Far too many federal employees take a set-it-and-forget-it approach to retirement planning. Then again, these days constant change is a given, from political changes that may affect your federal benefits, to changes in the stock market that may affect your retirement nest egg. That’s why it’s important to review your retirement plan on a regular basis. Otherwise, you may run the risk of dealing with a retirement income gap.
Tune Up Your Budget
An essential part of your federal retirement plan is developing a budget for when you’re no longer working. Yet far too many federal workers leave this important part of planning for the last minute only to discover they may not have enough retirement income to cover their expenses. When you consider your nest egg has to last forever, you can understand the importance of regularly tuning up your retirement budget to account for things like inflation driving up the cost of living or the rising cost of healthcare premiums and out-of-pocket co-pays. If you don’t catch the shortfall in time, you may have to delay your retirement.
Check Your Credit Reports
It’s important to check your credit reports on a regular basis because lenders and other types of financial institutions use the information to calculate their risk in doing business with you. Making sure your credit reports are accurate can also help protect you from identity theft. You can monitor your credit reports weekly and for free through AnnualCreditReport.com for Experian, Equifax, and TransUnion.
“As you get older, it’s important to reconsider your risk tolerance because you have fewer working years ahead of you to make up for any stock market downturns.”
Rebalance Your TSP & Other Investments
As you get closer to your retirement date, most financial advisors suggest rebalancing your Thrift Savings Plan (TSP) and other investments like IRAs and 401(k)s you or your spouse may have from private-sector employment. It’s also important to reassess your risk tolerance because you have fewer working years ahead of you to make up for any stock market downturns.
Is It Time To Get A Second Opinion On Your Retirement Plan?
Speaking with a highly trained Federal Retirement Consultant® can help you make informed decisions unique to federal employees. These include:
- Deciding when to retire and calculating creditable service.
- Choosing between the FERS Supplement and the FERS 10% bonus.
- Establishing a Thrift Savings Plan (TSP) withdrawal strategy.
- Timing when to file for Social Security to maximize your benefit.
- The ins and outs of choosing a FERS survivor benefit.
- Decisions about life insurance, long-term care insurance, and much more.
To get started, connect with an FRC® trained advisor in your area.
