Reasons Federal Employees Retire at 62 | Financial Advisor | Christy Capital Management скачать в хорошем качестве

Reasons Federal Employees Retire at 62 | Financial Advisor | Christy Capital Management

Today we’re talking about reasons why federal employees want to retire at 62. One of the reasons starts with eligibility. You can retire at your MRA +30 years of service. Your MRA would be for your birth year. You can also retire at age 60 with 20 years of service. And you can also retire at age 62 with only five years of service. So for some people, age 62 is their first eligible time to retire. A second reason is you can turn on Social Security at 62 if you want. Age 62 is the earliest age you can turn on social security. For some people to make the budget work to retire, they need to wait until age 62, so they can turn on their pension and turn on their Social Security. The third reason 62 is chosen for some, is because 62 is when cost of living adjustments or COLAs kick in for your pension. If you retire prior to the age of 62, there will be no cost of living’s for regular employees until the age 62. If you are special provisions, there are COLA’s the whole time. But for regular FERS employees, retiring at 62 means you will begin to get COLA's immediately. The last reason, and maybe the most popular reason that people retire at age 62 is because of the enhanced annuity. If you are age 62 with at least 20 years of service, than you get 1.1% times your high three, times your number of years of service. Regular FERS employees get 1%. So this is a 10% raise if you can wait until 62 with 20 years of service. The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.