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\n\t\t\t\tProper planning really does prevent poor performance\u2014and in retirement, it also prevents unnecessary surprises.\t\t\t\t Image: Suzanne Tucker\/Shutterstock.com
\n\t\t\t\tBy: Abraham Grungold<\/p>\n
\t\t
\n\t\t\t\tProper planning really does prevent poor performance\u2014and in retirement, it also prevents unnecessary surprises.\t\t\t\t Image: Suzanne Tucker\/Shutterstock.com
\n\t\t\t\tBy: Abraham Grungold<\/p>\n
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.<\/p>\n
Regardless of whether you are already half way out the door or are contemplating taking that step, you\u2019ll 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\u2019s not exhaustive of course, and individual circumstances vary greatly, but here are eight major considerations:<\/p>\n
EOPF \u2013 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.
\nBeneficiaries \u2013 Update all your documents that require a beneficiary. You may not want to leave some assets to a former spouse.
\nLife Insurance \u2013 How much life insurance do you need in retirement? As you age, your insurance needs may change.
\nDivorce \u2013 Review any obligations you promised to an ex-spouse. You may need to send your divorce decree documents along with your retirement application.
\nFEHB Open Season \u2013 Time to shop for a plan that provides your needs. Reviewing benefit options and the cost associated with those options that are important.\u00a0\u00a0Your medical needs change as you age. (You have until Dec 10)
\nSocial Security \u2013 Will you start taking social security or defer it?\u00a0\u00a0There are many factors that go into deciding when to take social security.
\nThrift Savings Plan \u2013 When will you start withdrawing from your TSP? You can make withdrawals and not affect the future growth of your TSP.
\nWorking in Retirement \u2013 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 \u2013 or even just staying active.<\/p>\n
As you prepare for retirement whether now, next year or beyond, there are a few more areas you don\u2019t want to overlook\u2014items that may not be top-of-mind now, but can make a world of difference once you\u2019re actually living on a fixed income, and maybe not feeling quite so spry.<\/p>\n
Discussing your finances with your spouse and being on the same page is important.\u00a0\u00a0My parents discussed everything and planned all their activities in harmony.\u00a0\u00a0They never squabbled about the little things in retirement.<\/p>\n
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.<\/p>\n
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\u2019s important to decide whether you need private long-term care insurance or whether you\u2019ll self-insure and plan accordingly.<\/p>\n
Taxes are also part of the retirement puzzle. RMDs begin at age 73 for most retirees, which means you\u2019ll 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.<\/p>\n
And don\u2019t 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.<\/p>\n
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\u2014and in retirement, it also prevents unnecessary surprises.<\/p>\n
Abraham Grungold is a retired federal employee with 36 years of federal service \u2013\u00a0including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor.\u00a0 Through his company\u00a0AG Financial Services\u00a0he 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.<\/p>\n
Eight Key Topics to Cover Before Your Federal Retirement<\/a><\/p>\n Negative TSP Cash Flow Continues; Hardship Withdraws Elevated in October<\/a><\/p>\n Missed TSP Investments to Be Made Up, but No Earnings Credited<\/a><\/p>\n What Retirement Date Maximizes My Federal Benefits?<\/a><\/p>\n See also,<\/p>\n Using FEDVIP to Fill Gaps in Health Insurance Coverage<\/a><\/p>\n The Best Ages for Federal Employees to Retire<\/a><\/p>\n Best States to Retire for Federal Retirees: 2025<\/a><\/p>\n