Originally Posted by
libertyrisk
Looking for input on taking early retirement vs staying for 20…
I’m a “terminal” O-4, even if I go to 20 years (had some enlisted time). I meet all of the requirements to apply for early retirement during FY 14. I could retire next summer at 19 years. I have a little over 2300 hours total time/~2100 PIC, I’m in a non-deploying flying gig for the next two years and anticipate taking the ATP written in the next month or so. I will have around 50 days of leave saved by next summer & minimal debt (my house that I currently live in & a car payment that'll be paid off next year).
Somebody tighten me up on my calculations but the way I read the message, if I left at 19 years, I would receive 46.5% of my “high three”. If that is the case, I would be leaving around 3k a year on the table if I left at 19 years. Is that 3k a year over a lifetime worth leaving on the table in order to try to get on with the airlines a year sooner vice a year later? I’ve been keenly following these forums & the airlines over the last few years and it seems next year would be the optimal timing (if there ever is an “optimal time” with the airlines).
If I apply & get approved, there is no turning back so the risk would be not getting hired and having to retire a year early. Anybody know how long the approval for early retirement takes? I'm wondering if I should start applying to the airlines with a start date of next summer & if I get hired, drop my early retirement papers? Does that pass the "sniff test"? Drawbacks?
TERA MESSAGE
“THE BASIC TERA RETAINER PAY ENTITLEMENT PER REFERENCE (G) IS COMPUTED AT THE NORMAL PAY MULTIPLIER OF 2.5 PERCENT FOR EACH YEAR OF CREDITABLE ACTIVE SERVICE AND REDUCED BY 1 PERCENT FOR EACH YEAR LESS THAN 20.”
Appreciate any opinions & advice!
Quick question for you. If you leave early what kind of TriCare Benefits do you have? Do you get to keep TriCare Standard until age 65 and then have TriCare For Life? Not a huge factor in deciding to leave or stay, but family medical coverage is a factor to throw in to the equation. TriCare Standard picked up all of the copays and deductibles when I was with FedEx. Plus, if you do get furloughed (heaven forbid), TriCare is a lot cheaper option than COBRA with your employer. Also, there are not a lot of airlines today that provide retiree health care that is really affordable.
Good luck with your decision and thanks for your years of service.