As federal employees enter retirement, they cross into foreign territory littered with risks. These risks often fall into four categories, longevity, spending shocks, inflation, and market risk. For most federal employees, saving for retirement was the easy part, and figuring out how to manage these risks when approaching or entering retirement will be much moreContinue reading “4 Risks Federal Employees Face In Retirement”
Tag Archives: FERS
Top 2022 Articles For Federal Employees
I think every federal employee can agree that 2022 was an eventful year. This past year was full of noteworthy events, from huge TSP changes and wild market ups and downs to the approval of the largest COLA in decades. As we reflect on the year, I’ve compiled the top five most-read articles of 2022.Continue reading “Top 2022 Articles For Federal Employees”
What Federal Employees Need To Know About Working In Retirement
Many federal employees plan to work at least part-time in retirement. Some make this decision for the extra income, a desire to stay active, maintain a sense of purpose, or some combination thereof. Whatever your reason might be, it’s essential that you’re aware of how working in retirement can affect your other income. While continuingContinue reading “What Federal Employees Need To Know About Working In Retirement”
3 Early Retirement Options For Federal Employees
For some federal employees working until they’re eligible for the traditional FERS, retirement just isn’t in the cards. And while retiring after 20 or 30 years of uninterrupted service is usually uncomplicated, there is often confusion about what early retirement options are available. So, this week, we will review three early retirement options: postponed, deferred,Continue reading “3 Early Retirement Options For Federal Employees”
The FERS Child Survivor Annuity Benefit
Many federal employees are aware of the survivor annuity benefit elected at retirement and understand that it allows them to leave a portion of their FERS pension to a beneficiary upon their death. But few are aware of the child survivor annuity benefit. Although both may sound similar, the survivor annuity elected at retirement andContinue reading “The FERS Child Survivor Annuity Benefit”
FERS Annual And Sick Leave At Retirement
As federal employees approach the end of their careers and start the retirement planning process, many wonder what will happen to their leave. Will they receive a lump sum payment or credit toward their FERS annuity? There can be a lot of confusion around the treatment of sick leave, especially since prior to the 2010Continue reading “FERS Annual And Sick Leave At Retirement”
Federal Pay Raises Vs. FERS COLAs
With the most significant FERS cost of living adjustment (COLA) in over a decade (4.9%) for FERS retirees and only a 2.7% pay raise for active federal employees set for January 2022, many feds are wondering why the large difference? This is a legitimate question, especially considering the recent jump in inflation. And the reasonContinue reading “Federal Pay Raises Vs. FERS COLAs”
What Federal Employees Should Do 1 Year Before Retirement
Although, as a federal employee, you should begin planning for retirement years before you hand in your application, the year before retirement is critical to set yourself up for the transition. This period is essential since you’ll have limited time to review your finances and make decisions that will affect the rest of your life.Continue reading “What Federal Employees Should Do 1 Year Before Retirement”
How Will Your Federal Retirement Benefits Be Taxed?
Many federal employees don’t realize the impact that taxes will have on their retirement income. But the truth is that if not factored into your retirement planning, taxes can destroy your financial plan. Even if retirement is many years away, understanding how your federal retirement income will be taxed will help you be proactive withContinue reading “How Will Your Federal Retirement Benefits Be Taxed?”
How Is Your FERS High-3 Calculated?
Most federal employees have heard the term “High-3,” and many understand that their pension will be a percentage of this amount. But few know how to compute their High-3 or what pay is actually included in it. However, since your High-3 is required to calculate your pension, it’s critical to understand in order to estimateContinue reading “How Is Your FERS High-3 Calculated?”