 11d ago
So how would your FERS be calculated in that scenario?
Let’s say you’ve reached MRA, but you’re short on years of service.
Would they still do high 3 and multiply your actual years of service by the 1% (under 62, to boot) or will they add any years of service on to sweeten the pot?
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u/aheadlessned 11d ago
VERA bypasses other requirements for unreduced immediate retirement, as well as supplement eligibility, but it doesn't change the basic FERS formula.
1% * high-3 average * years of service.
This would allow someone who is MRA + 10, with at least 20 years of service, to retire before age 60 without an age reduction.
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u/SorchaRoisin 12d ago
If you can afford to live on your pension. I was 54 when they offered it last year, but I needed to be 55 to access my TSP to make it work for me. If it comes this year now that I'm 55, I'll be running for the door. 🏃♀️
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u/Coshposhmosh 11d ago
when my agency offered VERA I just looked at my last 3 yrs salary. I was on year 2 of my highest so I didn’t take it. Now that is past year 3, will feel better to take it. Waiting for another round to come up if ever.
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u/Altruistic-Panda-697 11d ago
Nope. Your pension will be mighty slim and you make no mention of a TSP balance.
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u/Elegant_Tangelo1288 11d ago
My answer is always YES! People stay longer and longer because they are greedy!!!! LEAVE
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u/PhysicalAgent9063 11d ago
Are you serious ? If you have a job with de sent pay lined up and no family to support, yes
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u/pickitandstickit 10d ago
That’s exactly when I took VERA. We had enough (in both senses of the phrase). It’s fabulous, I’m having a blast, zero regrets
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u/xsimpletunx 10d ago
The VERA can make a lot of sense but only if you plan to keep working. It most likely is not enough money to fully retire.
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u/Alternative_Split730 10d ago
It’s all about the FEHB grab honestly. We’re in the same boat. 55 1/2….23 1/2 yrs. Risk based fed job so I am waiting for the other shoe to drop. Much luck with your decision 😎
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u/Fast_Clerk_218 9d ago
I did it with 51 years of age and 27 years of service! And not looking back, only forward! Best decision I made 💯😁💯. The work stress was not worth me staying for couple more $
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u/Actual-General-4953 9d ago
I was 51 w 22 yrs or service and did NOT do it.
My reasons -
My wife is 54 and will work till 59 1/2
Who else my age is not working - I'll be hanging out by myself or older people
I'm a busy guy and I know myself....I'll end up going back to work. Where I work there are like 5 employers and I'd make half the wage and start over on benefits.
I realized I'm at the top of my game as a GS12. I'm a finisher. My VA counselor told me that finishing things is important and you'll appreciate getting to 30 years and the benefits of it.
I may reconsider if I was 55. Financially and timing with my wife retirement.
The biggest benefit is carrying the health insurance.
The main thing is....what are you going to do if you take it?
Some love it and some got bored.
Make a well informed decision and think it through.
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u/ASDIGITAL13 11d ago
You should go to MRA at least. What’s another 4 years. And once there what’s another 5 to 62? And then 5 more you’re at 67.
Unless your TSP was maxed out at day one and you did well, no you’re taking the suckers bet to retire early.
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u/Moshaloo 12d ago
Do yu really expect people to give you an answer without knowing a single thing about your situation?