Many factors lead people to stay on the job, but a more pertinent question might be what drives a decision to retire. Image: STILLFX/Shutterstock.com
By: FEDweek StaffProbably you’ve heard co-workers say something like “The day (minute, second) I’m eligible to retire, I’m out of here.”
Probably you’ve heard others say something like “If X happens (or happens one more time) I’m out of here.”
Odds are that neither will follow through.
That’s something to bear in mind amid the latest supposed trigger to a mass exodus of federal employees: having more of them work onsite and for more often.
First, a little perspective on the issue of retiring at the moment of eligibility: it’s far less common than one would think from lunchroom conversations. About 15 percent of federal employees already are eligible to retire, a figure that has held steady for many years. That is, the numbers reaching eligibility are offset by the retirements of people who already were eligible but were continuing to work.
OPM hasn’t issued data on the issue in several years, but past reports showed that only about a sixth of federal employees retire by the end of their first year after eligibility. It isn’t until the fifth year that even more than half have retired, and at the 10th year of eligibility, a quarter are still on board.
What keeps people at work after retirement eligibility? Many factors, including the need for work income, desire to build up retirement benefits and retirement savings, personal satisfaction, sense of mission and so on.
The more pertinent question, though, might be what drives a decision to retire. A feeling of having achieved the financial security needed is a big part of that. But like the decision to stay, the decision to leave also has personal considerations.
There’s a common saying that people don’t quit their jobs, they quit their bosses. If you’ve been a federal employee long enough to have retirement in your picture, you’ve probably had your share of bad ones—not just immediate bosses but higher leadership. One consistent pattern in the annual Federal Employee Viewpoint Survey is that employee opinions of bosses decline with each higher level of supervision.
It’s no coincidence that with each higher level, the chances are greater that the boss will be a political appointee rather than a career person. If you’ve had a career of good political bosses in your direct line of supervision, you’re lucky—and exceptional.
The ultimate political boss of course is the President. Have you heard anyone say in the last several presidential election cycles, “If that guy gets elected, I’m out of here”? Did that person follow through?
Which brings us around to the warnings of turnover if agencies cut back on the relatively high rates of telework that have stayed in effect. Federal unions make that argument repeatedly, citing surveys they have conducted of their members. One of those surveys showed that half of employees said they would leave if the agency scaled back telework.
Some agencies in fact have already scaled back. There has been no sign of higher turnover due to that. (There has been some increase in retirements of late but that appears to be the result of retirements being deferred due to shutdowns of travel due to the pandemic.)
If you are eligible for retirement, or will be within a reasonable time frame, this could be a good time to decide if any one thing—yes, including having to work onsite every day—would trigger you to retire. History teaches that probably no one thing would do it. But if you are sure one would, or even strongly think one would, there’s no better time than now to start getting prepared.
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Primer: Early out, buyout, reduction in force (RIF)
See also,
OPM Guidance Addresses Pay Issues arising During, After Shutdown
