Work is an incredible thing. When we enjoy our jobs, it gives us a forum to think, create, and contribute.
But unfortunately, (as we all know) it can also be a major source of bureaucracy, frustration, and stress. For those that don’t enjoy their work, retirement planning comes a little more naturally because they would like to leave as soon as possible.
But regardless of whether you love or hate your job, I believe we should all be planning to retire as soon as we possibly can.
Let me tell you why.
Options Are Everything
A key source of happiness for all of us is when we are able to dictate our own path and make our own decisions. But unfortunately, I have seen far too many situations where because of the lack of planning, people aren’t left with any options. They are forced to do one thing or another because they have no other choice.
For example, some people are forced to work longer than they’d like because they simply can’t afford to retire.
When I say that everyone should plan to retire as soon as possible, that doesn’t mean that everyone has to stop working if they enjoy what they are doing. It just means that now you have the option to retire as soon as possible.
I have even seen people start to enjoy their work more when they know that they can afford to quit any time they’d like.
Early Out Retirement
Every now and then when an agency is downsizing or reorganizing, they will offer some of their employees an early out retirement (AKA VERA). And if this is offered to you then it is an incredible opportunity to retire before you’d otherwise be eligible with full benefits.
I wrote a full article about early out retirement here.
But I have talked with many federal employees who were offered early retirement but were simply not financially prepared to take it. They would have loved to retire but they simply needed more time.
By preparing for retirement as soon as you can, you at least give yourself the option to take the early out if it is offered to you.
Know The Rules
By starting the planning process early, it gives you time to learn and understand all the rules that come with retirement.
As a federal employee you are involved in the FERS retirement system, Social Security, the TSP, and potentially Medicare. All of these programs are complex and by understanding the rules that apply to you, you give yourself the best chance of getting the most out of these programs and retire confident.
