Far too many federal employees take a set-it-and-forget-it approach with their retirement plan. But you need to be prepared for the unexpected, from policies that are affecting the federal workforce to stock market volatility that could impact your nest egg. It’s important to review your retirement plan regularly; 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 retirement 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 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.
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 federal benefits specialist can help you make informed retirement decisions unique to federal employees. These include:
· Deciding on when to retire and calculating creditable service.
· Choosing between the FERS Supplement and the FERS 10% bonus.
· Deciding on 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.
Connect with a Federal Retirement Consultant (FRC®) who can provide you with a complimentary benefits analysis.
