As a federal employee, your pensions are amazing! You already know this, but does your strategy for retirement maximize your pension?
Welcome to Financial Planning 4 Feds. We are dedicated to educating federal employees on how to maximize value from their government benefits by developing and executing a financial plan.
In this episode we will go over:
– How retiring early could affect your pension
– Provide a quick overview of CSRS and FERS
– Show a few bonuses most pensions don’t offer
– Reveal why many financial advisors don’t like pensions
0:00 Intro
0:50 Your Pension Victory
4:40 Retiring Early
11:13 Overview of CSRS & FERS
14:07 Protecting Your Spouse
14:47 VCP – Voluntary Contribution Plan
16:56 SRS – Special Retirement Supplement
20:15 – Why Financial Advisors Don’t Like Pensions
Download the eBook:
Federal employees and their spouses are invited to complimentary educational workshops covering their federal benefits. For details, visit:
Federal Benefit Resources:
Would you like to know more?
…(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
The Power of Your CSRS and FERS Federal Pensions
For many federal employees, the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS) is a crucial part of their financial future. These pensions provide a steady income stream for retired federal workers, ensuring financial security during their golden years. Understanding the power and benefits of these federal pension plans is essential for every government employee.
One of the most significant advantages of CSRS and FERS pensions is the guaranteed income they provide. Once eligible for retirement, federal employees can rely on a fixed monthly payment, which will continue for the rest of their lives. This guarantees a stable income source, even during economic downturns or periods of uncertainty. Many private sector workers do not have such a safety net, making these pensions a valuable perk for federal employees.
Another advantage of CSRS and FERS pensions is their inflation protection feature. Both plans offer cost-of-living adjustments (COLAs) that help retirees maintain their purchasing power over time. As the cost of goods and services increases due to inflation, pensioners receive periodic adjustments to their benefits. These COLAs ensure that the real value of the pension does not erode over time, providing retirees with a steady and reliable income even as prices rise.
Moreover, CSRS and FERS pensions often include health insurance benefits. Retirees who meet certain criteria can continue their coverage under the Federal Employees Health Benefits (FEHB) program. This means that federal pensioners can retain access to quality healthcare services even after leaving active service. The FEHB program offers a wide range of health insurance options, allowing retirees to choose the plan that best suits their needs and budget.
CSRS and FERS pensions can also provide survivor benefits for spouses or dependent children. In the event of the retiree’s death, a surviving spouse may continue to receive a portion of the pension. This ensures financial security for loved ones and can be particularly valuable in situations where the surviving spouse is not entitled to their own public retirement benefits.
Furthermore, federal pensions offer various options for retirement planning. For example, federal employees can choose to make voluntary contributions to the Thrift Savings Plan (TSP), a retirement savings and investment program similar to a 401(k) in the private sector. By contributing to the TSP, employees can accumulate additional savings to supplement their pensions during retirement.
Overall, the power of CSRS and FERS federal pensions lies in their ability to provide federal employees with a stable and predictable income stream throughout retirement. These pensions offer inflation protection, health insurance benefits, survivor benefits, and retirement planning options. By taking advantage of these benefits, federal employees can ensure financial security and a comfortable lifestyle in their retirement years.
It’s important for federal workers to understand their pension plan’s eligibility requirements, contribution rates, and other factors that may affect their pensions. Consulting with a financial advisor or attending retirement planning workshops offered by federal agencies can help employees make informed decisions regarding their retirement benefits.
In conclusion, CSRS and FERS federal pensions are a valuable asset for any federal employee. These pensions provide a guaranteed income source, inflation protection, health insurance benefits, survivor benefits, and retirement planning options. By leveraging the power of their pensions, federal workers can achieve financial security and enjoy a comfortable retirement.
Why didn't the percentage rate increase to 3.1% for all employees in 2013? Why only new hires?
Good content, good info
Thanks for the information.
divide your pension by.04 that's what an investment balance you would need to generate the value of your pension
I would love to get to 62 but the VA is going to fire unvaxxed staff and my neck is on the chopping block. But even if it wasn’t I am so sick of the dangerous drive I have to make just to get to work with 13 year old kids stealing cars and driving like maniacs and no cops anywhere to pull them over ….oh and the shoot outs I have missed by 20 minutes twice in the past year on the highway that I just want out. I will adjust expenses to allow for that. I would rather eat beans than get shot on the highway or have a 13 year old driving up the exit ramp that I am trying to exit on at 80 miles an hour which has happened in my area. There are certain situations that are NOT worth money. I love my job and am sad to leave it but the risk outweighs the gain at this point.
Hi I'm ressel ontong from Philippines. I have a problem sir because my father was work American employee. 1964-1974 he work for 10yrs. And we get letter from Washington dc may 04 2004. And he was covered also civil service retirement. But we hold this card almost 17 years ago when we get this card. Sir if possible still we get the retirement of my father. And he was pass away already. Thank you.
This is great Ed!! I love your videos!!
I am planning on retiring next year at 59. I plan on delaying Social Security until 67 which means at 62, when my Supplement goes away, I will be taking a larger % from my TSP. However, at 67 my wife and I will claim Social Security and I hopefully won’t have to touch my TSP until Required Minimum Distributions at 72. Also, I’ll have enough cash that I may not even touch my TSP my first 18 months into retirement. Fingers crossed. You know the old saying, “We plan, God laughs.” Thanks again.
I always learn from your videos. Thank you.