If I retire age 59 under Postponed Retirement can I collect the SRS – Kenneth
Federal workers have three main parts to their retirement: a pension, Social Security, and a savings plan called the Thrift Savings Plan (TSP). This article explains when you can get the Special Retirement Supplement (SRS) if you choose to retire early.
What Is a Postponed Retirement?
A postponed retirement lets you stop working early but wait to get your pension. You can do this if you’ve met the age requirement (between 55 and 57) and have worked for the government for at least 10 years.
Why Choose a Postponed Retirement?
Many people choose a postponed retirement to keep their health insurance. To keep your health insurance when you retire, you need to:
- Have had it for at least five years before retiring
- Be able to start getting your pension right away
If you wait until you’re 62 to start your pension, you won’t have to pay extra fees for retiring early.
Can You Get the Special Retirement Supplement (SRS)?
The SRS is extra money to help you before you can get Social Security at age 62. But not everyone can get it. To get the SRS under a normal FERS retirement, you must:
- Met your Minimum Retirement Age (MRA) and have worked for at least 30 years, or
- Be 60 years old and have worked for 20 years
If you choose a postponed retirement, you will not be able to get the SRS
Example:
If you stop working at 59 and do a postponed retirement and begin receiving your pension at 62, you won’t get the SRS because you didn’t meet the age and service requirements under the FERS mentioned above.
How to Apply for a Postponed Retirement
When you apply for a postponed retirement, it’s important to do it right so you don’t lose benefits. You should:
- Say you want your retirement to start on the first day of the month before you turn 62
- Check your paperwork carefully
- Ask for help if you’re not sure what to do
Main Points to Remember:
- A postponed retirement lets you delay your pension and avoid age-reduction penalties
- You must be able to start your pension right away to keep your health insurance
- You can’t get the SRS if you choose a postponed retirement
- It’s important to fill out your application correctly
Understanding these things can help you make a good choice about when to retire. For more information, you can visit the OPM website, or consult with a FERS Benefits expert.
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ABOUT THE AUTHOR
Micah Shilanski, CFP®, is a distinguished financial planner known for his deep commitment to providing exceptional advisory services to his clients. As the founder of Plan Your Federal Retirement, Micah has dedicated his career to helping federal employees understand and optimize their benefits to ensure a secure and prosperous retirement. His expertise is widely recognized in the industry, making him a sought-after speaker and educator on financial planning and retirement strategies.
Micah’s approach is client-centered, focusing on creating personalized strategies that address each individual’s unique needs. His work emphasizes the importance of comprehensive planning, incorporating aspects of tax strategy, investment management, and risk assessment to guide clients toward achieving their financial goals.