When we look at determining what level of income is needed to retire comfortably, we tend to think there is no possible way we are going to be able to hit our marks. Most of the federal employees we sit with are looking at anywhere between a 50 to 80 percent reduction in their gross income. We take a different approach to this. Many of the deductions that you currently have deducted from your paycheck will not continue in retirement. As an example, when you retire, you will no longer be contributing to your federal pension, you will be instead receiving a federal pension. Another example would be your Thrift Savings Plan, you will no longer be contributing to your Thrift Savings Plan, but instead taking money from it. These are important considerations to take when looking at the bottom line for income in retirement. If we compare a federal employee’s gross income number to their gross income number in retirement, there will most likely be no comparison. However, if we compare your current net income to your net income in retirement, it’s likely that the numbers will be much closer. If your numbers are still way off, then we can look into a way to coordinate the different areas of your benefits in order to help bridge the gap. For example, looking for ways to save more money for retirement purposes, such as saving it in a different tax status to free up tax-free income, finding an alternative to your life insurance or perhaps changing how your Thrift Savings Plan is invested. The bottom line: we will help you with the number that is most important to you – the one deposited in the bank each month.
Receive Your Federal Benefit Workbook
Please fill out the form to the right with your information to receive your personalized federal benefit workbook. This workbook will help you understand when you are eligible to retire, compute your monthly pension, show you how Social Security works and explain the options available to you with FEGLI and TSP.
By providing your information, a licensed insurance representative may contact you.