Federal Employee Retirement Planning: Complete FERS Guide
Everything federal employees need to know to plan for retirement. FERS, TSP, Social Security, FEHB, and smart strategies.
Key Takeaways
- 1Federal retirement has three pillars: FERS, TSP, and Social Security
- 2Start planning 5-10 years before retirement
- 3Maximize TSP contributions, especially matching
- 4Understand your retirement eligibility options
- 5Ensure 5 continuous years of FEHB before retiring
- 6Coordinate Social Security claiming with FERS Supplement
- 7Consider TSP rollover strategies for more flexibility
The Three Pillars of Federal Retirement
FERS retirement income comes from three sources, each requiring different planning strategies.
| Pillar | What It Is | Key Actions |
|---|---|---|
| FERS Annuity | Defined benefit pension | Maximize high-3, service years |
| TSP | 401(k)-style savings | Contribute max, diversify |
| Social Security | Government program | Coordinate timing with FERS |
All Three Matter
Your FERS annuity alone replaces about 30-40% of salary. TSP and Social Security fill the gap. Plan for all three.
Federal Retirement Planning Timeline
Start planning years before your target retirement date.
- 1**10 years out**: Know your MRA and eligibility dates, maximize TSP
- 2**5 years out**: Confirm 5-year FEHB rule, check creditable service
- 3**3 years out**: Calculate high-3, consider career moves for salary bump
- 4**2 years out**: Request retirement estimate, review survivor elections
- 5**1 year out**: Attend retirement seminar, finalize timing
- 6**6 months out**: Submit retirement application, plan TSP withdrawals
- 7**Retirement**: Begin annuity, decide TSP strategy, coordinate SS
TSP Strategies for Federal Employees
The TSP is your most controllable retirement variable.
- **Contribute to match**: At minimum 5% to get full government match
- **Consider Roth TSP**: Tax-free withdrawals in retirement
- **2024 limit**: $23,000 + $7,500 catch-up if 50+
- **Lifecycle funds**: Good for hands-off investors
- **Manage allocation**: Adjust risk as retirement approaches
- **Avoid loans**: TSP loans reduce your retirement savings
Maximize the Match
The 5% government match is free money - an immediate 100% return on that portion. Always contribute at least 5%.
Exploring your retirement options?
Our 60-second quiz matches you with the right account type
When Should You Retire?
Retirement timing affects your annuity, supplement eligibility, and taxes.
- **End of pay period**: Annuity starts first day of next month
- **End of year**: Can use leave for payout, starts next year
- **December 31**: Popular - full year of leave payout + new year start
- **Age 62 with 20+**: Gets 1.1% multiplier vs 1%
- **MRA with 30**: Full annuity + FERS Supplement
- **Before SS age**: Supplement bridges gap to Social Security
Pre-Retirement Checklist
Complete these items before retiring.
- ☐ Confirm retirement eligibility and date
- ☐ Request official annuity estimate from HR/OPM
- ☐ Verify 5 continuous years of FEHB enrollment
- ☐ Review survivor benefit options
- ☐ Check creditable service (including military)
- ☐ Verify unused sick leave is documented
- ☐ Plan TSP withdrawal strategy
- ☐ Coordinate Social Security claiming age
- ☐ Attend pre-retirement seminar
- ☐ Submit SF-3107 (retirement application)
Building Beyond Federal Benefits
Your federal benefits provide a strong foundation, but additional savings increases flexibility and protection.
- TSP has low fees but only 5 fund choices
- Can roll TSP to IRA for more investment options
- FERS COLA is limited - doesn't fully protect against inflation
- Gold IRA provides inflation protection beyond FERS
- Diversify beyond the G Fund's low returns
- Augusta Precious Metals helps with TSP-to-Gold rollovers
Frequently Asked Questions
1When should I start planning for federal retirement?
Ideally 10 years before your target retirement date. At minimum, start serious planning 5 years out to ensure FEHB eligibility and maximize high-3.
2What is the most common federal retirement mistake?
Not contributing enough to TSP. Many federal employees rely too heavily on their FERS annuity and Social Security without building substantial TSP savings.
3Should I buy back military time?
Usually yes if you served. Military deposits increase your annuity calculation and are generally a good investment. Calculate the payback period to decide.
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