How Do I Know What Type Of Federal Retirement I Qualify For?
As a FERS employee, you have the right to know what federal retirement benefits you qualify for. To start, it helps to know what type of federal retirement plan fits your goals and needs. The Federal Employees Retirement System (FERS) offers a variety of federal pension plans that can offer financial assistance by the time you choose to retire. For a personal review of your federal employee benefits, reach out to Federal Educators today for a FERS benefits analysis.
FERS Is Your Ticket to a Happy Retirement
If you’re unfamiliar with FERS, this federal retirement program is designed to support federal employees with federal government retirement benefits like FERS pensions and more. Critical parts of the FERS basic benefit plan include:
- Social Security
- Thrift Savings Plan
- Other federal pensions
Every federal employee retirement plan should consider these FERS retirement benefits to make the most of the federal employee retirement system.
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Voluntary Retirement Makes Things Easy
Often considered the most natural way to retire, voluntary retirement is what you choose when you retire at the legal retirement age. This is the most common type of retirement as many federal government employees work until they reach this age limit. Voluntary retirement involves a simple process that’s easy for everyone to implement and is how retiring in America was intended.
Eligibility for voluntary retirement takes your legal retirement age and compares that to the number of years that you have worked. Most federal employees fall under this category.
Early Retirement Is Available to Premature Retirees
There may be reasons for needing to retire sooner than the legal retirement age. In this case, early retirement is a possibility for qualifying individuals. People may have their own personal reasons for wanting to retire early, with some of the most common being:
- Experiencing health issues that affect their ability to work
- Wanting to spend more time with family members
- Having a desire to pursue other passions
- No longer wanting to work
From an inability to work to simply wanting to stop working, everyone has their own reasons for seeking an early retirement. However, doing so may disqualify you for certain FERS pensions or you may receive less income in retirement.
Disability Retirement Accommodates Those With Needs
Disability retirement is available for those who are unable to work due to certain conditions that may hinder their ability to perform the necessary tasks. Qualifications for disability retirement may be more strict and require extensive paperwork but can be worth it for those who are able to apply. FERS annuities may also be different compared to those who undergo a more traditional means of retirement.
Deferred Retirement Saves Your Pension For Later
Federal employees may choose to leave the workforce early but wait until legal retirement age to receive their federal employee pensions. This allows them to stop working for their own reasons and still receive maximum retirement income without the fees or penalties of early retirement. To qualify for deferred retirement, a federal employee must work at a qualifying place of employment for at least 5 years before meeting retirement age.
Phased Retirement Rewards Extra Work
Those who wish to continue work after reaching retirement age may qualify for phased retirement. During phased retirement, a federal employee can work part-time while receiving federal annuities to maximize their retirement income. This is a valid option for those who feel like they can continue to work and want to receive more funds for their impending retirement.
Let Federal Educators Point You to the Right FERS Retirement Plan For You!
Not sure which type of federal retirement is for you? Reach out to learn more about your options and for guidance on adjusting your federal retirement plan to meet your future goals and needs. Start with a Federal Educators Social Security analysis today!