I got a job offer at GSA in Washington DC for their pathway program from GS9-GS12. I currently work in a private company and wanted to switch to federal government. The reason I wanted to switch is to get good person for my family because I'm still in the Reserve and would be able to buy time for my retirement. My wife doesn't why I'm leaving the private company. I bought my house in Iowa and I live my family. Just need advice. Thanks

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What is this “pension?” FERS? What you should do is calculate out your lifetime earnings, conservatively, working for the government.

Then calculate out your lifetime earnings in private industry.

Calculate what would happen if you saved 7% more out of your increased salary in private industry. That’s what they take out for FERS and give back to you at retirement. The government matches that and they invest the money. So it’s not wildly different that a 401k.

If you make 10, 20, 30… or even 100% more income in private industry, just save more. You could have a larger investment over time that will pay you more at retirement. ALSO, it will be a transferable asset at death, and not just be around for possibly one survivor. Like social security, pensions count on you dying as soon after retirement as possible.

When I looked at the long road of a government career, I didn’t like the lower pay to begin with, and as I mapped out the retirement piece, I realized if I just saved more, I would be in a much better financial position not just at retirement, but my whole life. I knew the government retirement was a scam when HR was enthusiastically telling me that I would get Social Security too.

Now I work in private industry, supporting the DoD, I make more than any person in government. I purchase the maximum IRS allowable $25,000 in company stock at a discounted rate - that’s my personal TSP. I max out my 401k ($20k) with another $9k in company matching - that’s my FERS. Because I put 10% of my income toward my 401k, after $20k, the rest goes in a post tax IRA. and I make a variety of other investments…. This will set me up for a much better financial position that FERS would even if I made it to SES.

Just a thought.

I’m also in the National Guard - been in for 18 years. So if I retire at E9 with 25 years in, I’ll be able to collect that around 57, and I will get a pretty damn good rating from the VA.

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Real talk the people who start in the government now pay ridiculously more to FERS than I do. I'm paying like 0.8% and newbies pay 4.4%. Crazy. I don't plan to rely on FERS for retirement. I'm going to get my TSP to $3M then call it a day. FERS will be my golf course fees.

Also work life balance is FTW. 40 hours and compensated at 80+. I enjoy it and then pay is good for me.

Are you drunk? Or just typing on mobile and not proofing?

likefunny

No

I was asleep while sending the text. I'm sorry abt that

I’m prior government. I think federal jobs are overrated, but you are in DC so upward movement I feel may be easier. I was essentially capped at GS-13 working in a non-DC office and couldn’t get to a 14 until someone retired or left.

So, does your wife live in Washington DC or Iowa? Where are you currently located?

My wife and my two kids lives in Iowa. I will be in Washington DC for work and I will be coming home to see them

So now how much money are you spending per year in plane tickets, fuel to and from the airport, parking, a new apartment or Air B & B.

This sounds like a terrible idea unless you want to bankrupt yourself or get a divorce or both.

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