What Is DROP? How the Deferred Retirement Option Program Really Works

In this episode of The WealthWise Show, we break down one of the most misunderstood retirement benefits available to eligible employees: DROP (Deferred Retirement Option Program).

I explain, in plain language, what DROP actually is, how it works, and why the decisions you make during your DROP period can have a lasting impact on your retirement. From how your pension is calculated to what happens to your DROP balance, we walk through the key details many people overlook.

More importantly, we talk about strategies to help maximize your DROP—not just during the DROP years, but when you exit and transition into retirement. This includes how DROP fits into your overall retirement plan, common mistakes to avoid, and why having a coordinated investment, tax, and income strategy matters.

Whether you’re thinking about entering DROP, already in it, or approaching your exit date, this episode will help you better understand your options and make more informed decisions about your future.

For educational purposes only. This podcast does not constitute financial or investment advice.