As a federal employee, your FERS basic benefit will likely be a major source of income in retirement. But it also likely won’t cover all your needs. That’s where the Thrift Savings Plan comes in. Like a private company 401(k) plan, the TSP allows you to save a portion of your paycheck in a tax-deferred investment account.
Upon retirement, the Federal Employees Retirement System (FERS) will pay federal workers a monthly benefit based on their years of service worked under FERS, average high 3-year salary and age. This FERS basic benefit is often known as the monthly annuity. It is a major source of retirement income for federal workers. Knowing how it is calculated can help you decide when it’s the right time to retire.
From postal workers to VA doctors, we’ve had the pleasure of helping many federal government employees reach retirement. The first thing most of those folks want to know is at what age can they retire. So, what is the federal retirement age? Is it the conventional age of 65?
The Thrift Savings Plan, or “TSP,” can often seem like an underrated part of the FERS program. Compared to the FERS pension, it may feel less valuable. In fact, your TSP can be the difference in achieving the retirement you’ve always wanted.
As a government employee, the Federal Employees Retirement System (FERS) Basic Benefit is a benefit available to you to help replace your current income and live a comfortable retirement. It is commonly referred to as the FERS pension. The size of your benefit can vary greatly as it depends on personal decisions you make during your working years.
Changes are being made to the Thrift Savings Plan account. In an effort to improve the choice of investments available to investors within the TSP (currently restricted to five funds plus the L-series target date funds), the Federal Retirement Thrift Investment Board (FRTIB) is making a “mutual fund window” available to plan participants beginning this upcoming summer.
There is no secret strategy to become rich. You don’t need to put all your money in a new tech stock or cryptocurrency. You don’t even need to earn a six-figure salary. Many government workers, civil servants and military service members (or retired military) just like you are proof of this.
The average age of workers taking voluntary, normal retirement under FERS (Federal Employees Retirement System) is 63. However, there are many federal employees who choose to retire earlier as soon as they gain access to their benefits.
How do you know when you’re ready to retire from the federal workforce? It’s not always an easy decision. Because it’s not only a matter of whether you want to retire but also can you retire yet.
Maxing out your Thrift Savings Plan account is not a necessity for federal workers to achieve a comfortable retirement. But there are many good reasons for making it one of your financial goals.
