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Shows & Panels
How can you tell if a federal buyout is a good deal?
Friday - 4/6/2012, 5:13pm EDT
Only federal employees with at least 25 years of service (regardless of age), or those who are at least 50 years old with 20-25 years of service are eligible for early retirement. Those who qualify receive the same retirement benefits they would have if retiring normally.
Some agencies also offer buyouts, which are annuities of up to $25,000. That may sounds like a lot, but keep in mind the annuity is fully taxable.
"Most employees who get this offer, when they see the dollars and cents, what they're going to be getting, they say, 'I really cannot afford to retire,'" Zurndorfer said.
Listen to the full interview above for more tips on early retirement and buyouts.