Nova Wealth
Helping you create predictable, sustainable, income Please see my website www.retirenova.com for additional information and disclosures
How Much Do You REALLY Need to Retire?
Many retirement plans fail because of inaccurate expense planning.
If you are approaching retirement and unsure if you have enough, don't worry, we break down how to find your retirement number.
1. Identify the retirement expenses that catch us off guard such as home repairs, a new car, healthcare, and inflation.
2. How to calculate your true monthly retirement expenses.
• Subtract expenses that drop off in retirement (savings contributions, work-related costs)
• Add new ones (travel, healthcare, leisure)
• Include the big expenses that come once every few years to annual budgets
• Once we arrive at a realistic monthly retirement expense target, we review the post retirement income projections to figure out what needs adjustment.
3. We identify what retirement plan adjustments you can make if your number doesn't quite work yet.
If you're thinking of retiring early, do a 3 month dry run, live exactly as you think you would in retirement to see if the actual expenses match the plan.
What to do if you've already retired, and your Retirement Income and Expense Numbers Don't Line Up?
1. Spend less, to contribute more now to your investments so that you have more later in retirement. How to find retirement expenses where you can save the most.
• Start with the recurring expenses that are impacted by inflation. Saving 30% on your grocery, home, or personal care bills adds up quickly.
• Next is the "$10" bucket. Where do you spend an extra $10 daily that doesn't need to be spent or could be cut in half?
• Next, the monthly subscriptions. We've found hundreds of dollars per month in subscriptions that people don't even remember signing up for.
• Next is Credit card debt. Paying off a $10,000 credit card balance saves $3,600 per year in interest expenses.
• Next is the big and obvious ones like dining out and vacations. Remember this isn't about stopping, it's about hitting the pause button for a few years to increase your savings so the return you earn on the savings can help you fully enjoy the years ahead.
2. Another option is to work a little longer or pick up part time work. Enough to add to your savings so that in the years to come the nest egg is bigger.
Our most fulfilling moments are those real client stories with people who retired years earlier than expected and others who we helped navigate how to rethink their spending habits.
Let us know if you'd like more information on any of the topics covered today.
1. How to build a retirement budget
2. Retirement income strategies
3. Healthcare costs in retirement
4. Long-term care planning
5. Social Security and tax planning considerations
6. How to know if you can retire now
Whether you're 10 years out or just around the corner from retirement, we are here to help you take the guesswork out of retirement income and expense planning, building a plan that actually fits your life. https://calendly.com/d/cvcv-myb-53g/nova-wealth-intro-call
04/21/2026
https://www.youtube.com/watch?v=e3NFEk9bGm8
What to do as a Federal Employee, likely to be forced into early retirement.
Know the single most important distinction: immediate retirement versus deferred retirement - and why this distinction alone could add - or cost - up to $300,000 to your retirement.
Most federal employees have no idea whether they qualify for immediate retirement or would face deferred retirement. This distinction is worth more than most people's entire Thrift Savings Plan balance.
Let me walk you through exactly what this means with real numbers.
IMMEDIATE RETIREMENT and the Three Ways to Qualify:
Option 1: Your Minimum Retirement Age with 30 years of creditable service.
Option 2: Age 60 with at least 20 years of creditable service.
Option 3: Age 62 with at least 5 years of creditable service.
And for Option 1 Your Minimum Retirement Age depends on your birth year:
• Born 1948 or earlier: it’s 55
• Born 1953 through 1964: it’s 56
• Born 1970 or later: it’s 57
If you meet ANY of these when you separate from service, you qualify for immediate retirement.
Here's what immediate retirement gives you:
1. Your Federal Employees Retirement System pension starts within 30 to 60 days of separation.
2. You get Federal Employees Health Benefits continuation into retirement with the government paying 72% to 75% of your premiums.
And if you're under age 62, you get the Federal Employees Retirement System supplement - which I'll explain in detail later, but think of it as a bridge payment until you're eligible for Social Security.
DEFERRED RETIREMENT and Why this is often The Expensive Alternative:
If you have 5 or more years of service but you DON'T meet any of the age and years of service criteria, you're stuck with what's called deferred retirement.
What does that mean?
1. Your pension sits frozen until age 62.
2. You get no payments.
3. No health insurance from the government.
4. No supplement.
5. Nothing until you turn 62.
Let me show you what this actually costs with real numbers.
This is Sarah's $380,000 story.
Meet Sarah.
She's 55 with 22 years of creditable service.
Her highest 3 salary is $85,000.
Her agency is facing a Reduction in Force.
Her question: Does she qualify for immediate retirement - right now?
Let's check the age x years of service criteria:
• Minimum Retirement Age with 30 years? No - she's 55 but only has 22 years
• Age 60 with 20 years? No - she's only 55
• Age 62 with 5 years? No - she's 55
Sarah does NOT qualify for immediate retirement.
If she gets hit with Reduction in Force today, she faces deferred retirement.
These are the real costs of deferred retirement.
• Lost Pension Income - She’s 7 years from getting her full pension @ 62 - that’s $18,700 per year lost ($130,900)
• Lost Supplement - 7 years of the Social Security Bridge, lost @ $11,880 per year - that’s almost $84,000 she will never receive
• Health insurance - Federal Employees Health Benefits family coverage on the open market runs about $1,400 per month if she has to buy it herself. That’s $88,000 she will have to pay out of pocket over the next 7 years.
Total Cost of a Deferred Retirement: $302,160
And here's what makes this even worse:
When Sarah finally claims her pension at 62, she gets that same $18,700 per year. The same amount she would have gotten with immediate retirement.
The pension doesn't grow during those 7 years. It doesn't accumulate. It just sits there frozen while she loses $302,160 in benefits and out-of-pocket costs.
Why This Matters for Your Decision:
If your agency offers you Voluntary Early Retirement Authority and you decline it, and then six months later you get hit with Reduction in Force and you DON'T qualify for immediate retirement, you just lost over $300,000 and there’s no going back.
This is why understanding your immediate retirement eligibility is THE thing you need to know.
What to do yesterday, to know if you qualify for immediate retirement benefits.
1. Pause this video. Call your HR office tomorrow morning. Say exactly this:
"I need to verify my retirement eligibility. Can you confirm whether I currently qualify for immediate retirement, or if I would face deferred retirement if I separated today? I need my exact Service Computation Date for retirement and confirmation of my creditable years of service."
2. Get that information in writing. Email is fine - but you need documentation. Written - verifiable data - is the foundation of every decision you're going to make.. Now it's time to talk about how to actually decide whether to take an early retirement offer.
Nova Wealth 20 likes, 7 comments. "What to do as a Federal Employee, likely to be forced into early retirement."
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