The United States retirement system has many different types of pensions that seniors and other citizens can enjoy. Not only do we have retirement based on age or disability, but FERS also announces that there are up to 3 other types of retirement. In total, there are 5 types of it that FERS has registered.
So if we are thinking of applying for retirement we should look at the list of possible options for FERS, to choose the one we like the most. Not only should we consider which option we like best. But also which option is the most profitable for our particular case.
Choosing the best for the golden age of stop working is essential if we want to have the best possible golden years. And not only that, but it is also important to remember that retirements and pensions are not just for seniors, but for citizens of all ages.
Once we have located the retirement option offered to us by FERS, we will only have to apply for it if we are eligible. It is a very simple process in most cases, so we should not encounter any problems in doing so.
Types of retirement under FERS
It is important to keep in mind that the FERS is an official body, so the types of retirement we are going to see here are also official. We are not talking about pension plans to receive extra money during retirement or anything like that. What we are looking at are the types of plans that exist and that FERS has announced through its website.
In case we have any problem with these types of retirement, we should contact the FERS directly, since they are the ones who offer this information so that we know about the types of retirement.
Pay close attention to all the types of retirement that there are, since you could fit in one of them.
This type of retirement is the most common in this field. In order to apply for this type it is indispensable to have a number of years of creditable service. Without these years of service it is impossible to have this type of retirement.
The FERS can accept this type of retirement depending on several elements. Therefore, check that you meet the requirements before you try to apply for it.
Although Early Retirement Age is very similar to Voluntary Retirement, they are not the same. There are different service requirements to qualify for this help. In addition, it can start earlier than Voluntary Retirement.
In any case, not all FERS workers can apply for this type of it, so we must check the requirements beforehand.
In order to access the Disability Retirement announced by FERS, it is necessary to meet certain medical requirements. So we can say that it is a very restrictive type of retirement that is not suitable for all United States citizens.
As with the Early Retirement Age, the Disability Retirement has a different annuity computation with respect to the Voluntary Retirement.
Former federal workers may apply to FERS for the deferred retirement annuity when they reach age 62 or minimum retirement age. The final amount will depend on several factors that can be consulted through the FERS website.
Within the FERS stop working plans, the Phased Retirement is very common. This type of retirement makes the worker work part-time for a limited period of time. This will cause the payments to be split between the retirement checks and the paycheck itself.
The best thing about this type is that at the end the worker gets extra credits if he/she is thinking about Full Retirement Age. So it is a great advantage over the rest of retirements.
Who can receive the FERS retirement benefit?
Any FERS worker who is over 62 years of age and has worked 5 years of service will receive their benefit directly. This benefit is annual, unlike Social Security checks, so we must have more control of the money we earn in order to manage it perfectly.
In any case, the final amount depends on several elements and not only on having worked 5 years. Moreover, with a single 5-year job we will not get a big check from FERS during our retirement, something we have to take into account when we retire.