May 2, 2022 on ForYourBenefit, host Bob Leins, CPA® welcomes Tammy Flanagan, Senior Benefits Director, NITP.
This topic has become more complicated for employees retiring under the three-tiered FERS retirement system that includes Social Security, the FERS Basic Benefit (government pension) and the Thrift Savings Plan.
Today’s program will focus on the “best dates” to separate from Federal service under CSRS and FERS, and will also address the questions that are on many employee’s minds:
Teleworking over the past two years has caused many to consider retirement, especially if being ordered to return to the office.
Learn how to prepare for delays in retirement processing that have occurred throughout the retirement planning process.
There are clues to know when it’s “time” for retirement.
The best retirement date may not be the same as your coworkers.
There are important retirement planning steps everyone should take during the months leading up to your retirement date.
The discussion may also include the following related topics:
There are mental, financial, and tax preparations that need to be done before selecting your date.
It is important to have an idea of how you will spend your time in your life after retirement.
Retirement can last a long time. Some Federal retirees receive benefits for more years than they worked for the government. How to prepare for longevity risk.
Retirement is a taxable event! Learn how your benefits will be taxed in retirement.
Gross vs. Net: Understand the withholdings and reductions that will impact your net income during retirement.
Selecting the best date to retire under FERS and CSRS:
The last day of the month for FERS, CSRS and CSRS Offset optional retirements
The first three days of the month for CSRS and CSRS Offset
Any day might be a great day for your retirement
The rules are a little different for disability, early retirements and deferred retirements
The end of the leave year remains a popular date for many Feds
Be sure to include your leave balance in the retirement planning process
Thrift Savings Plan drawdown:
You can use your TSP to supplement your monthly FERS and Social Security benefits.
Be sure that you have a plan for managing your TSP post-retirement.
Applying for withdrawals from the TSP will get easier this summer!
Know when to “turn on” your Social Security retirement:
How would you answer the following questions?
What if you are working past your full retirement age?
Do you plan to work after you retire?
Are you retiring under age 62?
Are you married, widowed or divorced?
Did you start a family later in life?
Do you have a history of longevity in your family?
Will you receive a CSRS retirement benefit? Consider the Windfall Elimination Provision and the Government Pension Offset.
For questions or comments, email us in advance at ForYourBenefit@nitpinc.com