The federal government is the country’s largest public employer with over 9 million employees.
Our insurance practice specializes in helping federal employees avoid common but often crucial mistakes BEFORE they retire.
Here are Four Things you Should NOT do when it comes to planning your retirement:
The Office of Personnel Management or your agency’s HR department doesn’t and shouldn’t give retirement advice. Their offices are more specifically set up to provide education and information about your federal benefits so that you can make informed decisions.
Regardless of what you do, Uncle Sam always gets his cut. However, tax planning for and during retirement is another commonly overlooked area in developing a financial plan. Many federal employees assume that taxes will lower in retirement and won’t affect their retirement savings in tax-deferred accounts like the TSP or IRAs.
One of the most important things that you should do to avoid risking your retirement benefits is knowing whether you are even eligible to retire. The federal government sets Minimum Retirement Age Requirements (MRA) and a Creditable Years of Service requirement. Changes in your work schedule or extended leave can impact your retirement eligibility and computation. More likely than not, your retirement computation date is often not calculated until you file your retirement application.
It takes around 60 days to process applications for common cases. Applications can be further delayed if there is missing or incorrect information. Because the FERS system is three tiered (government pension, Social Security, and TSP), the OPM may have to contact other departments. If your application is complete and no additional information is needed, benefits can start 30 days after your application is approved.
Retirement among Federal employees reflects little confidence with only 41% of respondents agreeing that they had enough money to take care of basic expenses in retirement.
Federal employees deserve to work with caring financial professionals who can help them coordinate their benefits from the start of their career and onto retirement. Not all professionals have the know-how of assisting federal employees with their benefits.
We have the experience and expertise to guide federal employees into making the correct decisions in regards to their employment benefits.
Click on the button below to watch a special webinar designed for federal employees.
