Trade 20% of Your Pension for 10 More Years of Life?

May 19, 2025

We’ve been conditioned to believe that the goal is simple:

✔️ Stay until 62
✔️ Lock in the highest-possible pension
✔️ Retire safely with full benefits

But a quiet revolution is happening across the federal workforce.

🚨 The New Tradeoff Mindset

More FERS employees are walking away earlier—and they're okay with giving up 10, 15, even 20% of their projected pension.

Why?

Because they’re gaining something far more valuable:

🕰️ Time
❤️ Freedom
💡 Energy to live life on their terms

As one federal retiree put it:

“I gave up $500 a month for 120 more weekends with my grandkids. Easy decision.”

🧠 Let’s Break Down the Logic:

A federal employee retiring at 57 instead of 62 might lose:

  • ~20% of their lifetime FERS annuity

  • A higher high-3 average

  • More Social Security credits

But they gain:

  • Immediate access to their TSP at age 57 (penalty-free)

  • More years of health, travel, and purpose

  • The chance to pursue part-time or passion work

  • Psychological wealth—that feeling of living by choice, not inertia

🔍 Case Snapshot:

Lisa, a GS-13 with 27 years of service at age 57, could stay five more years for a $1,000/month pension boost.

Instead, she chose to retire now—with:

  • A smaller pension

  • A diversified TSP

  • A flexible consulting gig paying her more than the raise she gave up

  • More time with her aging parents and teenage son

Her words:

“They said I’d regret it. I haven’t regretted one single day.”

✋ Before You Lock in “Max Benefits,” Ask:

  • What will five more years cost you—in health, time, and missed moments?

  • How much income do you really need vs. how much you're chasing?

  • Could you design a retirement that starts sooner and still feels safe?

Your pension is part of the plan. But it shouldn’t become the plan.

Best,
Federal Wealth Retirement

P.S.