Anonymous asked in Business & FinanceTaxesUnited States · 2 years ago

70k job and spend money or 55k job and save money? Read details?

One job is Federal other is state. Federal 20 year and state is 25 year retirement. I'm just 22 so I'm well under the age to retire anyways. Federal has awesome benefits and I'm sure state is not far behind. Federal sounds like the way to go until I realize what is most important to me. State I get my own vehicle, meal card and it involves being outside. Federal I had to drive hour each way, buy my food and stay indoors all day. Both start out roughly same pay but 10 years down the road Federal is paying 70k and state 55k. I was think over a years time I would actually make more state. No wear on my personal vehicle so I can probably get extra 5 years out of it. Don't have to worry about gas and meals. And I'll be outdoors. What's everyone's opinion?

4 Answers

  • 2 years ago
    Favorite Answer

    No federal employment offers 20-year retirement unless you are 60 or older, unless you're talking about the military. And if you are, you need to say so. The rules are VERY different from federal civilian retirement.

    I am retired federal civil service (CSRS). To receive unreduced retirement annuity, at least 30 years of service (including any creditable military service) at age 55. With less than 30 years, minimum age 60.

    For the replacement system FERS, instituted in the early '80s (CSRS could opt to switch), minimum retirement age is 57 (for those born 1970 or later) and age plus years of service must add up to at least 80.

    At age 22, you will be FERS and you will have to work at least 35 years to get a federal annuity under the present system.

    Unless you are military. But again, that is a totally different system. You can retire in your 40s and go do something else, but the trade-off is that, according to my research, military employment does not offer a retirement plan that you can contribute to and receive matching funds. In FERS, your first 6% is matched and you may contribute much more than 6%. Over time, that free money will add up to a lot.

  • 2 years ago

    Keep in mind that that state-provided vehicle is taxable income to you at the market lease rate for the same year, make, and model if personal use is allowed.

    State retirement funds are not cast in stone. Look at what happened in NJ. Anyone currently employed and all new hires are getting the short end of the stick. Even current retirees are not protected by law, so if things get tighter, they will be left to swing in the wind as well.

    The last time that the federal retirement system was changed, current employees (other than Congress) were allowed to choose between the old and the new system. State plans offer no such protection.

  • 2 years ago

    What jobs are these?

  • NA
    Lv 7
    2 years ago

    FWIW, the federal government is unlikely to suddenly cut benefits as state might have to if they didn't put enough money aside to pay benefits.

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