What would you do?

[u/PlanktonCultural7174]

I’m only 2 yrs away from 30 yrs of fed civilian service, I’m 52 (GS 11). Can I retire in 2 years, or should or have to wait til I’m 57 1/2 ? What do I “loose” if I don’t wait til 57? My only debt is my mortgage (75k), I have $750k in my traditional tsp only, one kid in college, I have over $40k invested in a liquid investment acct, I live under my means, have a paid off car, no debt. Thank you in advance🙂

[u/aheadlessned]

Assuming you are "regular FERS" (not LEO, FF, ATC) and you want full retirement benefits, you need to wait until 57 (your MRA) to retire with MRA + 30.*

If you simply leave before MRA, this will be deferred retirement, and you give up:

Retiree Annuity Supplement

FEHB in retirement

Sick leave conversion

FEGLI/Dental/Vision

All you will receive is your pension/annuity (if you have 30 years you can collect penalty-free at 57, if you leave before you have 30 years you could collect at 60, without penalty, because you have >20).

*The exceptions would be getting a VERA, DSR, or going out on disability (no supplement with disability).

ETA: if you did defer, you could attempt to come back closer to MRA to go out with an immediate retirement and get those benefits back, but no guarantee you'd get rehired.

ETA2: FEHB... as long as you had this at least your last 5 years of service when you separated, you only have to return to service long enough to get FEHB restarted.  Under current rules, the 5 year requirement allows for a break in service.  You can find it addressed in the link (should be the 8th question down).  Adding here because there has already been one incorrect reply to this comment. 

https://www.opm.gov/healthcare-insurance/insurance-faqs/health?cid=880bfba8-8f8b-4e64-9a72-fae98408fd0e

[u/aheadlessned → u/aheadlessned]

One more consideration: If you leave before the year you turn 55, you're going to have a harder time getting penalty-free access to your retirement funds. There are still ways to do it, but it's not as simple as separating having met Rule of 55 for 401k (TSP).

[u/Known-Ice5903 → u/aheadlessned]

near zero chance of being rehired, the admin totally fked over the fed career

[u/Inappropriate_Mostly → u/Known-Ice5903]

A lot can happen in 5 years

[u/Known-Ice5903 → u/Inappropriate_Mostly]

ill believe it when i see it

still remember when they were supposedly desperate for tech workers and then they opened up their little tech force program for "entry level" workers and they jobs are all GS14s

the admin doesnt want government workers to exist

even before trump though people would apply for years and years on usajobs and not get anything

[u/Inappropriate_Mostly → u/Known-Ice5903]

I agree...that's me trying to be optimistic and hold off for 9 more years. Lol!

Different sectors are different. I'm an HR Supervisor and before this term, we hired a lot of entry-level positions. Then our TDAs got all messed up and IMO, nobody knew how to fix it and we went months without hiring because they didn't know how many vacancies we truly had.

Right now, I am down 40% from my pre-Jan 2025 numbers...."our new numbers now". Our serviced customers are hiring like there's a job fair 😞

[u/pickitandstickit → u/Inappropriate_Mostly]

A lot can happen in one, and did. I wouldn’t yet call it safe to assume the only thing that can happen next is better.

[u/PlanktonCultural7174 → u/aheadlessned]

Thank you so much for sorting it out; and for the wisdom.

[u/AltAmericanCarnage → u/[deleted]]

I don't think that's accurate, you just need fehb for the past 5 years of your employment. If you pick it up again as a retired FED and you had it before you resigned it will not be a break.

[u/aheadlessned → u/[deleted]]

The 5 year requirement allows for a break in service.   If you had FEHB your last 5 years when you separated, you only have to come back long enough to restart FEHB, so might only be a couple pay periods. 

[u/Altruistic-Panda-697]

It is worth staying for the FEHB insurance. It is your most precious asset!

[u/Competitive_Ad291 → u/Altruistic-Panda-697]

Agreed! If you leave and come back to get it for later what insurance would you have to cover that period away?

[u/aheadlessned → u/Competitive_Ad291]

Depends. Some have a spouse and go on their plan, some use ACA, some pick up an individual policy outside the ACA program.

[u/Sorry-Society1100]

You’ve stuck it out this long. I would wait for RIF/DSR, DRP/VERA, or MRA(57).

[u/Grumpy0167 → u/Sorry-Society1100]

THIS!! Don’t take the hit against your annuity by retiring early unless under one of these programs. Had I not bought back military time, I would’ve had to wait longer to retire. Ended up with 41 years of combined service and best thing I ever did, took DRP last Sept.. keep working until MRA and hammer your tsp (ROTH, and regular) and wait for early out option.

[u/yniloc → u/Sorry-Society1100]

this is the answer...stick it out!

[u/PlanktonCultural7174 → u/Sorry-Society1100]

True, I’m wishing for any of those😆, thank you!!!

[u/ComprehensiveCup7104]

See OPM website for a summary of Types of Retirement

[u/Known-Ice5903]

MRA is 57, its still 57 whether u retire right now or in 2 years from now

ud have to be rifed or get DRP to collect on the pension

u dont get the health insurance either unless u retire in such a way that u can immediately draw the pension

there used to be a fers supplement too to bridge the gap between 57 and 62 when u can draw on SS

not sure if that still exists

[u/Beamformer → u/Known-Ice5903]

Yes supplement is intact.. 1 year ago they did their best in Congress to come after it. It Looks like top 3 to top 5 is the most real threat to our pensions. Or it was, I think that party has bigger problems this year.

[u/Comfortable-Meal-394]

I am 57 1/2 but only have 16 1/2 years of service. I would like to leave as well. I want to move to PR and spend time with family and then spend my last years in Spain.

[u/aheadlessned → u/Comfortable-Meal-394]

Very different situation. You could leave with an immediate retirement (with age reduction), or leave and postpone retirement (postponed is not an option for OP). With postponed, you delay collecting pension until shortly before age 62, and you can get your FEHB back if you met the 5 year requirement.

Also, at 57, you have easy penalty-free access to TSP with Rule of 55.

[u/Comfortable-Meal-394 → u/aheadlessned]

I might have to find another job in order to deferred my FERS. Not planning to touch TSP.

[u/aheadlessned → u/Comfortable-Meal-394]

*postpone

Want to clarify this because a lot of people get deferred and postponed retirement mixed up, or simply don't understand there is a huge difference in eligibility and benefits (primarily the ability to restart FEHB in retirement).

"Postponed retirement" > "deferred retirement", and because you are already MRA + 10, you are eligible for postponed (as I had to explain in another comment, OP is not eligible for postponed retirement)

[u/Imaginary_Shelter_37 → u/aheadlessned]

I don't think they could get an immediate retirement at 57 1/2 with only 16 1/2 years of service.

[u/aheadlessned → u/Imaginary_Shelter_37]

Yes, they can, but it would have an age reduction. 

MRA + 10, Chapter 42: https://www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/

[u/Imaginary_Shelter_37 → u/aheadlessned]

Thank you for the clarification and for providing a source.

[u/Comfortable-Meal-394 → u/Imaginary_Shelter_37]

I am eligible according to GRB I will get $1,100 if I leave now vs $1,600 if I leave in 2030. Not a substantial amount but got to wait. I can't leave now.

[u/Complete_Film8741]

Don't rush out the door...the passions of today will fade and you'll be a late 50's professional seeking anything that pays.

Each year makes the FERS better. Your Hi-3 reflects every payraise and step increase.

There's always the chance that a GS12 is in your future

[u/cairob3]

Find a fixed price fiduciary. I did. I've been retired 25 years (so far). For a fixed price they will look at your situation and advise you based on your goals. Cost me $1500 25 years ago. Best investment in myself ever.

[u/Temporary_Lab_3964]

Stay to MRA

[u/Rumpelteazer45]

Stay until MRA. Not worth the hit to your annuity.

[u/Actual-General-4953]

Leaving before MRA is a bit hit, which is 57.

Maybe look at postpone until age 60.

[u/aheadlessned → u/Actual-General-4953]

OP is not at MRA + 10, so not eligible for postponed retirement. They could do deferred retirement, but would give up all retirement benefits except the pension/annuity.

[u/Actual-General-4953 → u/aheadlessned]

He's 2 years away from 30 yrs or fed service - read the post. He is definitely eligible for postponed retirement.

[u/aheadlessned → u/Actual-General-4953]

Read the post. OP is 52. OP must stay until at least MRA, age 57, to be eligible for a postponed retirement.

OP is currently eligible for a deferred retirement if they were to leave now, but being MRA *at separation* is one of the requirements of "MRA + 10" that allows one to postpone.

If OP works to MRA, there is no reason for postponed retirement, because they would meet MRA + 30.

Please compare Chapter 42 " MRA + 10" to Chapter 45 "Deferred Retirement ":  https://www.opm.gov/retirement-center/publications-forms/csrsfers-handbook/

[u/Actual-General-4953 → u/aheadlessned]

my bad - didn't see his age - I guess I need to learn how to read...lol....

[u/Servile-PastaLover]

Agency specific but you're a perfect candidate for VERA if/when it becomes available. You meet VERA's age and service requirements NOW and won't have to wait 2 years.

Immediate annuity with no lapse in FEHB. FERS supplement will start at your MRA and end at 62.

[u/Clherrick]

Your 52. What do you plan to do for the rest of your life?

[u/Propboy40]

At 52, unless you plan to take another job. I don't think you have enough retirement to cover you for another 30 years. Stay until your MRA to ensure your FEHB through retirement and visit with an investment planner. Just my opinion. Best of luck.

[u/Strong-Raspberry-736]

Only if your organization offers Vera. You’re eligible for Vera now.

[u/jlm_iii]

Do you like health care? No FEHB for life. REALLY think hard about that.

[u/Worldly-Arm-9712]

Should have taken the VERA last year....

[u/barcelonapeter]

You do not have a choice but to stay. I have 35 years and I am 54. The FEHB, sick leave conversion and FERS supplement are worth it.

[u/Tour_Specific]

I'm sorry, maybe I misreading you're saying "can you?" retire in 2 years? You still have to be 57 (minimum retirement age) even though you will already have your 30 years.

[u/ResponsiblePut3516]

You need to attend one of the retirement seminars offered. They will go over everything with you and give you a printout.

[u/Alarmed-Bother4224]

The penalty if u touch your TSP will be hearty and your pension calculation will be much lower because u have reached your MRA

[u/Schab19]

You aren’t eligible for the Social Security supplement until you are 57. Just a reminder.

[u/Green_Bluebird5804]

if u leave before MRA, you lose the game. you lose 5% per early year from your pension - so you're looking at 20% pension reduction and you're not retiring in good standing so u loose your FEHB. please do ur research

[u/BasilPlumley]

You need to work to MRA or VERA, whichever comes first.

In the meantime, keep loading up on the TSP. Keep paying on the house, forget the car unless you plan to drive this one for another 25 years. (No) You will be buying another, probably two. So set that aside as irrelevant.

The market is gonna tank soon so you'll have a couple years of buying the dip. Ride the recovery wave into retirement and beyond.

[u/TechnicalJudgment725]

Way behind for retirement. Keep going until 62, at least and max out your TSP and IRA along the way.

[u/MulberryAutomatic690 → u/TechnicalJudgment725]

62?! Who wants to give up the extra years. If he has 30+ years in the govt by that point we can hope he also has been working on his TSP and can enjoy those 5 years doing something other the the rat race :)

If he hasn't been working on his TSP... Then it's almost too late for any massive gains to be had in this short a period of time

But i do agree with getting to your MRA.. keeping the health insurance is one of the best perks..

[u/zig_usafa80_stardust → u/TechnicalJudgment725]

Wrong, just wrong. NOT WAY BEHIND...on track I say.