About Early Retirement Benefits at Age 50
Retiring with benefits by age 50 sounds good. Unfortunately, the instances under which you can qualify for early retirement benefits by that age are rare. It often requires unfortunate circumstances like the death of a spouse. Also, the per-payment benefits are typically less than you might receive at the standard retirement ages.
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Social Security
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A little-known fact about Social Security payments is that a portion of your payments goes to Social Security survivors insurance. To qualify for survivors benefits, you must have worked and contributed to Social Security for 10 years. Survivors benefits can be paid to a disabled widow or widower as young as 50. However, a survivor of any age can receive benefits if taking care of a deceased's child under age 16 or disabled. Survivors benefits can also go to unmarried children under 18 if attending high school; under certain conditions, benefits are also payable to stepchildren, grandchildren or adopted children. Disabled children also qualify if the disability occurred before age 22 and they remain disabled.
Federal Employees
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Government employees are sometimes offered early retirement pensions, or buyouts, when their agencies undergo restructuring or downsizing. To meet minimum requirements, an employee must be age 50 with at least 20 years federal service or any age with at least 25 years of federal service. While there are slightly different calculations involved in determining the amount of your retirement annuity, the payment is based on the average three high years of salary.
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Police and Fire
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Due to their work and the presence of strong unions, the majority of police and fire employee union contracts contain a clause called "20 and out." It means they qualify for significant portions of their retirement pensions after 20 years of service, regardless of age. Added years of service usually mean a higher pension. Most police and fire pensions top out at 70 percent of the highest three years of average pay, including overtime and also contain cost-of-living increases. This applies to municipal, state and federal police and fire workers.
Armed Services
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Military pay and overall retirement benefits are not stellar, but their personnel do receive some things others do not offer. One called reduced compensation for service offers military personnel a retirement pension with benefits as early as age 37 (assuming you enlisted at age 17) which also includes a cost-of-living increase. The pension formula is complex, but based on years of service and rank upon retirement.
Move to SD
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South Dakota offers a standard early retirement system. Even the regular retirement age of 55 is low by most standards, but South Dakota goes further. They offer a special standard early retirement package beginning at age 45, as long as you have worked for the government at least three years. If you choose the age 45 retirement pension, you receive full monthly lifetime benefits immediately upon retirement.
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