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Federal Employees: Retirement Planning: A New Year’s Resolution?

Federal Employees: Retirement Planning: A New Year’s Resolution?

December 30, 2022
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As we approach 2023, have you given much thought to what your New Year’s resolution will be? According to a Government Business Council (GBC) study, only 42% of federal employees reported feeling adequately prepared for retirement. If you are among the 58% who are uncertain about their federal retirement, we encourage you to make retirement planning your New Year’s resolution!

Have you thought about your goals in retirement? Do you know how all your financial resources will work together in retirement to achieve them? How will you manage distributions and taxes? Here are some critical items that every retirement plan should address:

  1. Do you plan to move to a different state in retirement? What will be the tax implications?
  2. What will your income be in retirement? What will your federal pension and social security look like each year?
  3. What are your goals in retirement? Travel? Hobbies? College Funding? How will you fund these goals?
  4. What is your current tax situation vs. what it will be like when you retire? How will your tax liability be shaped by starting Required Minimum Distributions (RMDs) from your TSP and/or other taxable accounts?
  5. Which accounts do you plan to withdraw from first? Last? What are the tax implications of these different account types?
  6. How much investment risk should you take in retirement? What is your current risk level?
  7. What will your retirement look like if you retire sooner? Later? What if a recession occurs right when you retire?
  8. What are your legacy planning goals? Do you plan to leave some amount of your assets to children, family members, or charity?

These are only a few of the topics we address with a retirement plan at PlanVest Financial. If you do not know the answers to some of these questions, or you have other questions, please do not hesitate to reach out to our team of Fiduciary Federal Employee Benefits Consultants. With the new year approaching, it is a great chance to make retirement planning your 2023 resolution! We offer in-depth forward-looking retirement planning strategies using advanced software.

Book a no-cost initial meeting with us here:

https://www.planvestfinancial.com/p/planvest-federal

Additionally, please inquire about a Federal Employee Retirement Report  to help you gain insights regarding how your unique benefits may look in retirement, including:

  • Pension Estimates
  • Survivor benefits
  • Special Supplement
  • Social Security Estimate
  • Thrift Savings Plan (TSP) Projections
  • FEGLI Options
  • Federal Employee Health Benefits (FEHB)
  • Federal Long-Term Care Insurance Plan (FLTCIP)

 

Happy New Year!

The PlanVest Federal Team

Source: https://www.govexec.com/gbc/surfing-retirement-wave/