Eight Key Topics to Cover Before Your Federal Retirement

Proper planning really does prevent poor performance—and in retirement, it also prevents unnecessary surprises. Image: Suzanne Tucker/Shutterstock.com
By: Abraham Grungold

This year there will be well over 100,000 Federal Employees taking retirement through deferred resignation buyouts, and roughly 50,000 others retiring through more traditional procedures. There will be many other federal employees who were thinking about retiring this year but decided to wait.

Regardless of whether you are already half way out the door or are contemplating taking that step, you’ll need to think through you finances and some key decisions. This list is intended to increase your awareness of some of things that will be integral to your health and wellbeing in your golden years. It’s not exhaustive of course, and individual circumstances vary greatly, but here are eight major considerations:

EOPF – Review Your Electronic Official Personnel Folder and take a copy with you on your last day of employment. Make sure that you are taking credit for all your employment periods during your career.
Beneficiaries – Update all your documents that require a beneficiary. You may not want to leave some assets to a former spouse.
Life Insurance – How much life insurance do you need in retirement? As you age, your insurance needs may change.
Divorce – Review any obligations you promised to an ex-spouse. You may need to send your divorce decree documents along with your retirement application.
FEHB Open Season – Time to shop for a plan that provides your needs. Reviewing benefit options and the cost associated with those options that are important. Your medical needs change as you age. (You have until Dec 10)
Social Security – Will you start taking social security or defer it? There are many factors that go into deciding when to take social security.
Thrift Savings Plan – When will you start withdrawing from your TSP? You can make withdrawals and not affect the future growth of your TSP.
Working in Retirement – What are your plans to work in retirement? Whether you work full time or part time, you need to figure out if your employment is needed to support your income stream or achieve some other financial goals – or even just staying active.

As you prepare for retirement whether now, next year or beyond, there are a few more areas you don’t want to overlook—items that may not be top-of-mind now, but can make a world of difference once you’re actually living on a fixed income, and maybe not feeling quite so spry.

Discussing your finances with your spouse and being on the same page is important. My parents discussed everything and planned all their activities in harmony. They never squabbled about the little things in retirement.

One of the biggest areas is worth revisiting from the list above, your health coverage. With ongoing changes in FEHB plans and the shift into the Postal Service Health Benefits program for eligible retirees, make sure you understand how Medicare fits into your plan and what your out-of-pocket costs might look like as you age.

Long-term care is another area many folks forget to plan for. FLTCIP remains limited (new enrollments are frozen until at least late 2026), so it’s important to decide whether you need private long-term care insurance or whether you’ll self-insure and plan accordingly.

Taxes are also part of the retirement puzzle. RMDs begin at age 73 for most retirees, which means you’ll eventually have to start withdrawing from your TSP and IRAs whether you need the income or not. Think through how those withdrawals interact with Social Security, Medicare premiums, and your state tax laws.

And don’t forget the paperwork that protects your family (and family relationships): making sure your will, power of attorney, and healthcare directives are up to date. Best not to wait on this.

Finally, review your retirement date itself. Good ones for 2026 include Jan 10, May 31, Oct 31, Dec 31. The timing of your unused annual leave payout, your last pay period, and when your first annuity will be issued can all affect your income. Getting these details right helps you start retirement on solid footing. Proper planning really does prevent poor performance—and in retirement, it also prevents unnecessary surprises.

Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor. Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 100 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.

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