Federal Employee News

Monday, November 16, 2020

Assessing when you can afford to retire under the Federal Employees Retirement System

Assessing when you can afford to retire under the Federal Employees Retirement System

Snippet of Article: "... Suppose John will have 30 years of service this year, including six years of military service (for which he has paid a deposit) and 24 years under FERS. He's 59, so he's past the FERS minimum retirement age. If he retires with 30 years of service, his FERS basic retirement will provide 30 percent of his high-three average salary. He's been at the GS 13-10 level for the past three years. His current salary is $113,007. His retirement will be computed as: 30% x $108,027 (high-three average) = $3...Wait to retire at 62. Then his FERS benefit will be computed at 1.1 percent for every year of service, instead of 1 percent, a 10 percent increase..."

Source: www.govexec.com