According to a recent article published on the CNBC.com website, the vast majority of pre-retirees have not consulted a retirement advisor and likely won’t work with one any time soon. Though current statistics for federal workers are not yet available, there’s a good chance an even higher percentage of FERS participants are relying on do-it-yourself retirement planning.
It’s Difficult To Find An Advisor Who Understands Federal Benefits
When an advisor’s experience is predominately in the private sector, the mainstream retirement-planning advice they offer likely isn’t a good strategy for federal employees. For example, the vast majority of private sector workers do not have a defined retirement plan like the FERS annuity (pension).
In fact, over the years, private sector pensions have been replaced by 401(k)s, and other types of retirement plans, leaving only 20% of working Americans lucky enough to have a pension. If an advisor doesn’t understand how your FERS pension, Social Security and Thrift Savings Plan (TSP) can work together in retirement, you may end up making uniformed decisions.
Some Retirement Decisions Are Unique To Federal Employees
When planning your FERS retirement there are a lot of moving parts to consider. Should you retire at your Minimum Retirement Age (MRA) Or, should you work longer to qualify for the FERS 10% Bonus? Should you make post-tax contributions to the Roth TSP? Or, should you keep all of your money in the tax-deferred, traditional TSP. Other decisions that are unique to you include:
- The ins and outs of choosing a FERS survivor benefit for your spouse.
- Meeting the requirements for continuing FEHB in retirement.
- Timing when to take TSP distributions and file for Social Security.
- Plus decisions about FEGLI life insurance, FLTCIP insurance and more.
Since the OPM is prohibited from giving you advice, you have two options: figure it out on your own or work with an advisor who understands your complex federal benefits.
“From insurance and financial consultants, to attorneys and tax experts, the FRC℠ network of professionals is dedicated to helping federal workers nationwide.”
Consider Working With A Federal Retirement Consultant℠ (FRC)
Financial professionals who earn the Federal Retirement Consultant℠ (FRC) designation and certification have completed comprehensive training in all of your federal benefits. Add to this, each designee has been fully vetted including a background check.
Since the FRC℠ Designation is professionally listed with FINRA, it signifies that graduates of the program adhere to the highest ethical standards in addition to having exceptional knowledge in the FERS/CSRS systems and related federal retirement benefits. From insurance and financial consultants, to attorneys and tax experts, the FRC℠ network of professionals is dedicated to helping federal workers nationwide.
