How Will Leaving the Railroad at 50 Impact My Railroad Retirement?

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 Goal Achiever 443. He asks, "I'm 50 with 19 and a half years of railroad service. What if I only do 20 years of railroad service and then resign to work somewhere else? What's going to happen to my railroad retirement annuity?"

Alright, so nothing will happen to your railroad retirement annuity. You will be able to access it at 62 with age reductions. If you wait until the full retirement age of 67, there will be no age reductions. However, if you work somewhere else in a W2 position and not as self-employed, you will lose your current connection, which impacts your survivor annuity benefits.

Considering your situation, being 50 with 19 and a half years of service, just 10 more years would bring you to 60 and a half, allowing you to retire at your full retirement age with no reductions. That means you could receive full benefits at 60 and a half instead of waiting until 67.

Check out my video, "Things to Consider When Leaving the Railroad," which covers many of the issues you should think about. I hope you found this helpful. Feel free to send in your questions, and I'll make a video on them. 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.