Many federal employees set their retirement plan on autopilot and don’t look back until a sudden change throws them off course. From shifting federal workforce policies to market swings that can dent your savings, the unexpected happens. Regularly reviewing your plan can help you avoid an unwelcome surprise: a gap between the income you’ll have and the income you’ll need in retirement.
Fine-Tune Your Retirement Budget
Your retirement budget is a cornerstone of your financial future, yet too many federal workers wait until the last moment to figure it out, only to discover their income might not stretch far enough. Because your savings need to last a lifetime, it’s wise to revisit your budget often, adjusting for rising costs like healthcare premiums, co-pays, and everyday expenses driven higher by inflation. Catching a shortfall early could mean the difference between retiring on time and having to work longer.
Keep Tabs on Your Credit
Your credit report plays a big role in how lenders assess you, and mistakes can cost you money or open the door to identity theft. Check your reports regularly to ensure accuracy and spot suspicious activity early. You can review your reports weekly and at no cost through AnnualCreditReport.com for all three major bureaus: Experian, Equifax, and TransUnion.
Rebalance Your TSP and Other Investments
As retirement nears, your investment mix should reflect your reduced timeline for recovering from market downturns. Consider rebalancing your Thrift Savings Plan (TSP) and any other accounts, such as IRAs or 401(k)s from private-sector jobs, so they align with your risk tolerance and income needs. A periodic review helps keep your portfolio on track for your goals.
Get a Professional Second Opinion
A federal benefits specialist can provide personalized guidance on critical decisions, including:
- Choosing your retirement date and calculating creditable service.
- Deciding between the FERS Supplement and the FERS 10% bonus.
- Creating a withdrawal strategy for your TSP.
- Timing Social Security to maximize your benefit.
- Navigating survivor benefit options under FERS.
- Evaluating life insurance, long-term care coverage, and other protections.
For tailored advice, consider speaking with a Federal Retirement Consultant (FRC®) and requesting a complimentary benefits analysis to ensure you’re making the most of your federal retirement.
