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Retirement Planning


Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.


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Luke101  
#1 Posted : Thursday, October 3, 2019 7:08:56 AM(UTC)
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Is it possible to increase annuity contributions to get a bigger retirement. I just became a federal employee at 44 years old. That’s kind of late compared to my peers. Some of my peers have 35 years service and will get a handsome retirement. So I’d like to accelerate my retirement. Is this possible?
TheRealOrange  
#2 Posted : Thursday, October 3, 2019 8:06:14 AM(UTC)
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Originally Posted by: Luke101 Go to Quoted Post
Is it possible to increase annuity contributions to get a bigger retirement. I just became a federal employee at 44 years old. That’s kind of late compared to my peers. Some of my peers have 35 years service and will get a handsome retirement. So I’d like to accelerate my retirement. Is this possible?

I don't think so. If you have previous military time, or federal service prior to 1989 for which retirement deductions weren't made, you can probably make service credit deposits so you can count that time. But, I have never seen anything indicating that you can voluntarily increase your retirement deductions to somehow accelerate or increase your retirement. Even if you added retirement deductions, you would still need to meet the required age and years of service requirements. I just don't think it's possible to do. You can, however, contribute the maximum to the TSP so that it is a bigger portion of your retirement funds once you reach the age and years requirements.
smithandjones  
#3 Posted : Thursday, October 3, 2019 8:35:14 AM(UTC)

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Put up to 19K (+ any matching funds you receive) into your TSP a year. 25K (+ matching) when you are over 50 years old. That is a better deal than buying years in a pension would be if it were possible. And the choice is easy because it isn't possible as far as I know.
Endless Summer  
#4 Posted : Friday, October 4, 2019 3:39:59 PM(UTC)
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Originally Posted by: Luke101 Go to Quoted Post
Is it possible to increase annuity contributions to get a bigger retirement. I just became a federal employee at 44 years old. That’s kind of late compared to my peers. Some of my peers have 35 years service and will get a handsome retirement. So I’d like to accelerate my retirement. Is this possible?


You're still relatively young, By maxing out your TSP contribution, $19k currently with a boost to $24.5k at 50 you should be in pretty good shape.

Doing that, assuming a reasonable 8% avg return, you'd hit 65 with about $1.1 million in your TSP. That's 21 years from now. As for increasing your pension, a lot of folk will try to spend their last three years in a place like DC where the locality pay is high. This runs up their high three years' average.

Also, working over 20 years increases the multiplier and adds 10% to your pension.
roger.d  
#5 Posted : Friday, October 4, 2019 5:56:23 PM(UTC)
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Unfortunately you started late in life for a federal career. You will need to work until age 62 in order to retire without loosing part of your pension.

As mentioned, save as much as you can in the TSP and in IRA'S. 19k/5500.

Forgo the new car ever 3 years. Buy a good used 3 year old car. Drive it for 10 years, better is 15 years.

Learn to discipline yourself, so someone else doesn't have to
10years2retire  
#6 Posted : Tuesday, October 8, 2019 7:08:47 AM(UTC)
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Originally Posted by: Luke101 Go to Quoted Post
Is it possible to increase annuity contributions to get a bigger retirement. I just became a federal employee at 44 years old. That’s kind of late compared to my peers. Some of my peers have 35 years service and will get a handsome retirement. So I’d like to accelerate my retirement. Is this possible?


Do not waste your sick time, it can add up to a few months of extra credit, and be sure to max out your salary cause you're paid a pension based on high 3. I am waiting for either a rif with age reduction waived, or till I hit 60 with 14 years and take a hit with the 10% reduction
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