Are you planning to retire from the federal government within 5 years?
If so, then it is crunch time to make sure everything is squared away for a great retirement
Here are 5 things that you need to know/do to be prepared.
Make Sure You Can Keep Your Insurance Into Retirement
Having the insurance that you need in retirement is crucial but unfortunately, not everyone is able to keep the federal health, life, dental, and/or vision insurance into retirement.
Here are the eligibility rules to keep your health insurance (FEHB) into retirement:
1. You must have been enrolled in FEHB (regardless of what plan within FEHB) for a minimum of five years before retirement.
2. Retire w/ an Immediate Retirement (including MRA+10).
3. Be covered under FEHB when you retire.
Learn more about keeping FEHB into retirement here.
Here are the eligibility rules to keep your life insurance (FEGLI) into retirement:
1. Retire w/ an Immediate Retirement (including MRA+10).
2. Be covered under FEGLI for the past 5 years.
3. Be covered under FEGLI on the date of retirement.
Learn more about FEGLI in retirement here.
Here are the eligibility rules to keep your Dental/Vision Insurance (FEDVIP into retirement:
1. Retire w/ an Immediate Retirement (including MRA+10).
Learn more about your dental/vision insurance in retirement.
Medicare Plans?
It is also wise to have an idea of what you’d like to do with Medicare in retirement even if you are retiring before the age of 65.
To learn more about if you really need Medicare Part B as a federal employee, check out this article.
Know Your Retirement Income (and Expenses)
As a federal employee, you generally have at least 3 sources of retirement income: Your FERS Pension, Social Security, and your TSP.
You can learn more about calculating your pension here.
You can learn more about the best Social Security Strategy here.
You can learn more about how much income your TSP will provide in retirement here.
Can You Afford to Retire?
It is crucial to know your income in retirement to answer the age old question of can you afford to retire?
You want to nail this down now while you have time to make adjustments if needed.
Understand Decisions Made at Retirement
There are three big decisions you make at retirement.
Survivor Benefit
On your retirement application you have to decide if you’d like to leave your spouse a piece of your pension if you were to pass away first.
There are many things to consider and this article digs into it.
Life Insurance
You also have to decide how life insurance you want to keep in retirement. The catch though is that it can be unbelievably expensive if you decide to keep certain parts of your life insurance into retirement.
This article discusses the options you have.
TSP (Thrift Savings Plan)
Once you retire, you have to decide where to put your TSP funds as well as how to invest it.
Should you roll your TSP to an IRA at retirement? Learn more here.
Check your SF-50’s and Working History
Your pension and retirement eligibility is all based on your age and years of service.
However, it is not uncommon for there to be major mistakes in the documents that are supposed to document your career.
That is why you always want to double check all your SF-50’s as well as any other documents that affect your career.
For example, if you bought back military time, you want to be certain that your agency has all the correct documentation to prove that it happened.
Many federal employees have had to repay deposits or work longer because their careers weren’t documented correctly.
You want to be extra careful if you have any non-ordinary service such as part-time, intermittent, or military service.
Pick a Day To Retire
The last crucial thing to do within 5 years of retirement is to pick a specific day you’d like to retire!
Congrats on making this far and being prepared for retirement.
Your future retired self will thank you many times for all the time and energy you put into being completely prepared for retirement.
