Many older Americans reach retirement age, and realize that they aren’t quite ready to entirely stop working. In some cases they need the extra income provided by part-time employment. In other cases, they enjoy their jobs and want to stay active. They may even be disabled, and unable to work full-time, but able to continue working part-time, Whatever the situation, federal employees are lucky, because they may be eligible for something called phased retirement.
Under the Phased Retirement option, federal employees can begin drawing their retirement benefits while continuing their employment on a part-time basis. This option became available on November 6, 2014.
The benefits of phased retirement are numerous, but include:
● the ability to keep older, experienced workers engaged with the agency
● providing younger employees with access to decades of knowledge and experience
● a more effective, efficient government
● unique mentoring opportunities for employees
● the ability for older workers to continue being active
● greater financial flexibility for those who might otherwise retire completely
If you’re considering retirement, it is wise to pause for a moment and decide whether you’re really ready to live on a fixed income for the rest of your life. Many retirees are ambitious about their futures, but inflation and the rising cost of healthcare quickly overtake their budgets. In these cases retirees often find themselves looking for part-time employment to supplement their retirement income. And of course, obtaining employment can be difficult in today’s economy.
The Phased Retirement option allows would-be retirees the opportunity to continue earning at their current rate, while preparing for a full retirement in the future. It can be a smart move for both financial and personal reasons! If you’re considering a Phased Retirement, talk to your immediate supervisor about the options available to you. And as always, consult with your financial advisor about how Phased Retirement might affect your future plans.
14641 – 2015/6/30
