By ‘Early Retirement’ we understand a retirement plan in which the employee decides to stop working, prior to the statutory age of retirement as defined by the company, along with financial benefits. But it should be noted here, that the benefits enjoyed while taking ‘Early retirement’ are comparatively less than would have been, if the employee would have waited till the stipulated retirement time.
Since there are a variety of retirement plans, it becomes a little difficult to be able to comprehend the specifications of these plans properly without any assistance. Linda O. Foster is an expert in understanding the benefits the federal employees are chosen to enjoy. Therefore it is easier for experienced person to guide you correctly.
Under this type of retirement there is a reduction in the annuity in every month, until you reach the age of 62. This reduction is done at the rate of 5%, but if you have already served for 30 or even 20 years and the date of your annuity commences at the age of 60, then there will be no reduction. This reduction can be eliminated by postponing the date of beginning your annuity to even 2 days before you turn 62 or the minimum retirement age (MRA).
Early retirement is not always availed by the employee’s discretion, sometimes the employee may even be asked to take such a retirement. The enforcement of early retirement by the employer may be on the grounds of recession, i.e. when the company decides they are no more in a condition to cater to so many employees, or if there is a major reorganization or relocation of the company.
However, for enforcing this retirement in the interest of the agency, the agency has to take permission from higher authority and even promise to grant you all the benefits that you were eligible to acquire as an employee. Once they acquire the green signal, they notify you with a letter.
There are financial service firms that assist you in understanding this letter and all the other causes related to this retirement. You need to very carefully understand the pros and cons of consenting to an early retirement and what are the advantages you will be receiving following the process. Linda O. Foster from Washington has gathered experienced in this regard over the years and is a reliable person to turn for help in this matter.
Remember, that accepting an optional early retirement has its effects on your pension too. According to any agency’s norms the statutory retirement age is 65, for which you are to receive the fixed benefits in your pension. Hence, if you work for anywhere less than that age you will definitely be missing out on at least some of the pension benefits.
This is the time you could negotiate with your agency asking them to make some amends so that you receive a good amount of pension. The possible adjustments your employer could make are: reducing adding years to your service or to your age.
There are times when you may not be able to discern whether or not you should take the offer, it is best in such times to seek professional help as the time span to decide is very short.