Federal employees have access to one of the most comprehensive retirement systems available, but strong benefits alone don’t guarantee financial confidence. The Federal Retirement Thrift Investment Board’s (FRTIB) 2025 Financial Wellness Survey offers a timely look at how feds feel about their finances and retirement readiness and where gaps still exist.
The survey, conducted between May and July 2025, collected responses from FERS participants across early, mid, and late career stages, as well as retirees. Overall, the findings show a workforce that remains cautiously optimistic, while still feeling the pressure of rising costs and long-term uncertainty.
Financial Confidence Grows With Career Stage
One of the clearest patterns in the survey is that financial satisfaction increases as employees progress through their careers. Late-career employees and retirees reported the highest levels of confidence in their financial situation, while early and mid-career employees were more likely to feel strained.
Compared to 2023, overall satisfaction declined slightly, particularly among those earlier in their careers. This reflects ongoing challenges such as higher housing costs, everyday expenses, and competing financial priorities that make it harder to feel financially secure early on.
Retirement Confidence Remains Strong
Despite these pressures, most federal employees feel positive about retirement. Roughly three-quarters of respondents said they are very or somewhat confident they will have enough money to live comfortably in retirement. Confidence increases significantly for those closer to retirement, and retirees reported the highest confidence levels overall.
This trend highlights the value of clarity. As retirement approaches, employees typically have a better understanding of how their FERS pension, Social Security, and Thrift Savings Plan (TSP) will work together to generate income.
What’s Holding Employees Back
For those who expressed less confidence, the top barriers were clear: rising cost of living, concern about not saving enough, and uncertainty around long-term income sources. Debt, medical expenses, and market volatility also weighed heavily on respondents’ minds. Even with strong benefits, many federal employees struggle to balance short-term demands with long-term planning.
Planning Is Improving, But Often Late
More than half of respondents now say they have a specific idea of how much income they will need in retirement, an improvement from previous years. Many are thinking in terms of monthly or annual income, rather than a single savings target; an important shift for long-term planning.
Use of TSP educational resources has increased significantly, suggesting growing engagement. However, younger employees remain less likely to seek professional guidance, even though earlier planning can make retirement far less stressful.
The Bottom Line for Federal Employees
The message from the 2025 survey is clear: federal employees are generally confident about retirement, but financial stress remains a reality, especially earlier in a career. Building emergency savings, aligning TSP contributions with long-term goals, and reviewing your benefits regularly with a Federal Retirement Consultant (FRC®) can help build confidence and lasting security.
