Federal Retirement News


Wednesday, January 13, 2021

The Importance of Budget Planning in Retirement

The Importance of Budget Planning in Retirement

Article Excerpt: "...Drawing up a detailed budget can be the difference between a carefree retirement and years of penny-pinching and worrying. Here are some tips..."



Resource: www.kiplinger.com



Read More

20 Steps to Take When Preparing for Retirement

20 Steps to Take When Preparing for Retirement

Article Excerpt: "...retirement doesn't have to be difficult or complex. Even if you don't have a detailed plan for retirement in place, taking small steps now can make a big difference as you approach retirement. Here is how to prepare for retirement..."



Resource: usnews.com



Read More

Saving an extra $100 a month in your retirement plan could leave you this much richer

Saving an extra $100 a month in your retirement plan could leave you this much richer

Article Excerpt: "...If you're already contributing money to an IRA or 401(k) plan, you're doing your part to secure your retirement. But are you saving enough? If you're years away from leaving the workforce, it's hard to know..."



Resource: www.usatoday.com



Read More

Monday, January 11, 2021

No savings at 40? I’d use the Warren Buffett method to retire on a growing passive income

No savings at 40? I’d use the Warren Buffett method to retire on a growing passive income

Article Excerpt: "...following a value investing strategy such as that used by Warren Buffett could produce even greater returns. Through buying high-quality companies when they trade at low prices, an investor can generate market-beating returns that have a positive impact on their financial future..."



Resource: www.fool.co.uk

Warren Buffett, passive income,

Read More

Friday, January 1, 2021

Should You Save for Retirement or Pay Down Debt First?

Should You Save for Retirement or Pay Down Debt First?

Article Excerpt: "...If you have some extra cash at the end of the month, you may choose to put it toward one of your financial goals. There are advantages and disadvantages to both saving for retirement and paying down debt, but in some cases, it pays to choose one goal over the other..."



Resource: journalnow.com



Read More

Wednesday, December 30, 2020

What Makes the Federal Employees Retirement System So Good?

What Makes the Federal Employees Retirement System So Good?

Article Excerpt: "...For starters, not everybody can sign up for the Federal Employees Retirement System. It – as the name implies – is for federal employees. More specifically, it’s for civil servants. They are the non-military civilian workforce that forms government departments and agencies. There are millions of such workers across the country. They system includes Federal Reserve employees and covers the congressional pension program. Those working for the National Security Agency, staff members of the White House, CIA agents and nearly 500,000 postal service workers qualify for the Federal Employees Retirement System..."



Resource: investmentu.com

Federal Employees Retirement System (FERS),

Read More

Monday, December 21, 2020

Will Federal Employees Really Have Lower Taxes in Retirement?

Will Federal Employees Really Have Lower Taxes in Retirement?

Article Excerpt: "...even though you’ve stopped working and are no longer being paid a salary by your agency, once you retire and start receiving your pension retirement, it’s as if you’re still receiving a salary from a tax perspective. This is because the money that you’re receiving from your pension is considered fully taxable..."



Resource: www.fedsmith.com



Read More

Monday, December 14, 2020

Here's the Average Social Security Benefit by Age

Here's the Average Social Security Benefit by Age

Article Excerpt: "...let's examine the average payout by age. Below you'll find a payment breakdown provided by the SSA as of June 2020 (rounded to the nearest whole dollar)..."



Resource: www.fool.com



Read More

Friday, December 11, 2020

6 Considerations For Retirees To Pay Off Your Mortgage Early

6 Considerations For Retirees To Pay Off Your Mortgage Early

Article Excerpt: "...If you plan to pay off your loan by taking a withdrawal from a 401(k) or IRA, you may want to reconsider for tax purposes. For example, if your current income puts you in the 12% tax bracket and taking a large distribution puts you in the next tax bracket (22%)..."



Resource: www.forbes.com



Read More

Wednesday, December 9, 2020

How Much Can You Collect From Social Security With a Salary of $50,000 per Year?

How Much Can You Collect From Social Security With a Salary of $50,000 per Year?

Article Excerpt: "...it's a good idea to figure out how much you can expect to receive each month. Although everyone's benefit amount will differ, here's how much the average retiree earning a salary of $50,000 per year can expect to collect..."



Resource: www.nasdaq.com

Social Security

Read More

Wednesday, December 2, 2020

All About the Many Different Types of Retirement Plans

All About the Many Different Types of Retirement Plans

Article Excerpt: "...To make matters worse, constantly worrying about money is hazardous to your health. And considering health expenses tend to go up with age, this is doubly problematic. The assumption is that healthcare costs go down once folks are eligible for Medicare. But this is far from true. ..."



Resource: investmentu.com



Read More

Friday, November 20, 2020

Supplement Paid to FERS Retirees Until Hitting 62

Supplement Paid to FERS Retirees Until Hitting 62

Article Excerpt: "...Who is eligible for the SRS? The SRS is paid to FERS employees who retire on an immediate, unreduced annuity before reaching age 62, when they become eligible for Social Security benefits—if you retire at 62 or above, you are..."



Resource: www.fedweek.com

SRS,FERS Special Retirement Supplement Eligibility,Special Retirement Supplement,

Read More

Strategies to Reduce Taxes on Social Security

Strategies to Reduce Taxes on Social Security

Article Excerpt: "...Say you're married filing jointly and your $42,000 in provisional income includes half of your $12,000 in Social Security benefits. Your provisional income exceeds the $32,000 base amount by $10,000. The amount of benefits that will be included in your taxable income is either half your benefits ($6,000) or..."



Resource: www.kiplinger.com

www.kiplinger.com

Read More

4 Things You Must Know if You're Thinking About Claiming Social Security Soon

4 Things You Must Know if You're Thinking About Claiming Social Security Soon

Article Excerpt: "...Before you file for your Social Security benefits, you'll want to make sure you know these four facts so you can make the right moves to maximize your chances at getting your checks on time and shoring up your financial security throughout your later years..."



Resource: www.fool.com

Social Security,Social Security tips,

Read More

Thursday, November 12, 2020

Read This Before You Tap Your TSP to Pay Off Your House

Read This Before You Tap Your TSP to Pay Off Your House

Article Excerpt: "...One misconception that I see is that some feds assume that traditional TSP distributions will be taxed at capital gains tax rates, but this is not the case. These distributions are simply added to your income in whatever year you take the money out. It is also important to note that the TSP is required to withhold 20% of any traditional TSP distributions to cover taxes..."



Resource: www.govexec.com



Read More

Tuesday, November 10, 2020

Will Biden Live Up to Promise of imposing the 6.2% Social Security tax on earnings above $400,000?

Will Biden Live Up to Promise of imposing the 6.2% Social Security tax on earnings above $400,000?

Article Excerpt: "...plan hinges on imposing the 6.2% Social Security tax on earnings above $400,000. Employees and their employers are taxed on earnings up to $137,000 under current guidelines. If enacted next year, Social Security would collect 7% more in revenue in 2021, 12% more in 2040, and 16% more in 2065..."



Resource: yahoo.com

Biden Promises, Biden,Social Security Tax Cap,

Read More

CPI-E vs CPI-W

CPI-E vs CPI-W

Article Excerpt: "...The CPI-E tends to grow more quickly than the CPI-W in most years, because it more accurately accounts for the percentage of income that retirees spend on healthcare and housing costs. Those two categories tend to increase several times faster than inflation, and tend to take a bigger share of retiree income. The CPI-E tends to give less weight to items like gasoline and consumer electronics which have fallen significantly in recent months and helped drag down the COLA for 2020..."



Resource: seniorsleague.org

CPI-E vs CPI-W

Read More

Friday, November 6, 2020

OPM proposes rule to fix the burden of vets’ miscalculated pensions

OPM proposes rule to fix the burden of vets’ miscalculated pensions

Article Excerpt: "...Feds that served in the armed forces, Peace Corps and Volunteers in Service to America will no longer be on the hook for agency miscalculations of their retirement deposits under a proposed rule issued by the Office of Personnel Management Nov. 5..."



Resource: www.federaltimes.com

Correcting Miscalculations in Veterans' Pensions Act

Read More

Thursday, November 5, 2020

Income Tax and TSP Withdrawals

Income Tax and TSP Withdrawals

Article Excerpt: "...The general rules regarding the federal income taxation of withdrawals from the Thrift Savings plan are: A) All withdrawals from your traditional TSP balance are fully taxable as ordinary income..."



Resource: www.fedweek.com



Read More

Monday, September 14, 2020

1.2% COLA in 2021 for Federal Retirees and Social Security?

1.2% COLA in 2021 for Federal Retirees and Social Security?

Article Excerpt: "...We still do not know what the final figure will be that is necessary for calculating the COLA to become effective in December and paid in January 2021. A reasonable estimate is that the COLA that will impact federal retirees and Social Security recipients will be about 1.2%. This missing part of the puzzle for next year’s COLA will be released in October..."



Resource: www.fedsmith.com



Read More

Friday, August 28, 2020

Retirement living: Here's what it costs to retire comfortably in every state

Retirement living: Here's what it costs to retire comfortably in every state

Article Excerpt: "...1. Alabama

• Est. total retirement spending: $894,461 (3rd least)

• Avg. cost of living: 13.6% less than avg. (3rd lowest)

• Avg. monthly homeownership cost for senior citizens: $357 (6th lowest)

• Pop. 65 and older: 17.0% (18th highest)

In Alabama, residents need an average of about $894,000 to live out their retirement years in relative comfort – below the national average of about $1.1 million. Retirees in Alabama need less retirement savings..."



Resource: www.usatoday.com



Read More

Tuesday, August 25, 2020

How to Increase Your FERS Annuity by 10% for Life

How to Increase Your FERS Annuity by 10% for Life

Article Excerpt: "... If you’re in FERS, you can actually lock in a 10% increase to your retirement annuity for the rest of your life..."



Resource: www.fedsmith.com

Retiring at 61 vs 62, FERS,

Read More

When retirement is more valuable than disability compensation

When retirement is more valuable than disability compensation

Article Excerpt: "... simulations found that, for those on Reduced FECA, FERS retirement benefits generally offered greater value if the employee had served more than 19 years as a federal employee without an injury. Meanwhile those on regular FECA saw only slightly greater FERS value once they had served 30 years or more..."



Resource: www.federaltimes.com



Read More

Tuesday, August 18, 2020

Forbes: The Best Places To Retire In 2020

Forbes: The Best Places To Retire In 2020

Article Excerpt: "...Forbes compared more than 750 locales in America, measuring everything from housing costs and taxes to healthcare and air quality. These are the top 25 cities for retirees..."



Resource: www.forbes.com

Best Places To Retire In 2020,

Read More

Saturday, August 15, 2020

How average are you and what does it matter?

How average are you and what does it matter?

Article Excerpt: "...According to the Congressional Research Service, the average person retiring under CSRS in FY 2108 got an annuity of $4,973 per month compared to $1,834 for FERS retirees. This is another reason those covered by the FERS plan must contribute to the TSP if they hope to match income in retirement..."



Resource: federalnewsnetwork.com



Read More

Should You Pay Off Your Mortgage?

Should You Pay Off Your Mortgage?

Article Excerpt: "...If you’re carrying a home mortgage in the 3% or 4% range, accelerating your payments or retiring the loan entirely may offer a better return than letting cash sit around earning next to nothing--and the numbers can be even more attractive for paying down higher-rate debt on credit cards or student loans. Wait, retirees don’t typically have that kind of debt on their balance sheets, right? Not exactly: A rising number of older households are carrying significant debt..."



Resource: www.morningstar.com

Retirement, Mortgage,

Read More

Tuesday, June 16, 2020

How much is a FERS Postal Service retiree pension?

How much is a FERS Postal Service retiree pension?

Article Excerpt: "...FERS also uses the high-3 average, paying 1 to 1.1 percent of the high-3 average salary for each year of service. Under FERS, a postal worker with a high-3 average of around $60,000 and 20 years of service earns $1,007 a month without any deductions. That equals about $12,000 annually. A worker with the same salary and 40 years of service earns $2,013 monthly, or about $24,000 annually..."



Resource: chron.com

FERS Postal Service retiree pension amount, FERS vs CSRS

Read More

Wednesday, April 29, 2020

10 Ways for Retirees to Save Money During the Coronavirus

10 Ways for Retirees to Save Money During the Coronavirus

Article Excerpt: "...there are also ways to improve your retirement finances if you implement some cost cutting strategies. Here are some simple ways to save money during the coronavirus outbreak..."



Resource: www.msn.com



Read More

Tuesday, March 17, 2020

How bad is the stock market sell-off?

Article Excerpt: "...While the drop into a bear market over the past month is the fastest on record, the Standard & Poor’s 500 still hasn't fallen nearly as much as it did at its bottom in 2009, when it had plummeted 57% during the Great Recession. The index is off nearly 30% from its Feb. 19 high..."



Resource: www.usatoday.com

2020 Stock Market Crash,

Read More

Tuesday, March 3, 2020

How Much of Your Income Do You Need to Replace in Retirement?

How Much of Your Income Do You Need to Replace in Retirement?

Article Excerpt: "...we have approximations like the 70-80 percent guideline. They give people an estimate to work towards, which is a step in the right direction..."



Resource: parade.com



Read More

Wednesday, February 5, 2020

Where the Democratic Candidates Stand on Social Security

Where the Democratic Candidates Stand on Social Security

Article Excerpt: "...Elizabeth Warren: Sanders’ main rival on the left also supports the expansion of Social Security. Her plan calls for a $200 monthly increase for all beneficiaries, with the roughly $150 billion cost in the first year to be paid for by higher taxes on the rich. The taxes include a 14.8% payroll tax on incomes over $250,000 and a 14.8% tax on investment income for the top 2% of earners. The taxes would reduce the deficit by $1 trillion over 10 years and extend the life of the Social Security trust fund ..."



Resource: yahoo.com

Elizabeth Warren Social Security Upgrade,

Read More

Tuesday, February 4, 2020

Federal retirements dropped in 2019, as employees cite wide variety of motivations to stay or go

Federal retirements dropped in 2019, as employees cite wide variety of motivations to stay or go

Article Excerpt: "...Many survey respondents said they planned to retire at age 62, because the Federal Employee Retirement System (FERS) incentivizes participants to keep working until that specific age...For the purposes of calculating their annuities, 62-year-old employees receive 1.1% of their average highest three years of salary for each year of service, instead of 1%..."



Resource: federalnewsnetwork.com



Read More

Thursday, December 26, 2019

Here's Your 2020 Military Retiree, VA and Social Security Pay Bump

Here's Your 2020 Military Retiree, VA and Social Security Pay Bump

Article Excerpt: "...Military retirees, those who receive disability or other benefits from the Department of Veterans Affairs, federal retirees and social security recipients will see a 1.6% increase in their monthly checks for 2020..."



Resource: www.military.com



Read More

Sorry, Seniors: 2020's Social Security Raise Is a Big Disappointment

Sorry, Seniors: 2020's Social Security Raise Is a Big Disappointment

Article Excerpt: "...the news on the COLA front isn't so encouraging going into 2020: Seniors will only be getting a 1.6% boost in their benefits, which pales in comparison to the 2.8% COLA they received going into 2019..."



Resource: www.fool.com



Read More

Sunday, December 22, 2019

This Is the Best Retirement Strategy for Seniors

This Is the Best Retirement Strategy for Seniors

Article Excerpt: "...There are a lot of factors to consider for a great retirement strategy -- such as your expected healthcare costs, living expenses in retirement, life expectancy, savings, investments, and retirement accounts such as a Roth IRA. The list of questions below can help you approach them all, as you aim for maximum retirement income..."



Resource: www.fool.com



Read More

Social Security Rules That Can Make or Break Your Retirement

Social Security Rules That Can Make or Break Your Retirement

Article Excerpt: "...If you're going to be depending on your benefits to make ends meet in your golden years, it's crucial to do your best to maximize those checks. And there are a few Social Security rules you need to understand to truly make the most of your benefits..."



Resource: www.nasdaq.com

Social Security

Read More

Monday, December 16, 2019

TSP: Two-step authentication mandatory before the end of 2019

TSP: Two-step authentication mandatory before the end of 2019

Article Excerpt: All TSP participants must have validated contact information and use two-step authentication to log into My Account before the end of 2019. You can avoid interruption to your account access by adding these security features in your My Account Profile Settings now. Download instructions (pdf)PDF file. Two-step authentication helps protect your account against fraud. This login process is more secure because it means that online access to your account requires something you know (your account number or username and password) and something you have (the one-time code you receive in your email or on your phone). Someone who tries to log into your account fraudulently won’t be able to gain access without the code. We recommend that you include at least one contact method on your account that will stay with you through career, such as a personal email.



Resource: www.tsp.gov



Read More

Monday, November 11, 2019

Planning for Retirement: Should You Pay Off the House Early?

Planning for Retirement: Should You Pay Off the House Early?

Article Excerpt: "...These days, more retirees are carrying mortgage debt into retirement. About half of all retirees ages 65 to 69 were mortgage-free in 2015, down from nearly 60% in 2000, according to mortgage giant Fannie Mae..."



Resource: www.kiplinger.com



Read More