Federal employees plan pensions and TSP for years but often skip planning the life retirement is meant to support.
Federal employees are planners by nature. Long before retirement arrives, many have already estimated their Federal Employees Retirement System (FERS) annuity, projected their Thrift Savings Plan (TSP) balance, debated the best time to claim Social Security, calculated the value of unused sick leave, coordinated annual leave payouts, and confirmed that they can continue Federal Employees Health Benefits (FEHB) coverage into retirement.
Those decisions deserve careful attention. A retirement date chosen a few months earlier or later can affect lifetime income, taxes, leave payouts, and the timing of benefits. It is no surprise that many federal employees spend years running projections, attending retirement seminars, and refining their strategy before they finally submit the paperwork.
