What am I missing

[tsptiger]

I have made saving a priority and have about $1.8M with about 4 years until I hit MRA (which is 56). In today's dollars my FERS and supplement will provide about $73000 annually. Using the 4% rule (assuming I get to $2M in 4 years) that will yield another $80K annually for an approximate income of $150K gross. With no state taxes on my annuity or TSP withdraws and no more TSP contributions, life should be pretty good?

Appreciate your opinions on things I should be thinking about that I may not be aware of?

Also, any ideas on other withdrawal strategies, besides the 4% rule?

[cashworth]

Congrats on some solid numbers!! How did you come to such a high number on your FERS + supplement estimate? I thought it was like 25% of your high 3 or something like that?

[tsptiger]

Years of service (36) x my high 3.

Supplement is expected payout at 62 divided by 40 x years of service.

[anomadtoo]

congrats! you are doing quite well and will retire happy it looks. You can also take the social security supplement early, if you wanted that is. Our pension portion is roughly 1% x Years of Service x High 3; but the longer you work over 30 years the 1% becomes 1.1% at some point, I forget.

[tsptiger]

62 it becomes 1.1

and don't forget added years of TSP contributions (from MRA to 62).

also remember if you go early, you don't get COLAs on your annuity until you hit 62. I just learned that in the last 2 years or so.

[anomadtoo]

and AL payout for a little pocket change roughly the max 240hrs is $15k I found out this morning.

[Scarfinger]

and AL payout for a little pocket change roughly the max 240hrs is $15k I found out this morning.

Max AL carry over is 240 + 208 if you retire on the last day of the year for a payout of 448 hours of AL. That is why some many retire in December causing some backlog in processing in January.

[anomadtoo]

ahhh good to know thanks

[ubascuba]

Can you explain what the supplement is? Is that the pension or something additional?

[anomadtoo]

I'm assuming (terrible I know) he was talking about the pension (FERS and pension).

[Aitrus]

Or maybe he's talking about the SSA Supplement that's payable to certain employees who retire early and meet certain requirements.

[DogPyle71]

Not sure if tsptiger is a special category employee (LEO, ATC or Fire) but COLA adjustments on your annuity start when you retire. Not a well known perk. Also, IRS allows a provision for Public Safety Officers to exclude up to $3,000 for qualified health insurance premiums from gross income. Another perk that is isn't well known. In January of this year I retired at 50 as a salary capped 1811/GS14. Hello pension goodbye tension!

[anomadtoo]

congrats DogPyle71! Must feel good.

[12squared]

COLA adjustments on your annuity start when you retire. Not a well known perk.

An open question: How the FERS COLA compare with the annual pay raises over the past several years? If maxed out in grade, would a pension 5 years into retirement exceed the pension based on staying employed for 5 years?

[fish8me]

DogPyle71, have you gotten your annuity process yet by OPM? I was one of those who retired on 12/31/2020 as an 1811 capped-out and I'm still waiting from OPM to receive any annuity or partial annuity. I have a long list of everyone I have reached out from Senators to my prior agency HR but as of yet,,, nada. I call OPM every 15 days and they blame COVID, personnel issues, and NFC for apparently missing paperwork they did not sent them with my package. It's a broken record with them. I was lucky enough to receive about 512 hrs. (240+240+ furlough hrs.) to keep me going for the last 7 months, but my story is incredibly sad... I don't know if your in my same situation or other recently retirees reading this are also going thru this same frustration as I am. If anyone can share anything that I should doing or talking to, please let me know...Thanks.