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If you have a simple exit strategy that provides the best deal for you in retirement, there is a good chance it may be wrong. Or at least not very simple.
Short answer: Both require considerable thought, if you want to wind up in the best, safest place possible!
Timing your retirement can be tricky, but putting thought into when you leave the federal service can pay off in the long run.
It isn’t the year that matters, but the month of the year that you decide to retire. So if you’ve got a friend hoping to take advantage of a higher COLA tell him or her that the clock is ticking.
In most cases there are a number of “best dates” each year to retire. Even more importantly is picking the actual year itself. What’s best for you may not work for a colleague with the same service time and salary level. So how do you find that magic moment?
Is it worth considering working longer to protect your buying power in retirement? Or is that too horrible a concept? Many will probably conclude it's worth putting it high up on their retirement planning checklist.
When it comes to planning your federal retirement, there is no such thing as a dumb question. Some may seem strange, off the way, but if you’ve got a question there is probably an answer you didn’t know about. Or one that surprises you.
The good news is that federal, postal, military and Social Security retirees in January will be getting the largest cost of living adjustment they’ve had in years. That is also the bad news!
Every time there is a federal pay raise AND a cost of living adjustment for retirees, some folks figure they can get a piece of both. While it sounds good in theory, it isn't so simple.
With 30-plus plans to choose from, many working feds and retirees go into shutdown mode and do nothing during the annual health insurance open season. This year it ends on Dec. 13. But that won’t help if you don’t shop around. Inertia is easy.
One of the big differences between government and the private sector is the field of labor relations. In industry, it is usually disgruntled workers who go out on strike.
Have your career plans changed some, a lot or completely since the COVID pandemic? Has the retirement tsunami, first predicted in the 1990s, actually started?
For somebody with a long retirement horizon ahead of them, deferring Social Security until age 70 could boost their benefit 68%. Tough call. But one worth considering very carefully.
With inflation on the rise, a growing number of feds are crunching the numbers to weigh the financial benefits of working another year or two.