I meet regularly with Federal employees about their retirement benefits as well as their current payroll deductions. Most are unacquainted with what their Paystub reflects but most importantly do not know which a few tweaks as to what they’re currently doing can make a big difference in their retirement.

Some key questions you should ask yourself is:

1) Will i determine what I am getting from CSRS/ FERS retirement? This can be a simple calculation which is provided in your Introduction to Benefits Workbook. Knowing this number is vital to establishing your retirement plan.

2) Do you know what your TSP contributions mean a very long time Annuity? Many people bring about their TSP as a main source of retirement funding. You should determine what the TSP will translate to in a Annuitized retirement vehicle.

3) Have you any idea when you are able begin taking Social Security? Do you know how your projected monthly Social Security Payments are? There are received a statement from Social Security regarding your benefits, you must call the Social Security office and have one shipped to you. As being a Federal Employee you could start receiving Social Security income at the age of 56 by way of a Special Retirement Supplement. A particular Retirement Supplement is often a plan executed to assist Federal employees pad their monthly income until these are entitled to Social Security Benefits. This can be for sale in your Review of Benefits Workbook.

4) What happens your FEGLI Benefits are and do you know the best way to interpret your FEGLI code in your paystub? Your summary of Benefits workbook, adopts detail in regards to the FEGLI code and ways to interpret it. The Workbook also shows some regions of concern that you need to be familiar with when approaching retirement.

5) Are you currently contributing enough or excessive in your TSP? Did you know about the 1% FERS contribution? Most of the people are not aware of that like a FERS employee government entities matches another 1% if you contribute all 5% to TSP. Thus you will get a real 100% match.

What is the perfect contribution level? If you aren’t contributing 5% to your TSP, you are making the largest error in your retirement investing. The us government matches the first 5% with a 100% match. So for every $1 dollar you invest you will get $1 dollar as well as the additional return of the fund you invest in.

On the reverse side with the coin I’ve come across many individuals invest 10% or more into their TSP and this is also a mistake. The funds within the TSP have become conservative obviously and still provide the lowest rate of return. The maximum you should invest in a TSP is 5% of your income.

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