It’s easy to conclude that retirement is sheerly based on numbers, especially when it comes to the federal government’s opinion on retirement. According to the CSRS and FERS retirement programs, employees are eligible to voluntarily retire after so many years of service or a specific age. Whether retirement is due to a disability or an early-out offer, there are many different rules to consider.
Federal employees are generally aware of the specific date they will meet either of those numbers many years in advance. Some of them spend time counting down the years, which turns into months and, eventually, days. As many hope for an early-out option to shorten their countdown, up to 15% of federal employees are currently eligible to retire & remaining on the job.
Federal employee retirement remains on a voluntary basis, aside from a few occupations, including law enforcement. With some employees remaining ten years past their retirement age, one must wonder why they would choose to stay at work time and time again. Aside from financial readiness, other personal factors may play a role in this decision.
One study concluded that individuals have the option of receiving benefits at different ages. There are also phased-in benefit reductions to monthly benefits before the full retirement age (FRA). For example, raising the full retirement age (FRA) beyond 65 would result in fewer people claiming benefits at 62 due to the severe reduction in benefits. Ultimately, the government offers a variety of policies to encourage later retirement.
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Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
