• Money
    • Budget
    • Shop
    • Travel
    • Stories
  • Career
    • Advice
    • Entrepreneurship
    • Freelance
    • Small Business
  • Investing
    • General
    • IRA + 401K
    • Stocks + Bonds
    • Retirement Planning
    • Estate
  • The Basics
    • Student Loans
    • Credit Cards
    • Debt
    • Taxes
    • More
  1. Home
  2. Investing
  3. Retirement Planning
  4. How to Calculate Postal Retirement

How to Calculate Postal Retirement

By: Sam Grover
  • Share
  • Share on Facebook

The U.S. Postal Service is covered, as are all federal nonmilitary agencies, under the Federal Employment Retirement System (FERS), which pays all of its employees a pension in accordance with how much they were paid during their career, what kind of work they did, and how long they worked for the federal government.

...
U.S. Postal Service employees have retirement payments available to them.

FERS does not pay enough of a pension to equal a postal employee's working income. This means employees need to use their Social Security and private plans to amass a good retirement income for themselves.

Step

Calculate the average of your three highest-paid consecutive years. For most, this will be your last three years, but exceptions do exist, so look carefully through your salary information.

Step

Multiply your three-year average by 1 percent for each year of service if you are retiring after less than 20 years. So, if you worked for 10 years and your three-year high average was $30,000 a year, then your FERS earnings will be 10 percent (1 percent x 10 years) of that average--$3,000 a year.

Video of the Day

Step

Multiply your three-year average by 1.1 percent for each year of service if you worked for 20 years or more and are more than 62 years old. So, if you are 64 years old and worked for 20 years with a three-year high average of $30,000 a year, then your annual pension payment will be 22 percent of $30,000 (20 years x 1.1 percent). This is $6,600 a year.

Show Comments

Related Articles

How to Calculate Federal Retirement

How to Calculate Federal Retirement

Investing
Retirement Planning
By: Sam Grover
How Much Do Postal Workers Get Paid When They Retire?

How Much Do Postal Workers Get Paid When They Retire?

Investing
Retirement Planning
By: Greg Brian

PARTNER CONTENT

7 Habits of Highly (Financially) Effective People

7 Habits of Highly (Financially) Effective People

How to Calculate NHS Pension

How to Calculate NHS Pension

Investing
Retirement Planning
By: Matt McGew
Can I Collect Social Security Disability and a Pension at the Same Time?

Can I Collect Social Security Disability and a Pension at the Same Time?

Money
Budget
By: Amy Handlin
How to Calculate Pension Benefits

How to Calculate Pension Benefits

Investing
Retirement Planning
By: Drew Nelson

Get Weekly Savings& Finance Tips.

  • Money
  • Career
  • Investing
  • The Basics
  • About
  • Contact Us
  • Terms
  • Privacy Policy
  • Copyright Policy
© 2019 Leaf Group Ltd. Leaf Group Media

Get Weekly Savings
& Finance Tips.

Money Made Easier.

Please enter a valid email.