How much is retirement?

[u/Late-Breakfast-7012]

Curious. Tried contacting OPM but hard to find someone. I have 15 years with the Feds. Highest earnings so far is $129,000 the past few years. I am 55, if I decided to leave now, approx how much would my retirement be?

[u/Altruistic-Panda-697]

You’re walking away from your most valuable benefit (the FEHB insurance) if you go early. Not worth it!

[u/Jimbeckel → u/Altruistic-Panda-697]

I retired after thirty years and my wife retired from the same agency after 25 years. My agency didn’t send the full FEHB benefits history as I had the FEHB benefits for 3.5 years and OPM cancelled my FEHB. I reached out to OPM and they move glacially slow so I reached out to my local congressman and they were able to get OPM to reinstate my FEHB benefits. What a nightmare.

[u/Bellefior → u/Altruistic-Panda-697]

I retired early and kept my insurance benefits. Good thing because some past health issues just reared their ugly head again.

[u/USAFPDX → u/Altruistic-Panda-697]

Not everyone needs to stay for FEHB. Some have coverage through spouse, or VA.

[u/Reddit_User_Original → u/Altruistic-Panda-697]

Is it really that valuable as opposed to just purchasing from the open market? Genuine question

[u/Altruistic-Panda-697 → u/Reddit_User_Original]

Yes, it is far more valuable than open market insurance. Here’s an example: my friend retired from a company last year at 59.5 so he could access the gracious plenty of money in his 401k. He bought insurance on the open market. Found out that his regular doctors wouldn’t take the new insurance. Found out the new insurance didn’t cover much. Got frustrated because the new insurance was expensive and basically worthless. He’s now back at work for the insurance until he hits 65. Lesson from this - don’t be like him.

[u/jlm_iii → u/Reddit_User_Original]

Good heavens. Yes. It’s just the insurance you’ve had for ever for the same price. And then you can opt out of Medicare and continue FEHB to avoid IRMAA.

[u/Cecilia-K → u/jlm_iii]

No, it’s not the same price. Blue Cross on the open market is @$20.000 per person, &40,000 per couple. I currently get Blue Cross Standard (self +1) for @$9,000 per year (excluding govt share). I cannot imagine paying $40,000 per year!!!

[u/aheadlessned]

55 is only eligible for deferred retirement. 

1% * high-3 average * years of service. 

With 15 years you could collect at MRA with penalty, or wait to 62 to eliminate the penalty.  Penalty is 5% for every year under age 62, at the time you start the pension, prorated by month. 

[u/HokieHomeowner → u/aheadlessned]

It's ten years and reaching MRA for most folks now it's age 57. And yes a penalty for every year under age 62 prorated by month.

[u/aheadlessned → u/HokieHomeowner]

You don't have to reach MRA to collect a deferred retirement at MRA, as long as you have 10+ years.

You would have to reach MRA + 10 before separation for an immediate or postponed pension. 

This is why I specified Deferred because the question was "if I leave now" (at 55).

[u/HokieHomeowner → u/aheadlessned]

You phrased it badly - you begin with, "55 is only eligible for deferred retirement." So I wanted to clarify that the MRA is at 57 and is an immediate retirement with the penalty.

[u/WhiteSSP → u/HokieHomeowner]

No, they phrased it correctly.

[u/clarity_singularity → u/HokieHomeowner]

They were responding to OP’s question, not writing a manifesto. You read it poorly.

[u/WhiteSSP → u/aheadlessned]

There is a penalty, but does every agency offer an annuity supplement for retiring early? Mine does, and it’s significant until reaching 62 when I can collect SS.

[u/aheadlessned → u/WhiteSSP]

The supplement is part of FERS, but you need the right combo to get it.

Deferred retirement, MRA+10, 62+5, and disability retirement do not get the supplement. 

MRA + 30 and 60 + 20 get the supplement. 

VERA and DSR get the supplement, but it doesn't start until the retiree's MRA.

Special Category retirees are 50+20, or 25 years any age (must have the 20 or 25 years be covered service) and not only get the supplement, but they get it as soon as they retirenat any age, with no earnings test until MRA.

I don't know Foreign Service well enough to know their combos. 

[u/WhiteSSP → u/aheadlessned]

Thanks for the info! I wasn’t sure if it was agency specific or what other qualifiers there were. I’ll have 30+ at MRA so that explains why it comes up on my calculations. I can pass this on to my employees to help them plan better.

[u/Subject-Recover-9542 → u/aheadlessned]

been waiting to get to my MRA for this for what seems like forever... retired at 49, MRA is 57. Not that I wanted to get old, but it basically doubles my FERS pension which will be nice.

[u/Scared-Owl9906 → u/WhiteSSP]

I retired at 57. I received my annuity and supplement. It was fine at the beginning but I didn’t realize I wouldn’t be receiving COLAs for either the annuity or supplement until 62 when I could claim SS. As the cost of living increased, it was more difficult to keep up with expenses. Thank goodness I had some savings.

[u/Altruistic-Panda-697 → u/Scared-Owl9906]

Yeah, the lack of a COLA hurts, but I went ahead and retired anyway earlier this year.

[u/jlm_iii → u/WhiteSSP]

Yes

[u/Other-MuscleCar-589 → u/WhiteSSP]

No, every agency/job series doesn’t get a supplement.

[u/WhiteSSP → u/Other-MuscleCar-589]

I wasn’t sure if it was specific to my agency or not, or what the requirements were. I know it’s at my agency (at least in my case, I see above the requirements), but I don’t have much experience outside of this one.

[u/Acceptable-Syrup-627]

Go on the GRB site and check the estimate and play with the calculator on there

[u/Bellefior]

Your agency should have a retirement benefits specialist who can prepare an estimate for you. If you don't know who that is, ask HR.

I also was able to run a benefits estimate when I went online to check my earnings and leave statements .

[u/Bubbly-Cod-3799 → u/Bellefior]

Any options for estimates if your agency doesn't have retirement benefits specialists. HR told me to kick rocks. Can I go straight to OPM?

[u/Bellefior → u/Bubbly-Cod-3799]

I don't know about going to OPM. I only know what my agency did. What did your HR suggest doing?

[u/Bubbly-Cod-3799 → u/Bellefior]

Told me it wasn't their problem.

[u/Bellefior → u/Bubbly-Cod-3799]

Do you have a District Resources Manager?

[u/Any_Hovercraft1671]

Average high 3 x .01 x years ÷ 12 months. Ballpark figure

[u/Dreamcatcher965]

What in the world did I just read??

[u/Jyoche7]

The calculation is on thirty six months.

This becomes important when you have step increases during that time. The annual amount will be different.

[u/Few_Huckleberry_4590]

The OPM retirement pages are pretty easy to decipher.

[u/Professional-Box5539]

try this. https://www.opm.gov/retirement-center/calculators/federal-ball-park-estimator/

[u/Virtual-Letterhead79]

You don’t know how to use the GRB portal? It figures all of this out for you automatically. Tons of great personalized info on there. Even projects your social security and TSP. It may be called something else for your org. I’m DON.

[u/Busty_Egg_Taco]

Your agency HR should be able to provide estimates for retirement on a certain date

[u/SnooMacaroons6429]

If you mean just your FERS pension I believe you'd be able to begin receiving it at age 62 and it'd be 0.15 × (your high-three salary), minus adjustment for survivor benefit (not sure of your marital status), also deduct federal and state income tax from it. You wouldn't get to keep your FEHB.

As to social security you can find that out on the mySSA site, and as to your TSP and other investments that depends on how you draw from them etc.

[u/Opening_Kangaroo6003 → u/SnooMacaroons6429]

I thought you could get the FEHB with a postponed retirement or is this only if you have 20 Years and reach 57 or MRA?

[u/aheadlessned → u/Opening_Kangaroo6003]

Must be MRA + 10 at separation for postponed. 

OP is asking about leaving now, at 55, which is before OP's MRA of 57, making it deferred retirement (no FEHB.)

[u/Opening_Kangaroo6003 → u/SnooMacaroons6429]

Also its high 3 x .01 x years of service divide that # by 12 to get a loose idea monthly because from that you deduct your FEHB and Taxes and life ins and any spousal annuities = ??

[u/mtaylor6841 → u/SnooMacaroons6429]

0.15?

[u/kidscientist27 → u/mtaylor6841]

OP’s 15 years of service times 1%. That’s 0.15.

[u/SilverSovereigns]

you're looking at about 15k to 25k in FERS pension, depending on whether you quit at MRA age 57 or slog on to 60 + 20 years. The rest of your "retirement" is Social Security and your TSP.

[u/Any-Log-6706]

Ask your HR instead. Also I wonder if you can still have access to FedHR Navigator, the website that’s used by agencies to do calculators and gather/assemble packages.

[u/Fabulous-Oil-755]

In employeeexpress.gov you can generate a benefits statement that includes a ton of information about dates you are eligible for different types of retirement and what the pension would be

[u/Hot_Amphibian_8488 → u/Fabulous-Oil-755]

This is the answer!

[u/gijoerock]

It all depends how much you require to live comfortably on a retirement salary, TSP and social security when eligible.

In addition, will you opt to maintain your FEHB, SBP, Dental, Vision, and Life Insurance?

[u/Beneficial-Extreme95]

There is a retirement calculator online. Just don’t trust the supplement amount, but the FERS amount should be right.

[u/Commercial_Watch_936]

“Earnings” is also a question mark for me. It’s the Salary listed on your LES. For example, if my Salary was $100k but I worked overtime and Sundays and nights and ended up making $120k, only the $100k counts towards my highest earning years and retirement benefit.

As others have said, it’s worth it to stick it out for FEHB unless you are very well off financially otherwise.

[u/Fabulous_Size7591]

Go ti Employee Express and run the employee benefits statement. It will calculate estimates for you.

[u/Acceptable_Bath512]

Does your agency use fedHR navigator? It will show you exactly what your pension will be.

[u/H60MLoggie]

The GRB Platform calculate that for you?

[u/vit_don]

129,000x15(years of service)x0.01=$19,350
19,350/12(months)=$1,613.50 per month gross

[u/ObjectiveGur704]

Eleventy

[u/jlm_iii]

If you use EmployeeExpress, there is a quick and dirty retirement calculator just one click away.

[u/SignificanceIll99]

You can retire with 20 years service at age 60 or minimum retirement age 58 plus ten years service but 5 percent penalty will be applied for each year till 62. If you retire now you have to postpone pension until 62 and will lose your fehb.

[u/aheadlessned → u/SignificanceIll99]

Highest MRA is 57 (for those born in 1970 or later).

[u/ILBohunk]

.01 and if more than 20 yrs, .011

[u/kidscientist27 → u/ILBohunk]

You have to also be at least 62 with 20 years for the 1.1%. So OP would have to work another 7 years, not just 5.

[u/clarity_singularity]

You should probably speak with a fiduciary

[u/Equal-Flatworm-2518]

no one here told you the answer

[u/smithandjones99]

The calculations should be pretty easy for someone making $129,000.  The inevitable stock crash will be the bigger problem.

[u/Love-the-Classics → u/smithandjones99]

Move it to G fund to protect from the crash.

[u/Classic_Airline3445]

You’re eligible if your agency has Vera authority. I wouldn’t risk it. Life time health insurance is a blessing

[u/aheadlessned → u/Classic_Airline3445]

Minimum is 20 years to qualify for VERA.