Advertisement
retirement

Should You Put Your Countdown to Retirement on Hold?

Federal employees have a lot to gain (how's $10,000 more per year in retirement sound?) by sticking it out until age 66.

Few milestones in life are as eagerly anticipated as retirement. You may already even be preparing for the magical age of 62 — the earliest age you can draw Social Security. The thought of working an extra four years to the full retirement age of 66 might not be a sacrifice you’re willing to make.

Federal employees have a complicated set of benefits. For some, they could fall into different retirement plans. Those who began work before January 1984, for example, were hired under the Civil Service Retirement System, CSRS. Those hired after January 1984 became part of a new plan called the Federal Employees Retirement System, FERS. These employees were also required to pay into Social Security.

Women’s Risk Factors

Female federal employees face a unique set of issues when planning retirement. Historically, women earn less, don’t have enough saved, don’t work as many years (because of such reasons as caring for children or other loved ones) and in general have low retirement confidence. Some married women may expect that their spouse will take care of them, but that doesn’t always happen. Therefore, women often take fewer proactive steps in planning for retirement.

Advertisement - Article continues below

Today, women are outliving men in every country in the world. According to the Social Security Administration, a woman turning 65 today can expect to live, on average, to 86.6, compared to 84.3 for a man. In addition, it’s important for women to have a strategy in place for long-term care, since women make up the majority of those living in nursing homes.

A Simple Solution

The golden rule for retirement planning is earn more, save more and spend less. Remember the extra-four-year calculations above? They’re looking more attractive.

Hold off on that retirement celebration. Instead, begin a four-year countdown and look forward to a retirement that will allow you to comfortably enjoy your senior years.

Rozel Swain contributed to this article.

Advertisement

About the Author

Ann Vanderslice, RFC, Investment Adviser

President and CEO, Retirement Planning Strategies

Ann Vanderslice, president and CEO of Retirement Planning Strategies, specializes in helping federal employees understand and maximize the value of their benefits and plan for retirement. Vanderslice holds the Registered Financial Consultant designation from the International Association of Registered Financial Consultants. She is the author of "FedTelligence 2.0: The Ultimate Guide to Mastering Your Federal Benefits."

Advertisement

Most Popular

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check
Coronavirus and Your Money

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check

The deadline for seniors and veterans to request an additional $500 stimulus check for a dependent child is approaching fast. See how you can claim yo…
September 25, 2020
Trump Promises $200 Prescription Drug Card for Seniors
Medicare

Trump Promises $200 Prescription Drug Card for Seniors

Medicare beneficiaries will soon receive a debit card in the mail that they can use to pay for prescription drugs.
September 25, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020

Recommended

14 Social Security Tasks You Can Do Online
retirement

14 Social Security Tasks You Can Do Online

Why visit a government office to get your Social Security business done? You can do much of that online.
June 26, 2020
3 Reasons to Wait Until 70 to Claim Social Security Benefits
social security

3 Reasons to Wait Until 70 to Claim Social Security Benefits

In a rush to file for Social Security benefits at age 62? Many people are, but slow down and do the math first.
September 29, 2020
Should You Retire During a Pandemic? 3 Things You Should Know
retirement planning

Should You Retire During a Pandemic? 3 Things You Should Know

You may have no choice but to retire early, so make these three crucial assessments now to see where you stand.
September 28, 2020
Financial Advice for Worried Airline Pilots Right Now
careers

Financial Advice for Worried Airline Pilots Right Now

Furloughs, job cuts and early retirement are on the minds of many pilots. Now is the time for them to get their finances in order.
September 28, 2020