Q. I am 61 years old with 20 years of federal service. I am trying to figure out whether I retire now or closer to 62. My plan was to retire next year at the end of July, but I am interested in the supplement that is not granted until I am 62. I am not too happy at my job right now and am thinking about getting out a little earlier. What advice do you have?
A. There are two parts to your question: one is emotional and the other is financial. The answer to the first is that you should retire when you feel it’s the right time. The answer to the second requires a review of the dollars-and-cents implications. If you retire now, your annuity will be based on your years of full months of FERS service. Furthermore, you’ll be entitled to the special retirement supplement up to age 62, which is based solely on the amount of Social Security benefit you earned while a FERS employee. When you reach age 62, you’ll be entitled to a Social Security benefit based on your entire Social Security-covered work history,
If you wait until age 62 to retire, your annuity will be increased by one-twelfth of 1 percent for every additional month you are on the rolls. So, the longer you stay on the job, the greater your annuity will be. And if you wait until age 62 to retire, you’ll immediately be entitled to a Social Security benefit based on your entire Social Security-covered work history.
The decision is up to you.