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Should you wait until age 62?

April 16, 2021 | FERS PensionGeneral Financial Planning

FED Facts Friday - FERS - Should I wait for 62 or take pension at FRA

As a federal employee covered under FERS, you have an unreduced pension under certain conditions

One of these is by reaching 30 years of credible service - This qualifies you to take your ,pension at your FRA or full retirement age

But waiting until you're 62 grants you an additional 0.1 on your multiplier factor - does that really matter

0.1 is actually a 10 percent increase - while nit might not seem like much, every cost of living adjustment (cola) is on this higher number

$we've done the math, of course depending on your HI-3, this could be 200-600 plus dollars more pe month. but here is the real factor$

Every cola is now on a higher value. That compounds ove you retirement timeline and it adds thousands to your monthly income. Not bad at all