Can I Start My Railroad Retirement at 60 without 30 Years?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag.

I'm John McNamara of Highball Advisors, and today’s question comes from Jeff B. He asks:

“I hired on at age 33 and really don’t want to work past 60. Can I retire at 60? What would the reduction look like, and what would happen to my spousal annuity?”

Great question, Jeff!

So here’s the deal: if you retire at 60 after hiring on at 33, you’d have 27 years of service. That means you wouldn’t qualify for an unreduced Age & Service Annuity, since you’d be short of the 30 years required.

The earliest you could start collecting your annuity would be at age 62, and that would come with about a 30% reduction due to retiring early. The spousal annuity would also be reduced if it starts at 62.

Now, if you decide to work just three more years and retire at 63, you’d reach that 30-year mark, and you could avoid the age reduction altogether. Plus, if your spouse is younger, she could start collecting at 60 under the 60/30 rule.

So there’s a lot to think about here — different strategies depending on your goals and your spouse’s age.

For a deeper dive into these options, check out my video:

“Discover How Railroad Retirement Age Reductions Impact Railroaders with Less Than 30 Years.”

It covers a lot of the questions you’re thinking about.

Alright, railroaders, I hope this was helpful. Keep sending in your questions — I might feature yours in an upcoming video.

Until next time, stay safe, stay on track, and take care.

So long, everybody!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.