TSP Investment Strategy for Retirement
Knowing What Your Pension Will Actually Be
Maximizing Your FERS Supplement
When to Start Social Security
How Your FEHB Changes in Retirement
Maximizing FEGLI
How to Not Lose Your Dental/Vision in Retirement
Do You Need Long Term Care Insurance?
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FERS Retirement Benefits 2023: What Federal Employees Need to Know
As a federal employee, it’s important to understand the benefits that will be available to you upon retirement. The Federal Employees Retirement System (FERS) provides a range of benefits to eligible federal employees, including a pension, Social Security, and the Thrift Savings Plan (TSP). With the new year approaching, it’s a good time to review the key aspects of FERS retirement benefits for 2023.
Pension Benefits: For federal employees who have completed at least five years of service, the FERS pension provides a guaranteed source of income in retirement. The amount of the pension is determined by a formula that takes into account the employee’s length of service and highest average salary. In 2023, the FERS pension is expected to continue providing a reliable source of income for eligible retirees.
Social Security: In addition to the FERS pension, federal employees are also eligible to receive Social Security benefits. These benefits are based on the employee’s earnings history and are adjusted annually for inflation. For 2023, the cost-of-living adjustment (COLA) for Social Security is expected to be around 2.8%, providing retirees with a small increase in their benefits.
Thrift Savings Plan (TSP): The TSP is a retirement savings plan for federal employees, featuring tax-deferred contributions and a range of investment options. In 2023, federal employees will have the opportunity to contribute up to $19,500 to their TSP accounts, with an additional catch-up contribution of $6,500 for employees aged 50 and over. The TSP remains a valuable tool for federal employees to save for retirement and build a nest egg for the future.
Health Benefits: Retiring federal employees may also be eligible for continued health insurance coverage through the Federal Employees Health Benefits (FEHB) program. In 2023, retirees will have the opportunity to choose from a range of health plans, including both fee-for-service and high-deductible options. It’s important for federal employees to carefully consider their health insurance options as they approach retirement, ensuring that they have the coverage they need for their golden years.
Overall, FERS retirement benefits continue to offer valuable support to federal employees as they transition into retirement. With the new year approaching, it’s a good time for federal employees to review their retirement plans and make any necessary adjustments. By understanding the key aspects of FERS retirement benefits for 2023, federal employees can better prepare for a financially secure future in retirement.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I strongly disagree with the idea if waiting to get the Long term care insurance (LTC). The cost of the premium is based on your age when you sign up and if you sign up on your first available opportunity, a physical exam or medical review is not normally required (unless this has changed over the years). LTC takes care of things that medical/health insurance doesn't cover, like nursing care in your home or or a facility. The things or care a person needs after they've been released from a hospital or doctor's care, and that medicare/Medicaid don't cover or don't cover sufficiently, basically. The cost of this care can easily run into the tens or hundreds of thousands of dollars very quickly. My husband wasn't going to get it when he got hired as a fed after retirement from the military but I insisted that he did. Years later when he needed 24/7 care for ALS that wasn't completely covered by the VA, his LTC paid for in-home caregivers to fill the gaps. It was a godsend!
GET TO THE POINT!!!!
This video doesn’t give any actual info. A lot of fluff
That’s wrong, my opinion, saying 40% could be taken out of your pension. Salary : My SSA deduction is nearly $700/month, $1500/ month TSP contribution, State tax $400/month, Medicare tax $150. All things that are gone when job stops. So go by gross pension income and estimate fed tax and any kind of insurance, health, dental, long term care…..I think that’s it unless your State taxes the pension.
Hi, thank you for your very useful information. I always watch your channel. I was wondering if you could post a more detailed video regarding change of benefits in the case of disability. I saw that you have one video on disability and the pension plan but I was wondering if you could go into a bit more detail about possibly keeping some of your other benefits, such as contribution/ match for the TSP, health insurance and mandatory age for your retirement benefits to kick in (62 vs 65?).
Thanks for all you do.
Dallen, I enjoy learning from you and have been a viewer for a long time. I share your videos with other Feds to spread the gospel to those interested in getting the most out of their benefits. Usually this is as a result of trying to answer a specific topic. When that happens, it often takes a while of searching through a video to locate the relevant information. It would be extremely helpful if your videos were organized into titled sections that can be used for easy sharing with others. Is there any way you could include this going forward?
It would be nice to see a comparison between tsp, Fidelity or Charles S. I hear the fee ratio may be lower in CS when you compare similar funds to the tsp.
He got a giant microphone, but now we can barely hear him, brilliant.
Why is the differential not included with your pension calculation when you work as a permanent Night Shift VA nurse?
Money is an issue that every one has for a better and luxurious life, irrespective of the challenges we all face,it would be nice you setup a portfolio of yours rather than waiting upon the goverment for assitance, was hard for me until I started investing in Bitcoin trading and am now earning $56,435 per week with an initial capital of $13,000, since retirement, all thanks to agent Max & his team, its months now & My family are benefiting from it, some might venture into stock to clear their mortgage,I believe whichever is best for your financial stability.
My fellow FERS employees if you get offered a Vera VSIP take it. Retire early, if 55 look up 55 rule, if younger still retire with no cap on earnings until your MRA. Social security supplement is huge. Retire early and enjoy your life. Stop working a shitty job until age 62 or older get out and enjoy your life !!!
It looks like you have a flu or cold. Take care mi hermano.
Regarding FEGLI best advice I ever got at a retirement seminar is drop Part B (multiples of salary) and Part C by age 50 and get a Term Life Policy BUT keep Basic and maybe Part A. I got a Term policy (1 million) for way less than I was paying FEGLI, but kept Basic only. When I retired I took the 75% reduction option which means free FEGLI after age 65 (policy will reduce in value until it is 25% of your last salary while working). FEGLI is still a great option (even the expensive Part B) for people who cannot get a life insurance policy anywhere else because of health reasons. Also make no changes to FEGLI until you have something else in place; you can delete coverages but not add until an open season, which for FEGLI is rare, maybe once every ten years and not announced until last minute.