Are we about to finally see the "Retirement Tsunami"?

Civil Service Discussion.

Moderator: Aitrus

Post Reply
User avatar
MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Are we about to finally see the "Retirement Tsunami"?

Post by MakeMe$$$$ »

Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Are we about to finally see the "Retirement Tsunami"?

Post by crondanet5 »

Coupla comments.

First, there are a lot of baby boomers who have reached their retirement time and the figures stated in this article reflect that. It is not a lot of people who have just reached retirement eligibility who are running for the exit.

Second, I would suspect there are a lot of postal workers who got the message their job was going away and they have begun the process of applying for retirement.

Third, if I'm not mistaken, you can apply for retirement and then pull it if you decide to stay.

A long time back I met a man in the Air Force who was very proud he was going to retire at 20 in a month. He had 5 kids and a wife, rented a house off base. So he retired. And immediately his pay entitlement was cut in half before federal and state income taxes were subtracted from the amount he received. Figure 40% of his former monthly paycheck was all he got in the mail. Now this guy had it all planned out he and the family would go on a trip across the United States, starting in Alabama and going out to California and back. He was going to stay with friends and family along the way. He made it as far as Texas and then he ran out of money. He came back, lived in a really poor place and barely made ends meet. He could not find a job. The point I'm trying to make is that before these people take that federal retirement they better make sure they have sufficient money to live on and a place to live they can afford. Many people think they are going to get a job when they retire and then discover after they retire there simply are no jobs. The time to plan for your secure financial retirement is now.

BigMike
Posts: 220
Joined: Wed Sep 29, 2010 12:45 pm

Re: Are we about to finally see the "Retirement Tsunami"?

Post by BigMike »

I believe this is once again not going to be as dramatic an exit as predicted.

However, I intend to do my absolute best to make it come true. I have put in my paper work and intend to bail out this spring!!!

User avatar
MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Re: Are we about to finally see the "Retirement Tsunami"?

Post by MakeMe$$$$ »

BigMike wrote:I believe this is once again not going to be as dramatic an exit as predicted.

However, I intend to do my absolute best to make it come true. I have put in my paper work and intend to bail out this spring!!!


I think that if pay stays frozen, formula changes to High-5 and contributions go up then it becomes much more likely.

Good luck and what that first step as you bail. LOL
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

User avatar
JohnTroll
Posts: 28
Joined: Tue Aug 09, 2011 7:09 am

Re: Are we about to finally see the "Retirement Tsunami"?

Post by JohnTroll »

My outfit offers a retirement planning seminar (I believe most agencies do) and recommends we take it at mid-career (in class room or on-line) and end of career (class room). The SME's at the seminar recommend a five year retirement planning window during which you review/submit needed paperwork and do some financial planning. There are several "gotchas" that can develop on the way to retirement and the planning seminar helps to minimize the potential problems that most employees are not even aware of (like when you may access TSP or if your agency annuity will be reduced based on your retirement age etc.). Even so things don't always go to plan...

“The best laid schemes o' mice an' men
Gang aft agley.” (R. Burns)

Classmate of mine was going to retire in late 2008 (had his retirement package in and date set). We planned to do lunch while he was in town to go through retirement process. Next I hear from him he has taken a new position at HQ and had withdrawn his retirement application. He finally retired early this year so I see a link between his TSP and willingness to retire. He took a huge hit in 2008 and could no longer see retirement as affordable. Late in 2010 he felt secure about his TSP and filed his retirement paperwork again and this time made it out the door.

User avatar
flight23
Posts: 1342
Joined: Mon Jul 26, 2010 10:47 am

Re: Are we about to finally see the "Retirement Tsunami"?

Post by flight23 »

If they do make changes would they apply beginning the following year, or immediately when the legislation is passed?
@GlobalCollapse on Twitter
http://twitter.com/#!/GlobalCollapse

User avatar
MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Re: Are we about to finally see the "Retirement Tsunami"?

Post by MakeMe$$$$ »

The first thing I recall was phasing in increased retirement contributions beginning FY13. There are so many proposals being fired out that I need a score card. LOL
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

m.eddy
Posts: 78
Joined: Mon Sep 19, 2011 1:48 am

Re: Are we about to finally see the "Retirement Tsunami"?

Post by m.eddy »

John Troll, I had a lot of my guys got hit baddddd on 2008 and 2009. A gentleman that I meet two years ago said that folks in Corporate America that planned to retire in 15 to 20 years need to have $1.2 to $1.5 million in their 401K just to be OK. Granted our retirement benefits are "currently" better but our pay has always been somewhat lower than Corporate America. I take the position that we need to at least have that much in TSP and six months of living costs sitting in savings. The savings will tide you over until your retirement check starts rolling in and by the time you retire everything should be paid off.

Post Reply

Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".