Phased Retirement Option

Civil Service Discussion.

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Aitrus
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Phased Retirement Option

Post by Aitrus »

Just found this article that lightly covers an upcoming option for civil service retirees. What do you guys think? I can see both upsides and downsides to this.

http://www.myfederalretirement.com/public/1062.cfm
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crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Phased Retirement Option

Post by crondanet5 »

Reads to me like another way to push older workers out the door. Naturally, the phased annuitant will be dazzled with the opportunity of withdrawing TSP money to make up the difference in pay. But as long time readers know, my position is you do not touch your TSP savings until you must begin withdrawals at age 70.5, and hopefully you save it in a taxable brokerage account for the time when you need it to cover "old" age needs or medical care. Anyone planning this should really sit down with a really good ceertified financial planner to be sure they have all corners tacked down. Even then I don't trust it. Say you took the phased retirement but then discovered you needed more money to live on. Do you honestly believe your department would willingly take you back with open arms when they have already replaced you with a younger worker eligible for less vacation days and paid less? As Princess Leia said in Star Wars Episode VI, "I have abad feeling about this."

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