Financially speaking, the bottom line is this: make sure when you retire that your current and future income will be sufficient to cover your needs – and as many of your desires as possible! Image: Sergio Sergo/Shutterstock.com
By: Reg JonesIt’s that time again. Autumn is arriving and tens of thousands of employees are starting to wrestle with the question, “Should I retire?” About a sixth of the federal workforce already has met at least one of the several combinations of age and service time to make them eligible.
While you can retire at any time of the year once you are eligible, for reasons we will explore later in this series, by far the most common time for federal employees to retire is around the turn of the year.
Before you take the plunge, you need to discover whether that’s what you really want to do. Making such a radical change in your life requires forethought. To find out if you are truly ready to retire, you need to evaluate your current situation. Ask yourself some questions and be honest with yourself when you answer them.
For example, “Do I enjoy what I’m doing now? If so, am I ready to give it up? If not, is my main reason for retiring a negative one?” If that’s the case, think twice. You can live to regret decisions made when you are frustrated or angry. Retire when you are ready – not on impulse.
If you can get over that hump, ask yourself this question: “What am I going to do with my time after I retire?” With average life expectations hitting the upper 70s, you could spend as much time in retirement as you spent working. That’s a lot of hours to fill.
Of course, if you are one of those who are well on their way to realizing a post-retirement goal, that’s great. You may already have started a part-time business or be spending your off hours in satisfying non-business activities, such as hobbies and volunteer work. On the other hand, if you don’t have anything specific in mind, it’s time to start thinking hard about what you would do in retirement.
When you know why you want to retire and what you hope to do with your new found freedom, it’s time to figure out if you can afford to retire. Will you have enough income to enjoy the lifestyle you’d like to have? If not, are there any income-producing opportunities out there that will help you make up the difference? Depending on your skills and abilities, there may be quite a few. Or maybe not—especially if your work was highly specialized to the government. Be honest with yourself.
Financially speaking, the bottom line is this: make sure when you retire that your current and future income will be sufficient to cover your needs – and as many of your desires as possible!
So there you have it, a three step approach to making a retirement decision: 1) decide if you are ready to retire; 2) figure out what you will do with your time when you retire; and 3) find out if you will have enough money to enjoy your retirement.
Former head of retirement and insurance policy at the Office of Personnel Management, and longtime FEDweek contributor, Reg Jones is known throughout the federal workforce community as an authority on pay and benefits.
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
The Best Ages for Federal Employees to Retire
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process
