The number one fear of retirees is running out of money- either out living their assets or not having enough income to keep up with future expenses. This fear is justified as we are all living longer and as inflation goes up, so do our expenses. So how do you protect yourself?
When it comes to saving for retirement as a federal employee, one of the options at your disposal with the widest variety your TSP, or Thrift Savings Plan.
DO YOU HAVE A WRITTEN BUDGET AND A PLAN!?
As a federal employee preparing for retirement, there are several things that you need to be concerned about. The key to making sure that everything goes smoothly is to have a budget and a plan. You wouldn’t go on a road trip or board a plane without knowing where you’re headed or preparing enough resources to make it there, right?
Whenever retirement in the United States is discussed in any capacity, even by non-federal employees, Social Security always comes up. Many people have arranged their retirement plans with Social Security assumed as part of it…but many times they are unaware of what Social Security will actually look like and how it works.
While not always common, it’s important to understand what might happen if you’re ever going through a RIF: a reduction in force. If you’re a federal employee that’s losing your position, or the position is moving to another area where you cannot relocate, then you may find yourself applying for VERA/VSIP.
The Civil Service Retirement System is a defined benefit contributory pension plan. It was established August 1st, 1920, and was later replaced by FERS in 1987.