Thread: Early (aka Delayed) retirement strategy - not getting rich and getting by is okay

offroad. What is the other important information. Future Plan, Health at 57, spouses situation, any other investments/income etc.

There is more than money that goes into that decision.

Wouldn't you also get something at MRA +10. There's like a 3% penalty but you would still get something.

Originally Posted by offroad

Choice 2: But at that time (age 57) I would need to take a delayed retirement, and not get anything in pension until age 60. It means I can not get any funds from my pension (which might be only 15% pension, and I know thats not much.

Also, unless something has changed, if you meet MRA+10 at 57 then yes there is a pension to be had. It would incur a 25% penalty. 5% for every year before 62.

postponed retirement, ie postponed annuity-you don't get to keep your health insurance. Only get to keep health insurance is if go out on an immediate MRA+10 annuity. as I understand it.

Okay I follow some. Would buy Obamacare medical at age 57. Whatever is the cost. I will have MRA with 25 years.


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Understood. look into some of the retirement threads on the MB. Some of these folks have done these things already and are a wealth of knowledge.

MB?


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TSP Talk Message Board.

Got it


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There is DELAYED RETIREMENT and then there is POSTPONED RETIREMENT for federal employees. The Postponed one is better. You get postponed if you qualify for MRA+10 rules, but you get no money until age 62, but at that time you get FEHB back again. Is FEHB worth it, vs Obamacare? Not sure.

But I just found out that at age 56 (four years for me) that I can get MRA+10 retirement, with the 30% penalty. So the pension would be only a measly $12,500 on a formerly $100k salary. (thats $20,000 for 20 years service on a $100k salary high three, with subtracting 30% down to $12,500 a year).

Actual realistic considering plan? -- Retire with POSTPONED MRA+10 retirement at age 56, and dont take any pension until age 62. Work from 56 to 62 at another job that I consider ideal that I absolutely love ($20,000 a year - as no one pays well). Take money out of my agressively performing TSP and 401k accounts to suppliment my income (whatever is possible without having large tax bite taken out). Get obamacare for insurance. At 67 start getting social security and medicaid.

Originally Posted by offroad

There is DELAYED RETIREMENT and then there is POSTPONED RETIREMENT for federal employees. The Postponed one is better. You get postponed if you qualify for MRA+10 rules, but you get no money until age 62, but at that time you get FEHB back again. Is FEHB worth it, vs Obamacare? Not sure.

But I just found out that at age 56 (four years for me) that I can get MRA+10 retirement, with the 30% penalty. So the pension would be only a measly $12,500 on a formerly $100k salary. (thats $20,000 for 20 years service on a $100k salary high three, with subtracting 30% down to $12,500 a year).

Actual realistic considering plan? -- Retire with POSTPONED MRA+10 retirement at age 56, and dont take any pension until age 62. Work from 56 to 62 at another job that I consider ideal that I absolutely love ($20,000 a year - as no one pays well). Take money out of my agressively performing TSP and 401k accounts to suppliment my income (whatever is possible without having large tax bite taken out). Get obamacare for insurance. At 67 start getting social security and medicaid.

You sound like you are in the same boat as me, since I have been researching this option: 46 YO/21 YOS and 3 possible job offers at around +40K of what I currently make. If I defer my retirement, and use the overage, 26,500 after taxes to pay off house 22 years early, then I can coast out into the wild blue younder at 57, bills paid, and choice of retirement location.