Let’s dive straight into how the FERS updates in 2024 could recalibrate your journey to retirement. With a COLA increase of 5.2% for those still working and a 2.2% adjustment for retirees, the landscape is changing. But is it enough? You don’t need to work longer, you just need a better plan. Schedule a consultation with Charles to tailor a plan that suits your unique financial goals:
Consider the spike in grocery prices – soaring to double digits in many areas. It’s a reminder that staying informed is not just beneficial; it’s essential.
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Schedule a consultation with Charles to tailor a plan that suits your unique financial goals. …(read more)
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In April 2024, Federal Employees Retirement System (FERS) participants can expect several updates that may impact their retirement benefits. These updates aim to provide more transparency and better support for federal employees as they plan for their retirement.
One of the key updates coming in April 2024 is the adjustment to the FERS Basic Benefit formula. The Office of Personnel Management (OPM) has announced that they will be changing the formula to better reflect the cost of living adjustments and changes in the economy. This adjustment is aimed at ensuring that FERS participants receive a fair and accurate calculation of their basic retirement benefit.
Additionally, FERS participants can expect improvements to the online tools and resources available to them. The OPM is updating their website to provide easier access to retirement planning information, calculators, and other resources that can help federal employees make informed decisions about their retirement options. These updates are meant to make it simpler for participants to understand their benefits and plan for their future.
Another update that FERS participants can look forward to in April 2024 is an increase in the contributions to the Thrift Savings Plan (TSP). The TSP is a retirement savings and investment plan for federal employees, and the contribution limits are set to increase in 2024. This change will allow participants to save more for retirement and take advantage of the tax benefits offered by the TSP.
Overall, the updates coming to FERS in April 2024 are aimed at improving the retirement planning experience for federal employees. By making adjustments to the Basic Benefit formula, providing better online resources, and increasing contribution limits to the TSP, the OPM is working to ensure that FERS participants have the support and information they need to make the most of their retirement benefits. It is important for federal employees to stay informed about these updates and take advantage of the resources available to them to plan for a secure and comfortable retirement.
In my mind, the best day to retire is the end of the year if you want to collect the most annual leave possible and you want to pay the taxes on your leave in a year that you aren’t working. That assumes you want to wait that long.
The second best day to retire is at the end of a month in which the pay period ends at the end of the month so that you can get an extra 8 hours of leave. This is what I did. The month after I turned 62 had a pay period end at the end of the month. And since I only had to work one extra month, I thought it was worth it. But don’t do that if it’s going to force you to work much longer than you want.
The third best day to retire is at the end of any of the other months.
So it just depends because, quite frankly, if I was going to have to wait 3 more months to retire for the second option, wouldn’t have done it. I was ready to go.