By Kyle Plotkin
Investment Advisor Representative
[email protected]
As we celebrate Independence Day, it’s an appropriate time to recognize the men and women who have chosen careers in public service. That includes our military members, as well as the civilian federal employees who keep our government functioning every day. Whether they’re serving in uniform, processing veterans’ benefits, managing our national parks, protecting our borders, or supporting countless other essential functions, these individuals dedicate their careers to serving our country. While their work often happens behind the scenes, the retirement benefits they’ve earned are among the most comprehensive available and are unique to the federal workforce.
Federal retirement planning is also very different from what most private-sector employees experience. Rather than relying primarily on a 401(k) or 403(b) and Social Security, many federal employees retire with a combination of a FERS pension, the Thrift Savings Plan (TSP), and Social Security. Depending on when they retire, some may also qualify for the FERS Special Retirement Supplement, which can provide additional income prior to reaching Social Security eligibility at age 62.
Beyond retirement income, there are important decisions involving Federal Employees Health Benefits (FEHB), Federal Employees’ Group Life Insurance (FEGLI), survivor benefit elections, and other provisions that can significantly affect retirees for the rest of their lives. The interaction between these benefits often makes the planning process just as important as the benefits themselves.
Over the past few years, we’ve seen growing interest from federal employees seeking to better understand these decisions. In response, Nick Hamner and I completed extensive training focused on federal employee retirement planning while gaining valuable experience working directly with federal government employees and their families. Last week, we held our fourth educational workshop dedicated specifically to federal retirement benefits.
As is the case with all individuals and families, each situation is unique and carries different facts, concerns, and goals. Career length, retirement eligibility, military service, health insurance considerations, family circumstances, and retirement goals all influence the decisions that make the most sense. A personalized strategy can help ensure these valuable benefits are coordinated in a way that supports both retirement income and long-term financial security.
As we celebrate the Fourth of July, we extend our appreciation to those who have devoted their careers to public service. If you or someone you know is a current or former federal employee with questions about retirement planning, or would like to attend a future educational workshop, we’d be happy to help.