A news and educational resource pooling excerpts from various news and information sources from the web for the Federal Retiree.
Article Excerpt: "...FERS defined benefits are smaller—an average of about $1,600 monthly and a median of about $1,300, for annual figures of $19,200 and $15,600—because that program also includes Social Security as a basic element. The average Social Security benefit is about $1,500 a month..."
Article Excerpt: "...In case you hadn’t noticed, inflation is at a 20 year high. Gasoline prices have jumped 40%. Houses are up 30% in many spots. A new car costs an average of $40,000-plus. And this may be the new normal, according to some experts. That’s the not-so-good news. ..."
Article Excerpt: "...What would he do? How would he spend the long days that were once filled with meaningful, important work? If you like your endings at the beginning, I can tell you that this one is a modified happily-ever-after. We have finally almost figured it out. We’ve adjusted, as we knew we must, to a whole new chapter in our lives and our marriage. It hasn’t been easy. But like most challenges, it’s been worth the effort. ..."
Article Excerpt: "...Social Security promises a lifelong payout of retirement benefits based on your earnings record. Yet, Social Security checks don’t magically start to appear at your doorstep as soon as you retire. In fact, it can take some work to figure out exactly how Social Security works and what you have to do to get your first check. Here’s a quick step-by-step guide so you’ll have the tools you need to initiate your Social Security retirement payments. ..."
Article Excerpt: "...As America’s economy reopens, we’re seeing higher inflation rates, and this unwelcome surge should prompt retirees to consider the threat it could pose to their financial security...."
Article Excerpt: "...Key differences for federal employees retiring before immediate eligibility FERS (Federal Employee Retirement System) federal employees who do not reach their magical MRA (Minimum Retirement Age) with at least 30 years of service (age 60 with 20 years or 62 with at least 5 years) and who are considering an early retirement..."
Article Excerpt: "...The federal government has taken control of the Tampa Bay Times’ pension plan after finding its parent, Times Publishing Company, was unable to pay benefits. The Pension Benefit Guaranty Corporation announced in a letter to beneficiaries it began taking over the plan Nov. 30. ..."
Article Excerpt: "...A survey signals that younger employees may also need more realistic expectations about how much money they’ll need in later life. ..."
Article Excerpt: "...Social Security allows most people to enroll as early as age 62, but steadily increases monthly payments to those who enroll later, up to age 70. Someone who turned 65 this year and last earned $60,000 could see their monthly payment jump from $1,418 to $1,550, a 9 percent increase, by delaying their retirement by a year, according to Social Security’s calculations. ..."
Article Excerpt: "...You can apply up to four months before you want your retirement benefits to start. For example, if you turn 62 on December 2, you can start your benefits as early as December, and apply in August...."
Article Excerpt: "...The Equal Treatment of Public Servants Act (H.R. 5834), introduced by Rep. Kevin Brady, R-Texas, would replace the windfall elimination provision with a new formula that would more accurately reflect the proportion of a retiree’s career spent in government compared to their time in the private sector, and it would provide a $100 monthly rebate for retirees—and a $50 rebate each month for surviving spouses—ages 60 and older currently impacted by the windfall elimination provision...."
Article Excerpt: "...According to the SSA, the estimated average monthly benefits for all retired workers will be $1..."
Article Excerpt: "...Retired postal worker and Vietnam War veteran Truman Caddell is several hundred-thousand dollars richer after a lucky scratch-off led him to an even luckier spin on North Carolina Education Lottery's Bigger Spin lottery game. Caddell's luck started when he purchased a $10 Bigger Spin scratch-off..."
Article Excerpt: "...The average federal civil servant who retired in fiscal year 2016 was 61.5 years old and had served 26.8 years of federal service. The average monthly payment to workers who retired from..."
Article Excerpt: "... smoothed the transition from employment to retirement for those employees who retire before age 62. It’s called the special retirement supplement (SRS). The FERS annuity If you are like most FERS employees, you can figure out your retirement annuity by using a simple formula: 0.01 x..."
Article Excerpt: "...Those retired under CSRS or CSRS Offset receive a COLA regardless of their age. However, those retired under FERS don’t receive COLAs until age 62...A 5.9 increase also will be paid on Social Security benefits. That’s primarily of interest to FERS retirees, for whom Social Security is a basic part of the retirement benefit..."
Article Excerpt: "...The fly in the ointment for FERS employees is their diet-COLA system. Under it, FERS retirees get the same COLA as CSRS retirees UNTIL it exceeds 2%. So for example if a CSRS Social Security COLA is 6%, FERS retirees would get 5%. Imagine the impact on a FERS annuity of a period of extended inflation in which the FERS folks would get less than CSRS retirees during periods of inflation...."
Article Excerpt: "...If you are looking to retire early from the workforce, this is a question you may be asking. The traditional retirement age is 65 for most people. However, early retirement can give you more time to pursue hobbies and explore new interests...."
Article Excerpt: "...Even retirees who are not self-employed may be able to include Part B premiums as an itemized deduction on your Schedule A...."
Article Excerpt: "...Saver's Credit is one of the most valuable tax credits for eligible investors. Eligible Americans can claim this credit, valued at up to $2,000, if they invest in certain retirement accounts...."
Article Excerpt: "...By age 30, you should have saved an amount equal to your annual salary for retirement, as both Fidelity and Ally Bank recommend. If your salary is $75,000, you should have $75,000 put away. How do you..."
Article Excerpt: "From a hiring freeze to possibly shrinking retirement and health care benefits, the future holds some uncertainty. However, most of these changes are manageable. ..."
Article Excerpt: "...The fiscal-year-to-date average processing time increased from 79 days to 95 days between September and October, which is the highest it’s been for at least a year, according to newly released numbers from OPM...."
Article Excerpt: "...Consumer prices continued to climb at an alarmingly rapid pace last month, according to data from the Labor Department on Wednesday..."
Article Excerpt: "...While being single was once stigmatized as a lonely or unhappy state, times have changed, and more and more people are staying single and societal norms are becoming more open to all kinds of different ways of living..."
Article Excerpt: "...Being single as opposed to having the support of a spouse puts a person at a financial disadvantage in many ways, TD Ameritrade found in a survey..."
Article Excerpt: "...Time and careful planning are what you need to retire and live happily ever after, but sadly often life gets in the way..."
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. But you’ll need to carefully consider whether carrying a mortgage into retirement..."
Article Excerpt: "...Baby Boomers - all of whom are 75 or younger = have taken this opportunity to enjoy their 60s instead of working through them. People most commonly retire in their 60s now..."
Article Excerpt: "It’s never too early to start planning for retirement! In fact, it’s encouraged to begin planning for the day you retire as early as possible. The sooner you begin planning..."
Article Excerpt: "...As of May 2021, the average check is $1,430.73, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average...."
Article Excerpt: "...The median annual pension benefit ranges between $9,262 for private pensions to $22,172 for a state or local pension, and $30,061 for a federal government pension and $24,592 for a railroad pension. ..."
Article Excerpt: "...The Alabama Property Tax Exemptions for Seniors. The Alabama citizens who are over 65 years of age, disabled, or legally blind are exempt from the state portion of property tax. County taxes may still be due. You can reach out to your local taxing official to claim your homestead exemption .."
MORE READING: Madison County Alabama makes it easy to search your current and past Madison County Property Appraisal and Tax Payments
Article Excerpt: "...Because you spend your whole working life paying taxes to Social Security, you may hope to avoid a tax bill when you finally..."
Article Excerpt: "...The U.S. Department of Labor Employment and Training Administration’s Senior Community Service Employment Program (SCSEP) helps subsidize part-time employment and training in community service positions so that older workers can move to unsubsidized, private sector jobs.
Get started by..."
Article Excerpt: "...This Department of Labor (DOL) program helps seniors obtain long-term employment through the learning of new skills such as computer programming and through paid community service at public facilities including schools, hospitals, daycare centers, and senior centers. The idea is that, through this subsidized on-the-job training, you will eventually gain unsubsidized employment..."
Article Excerpt: "...The Social Security Administration's Benefit Eligibility Screening Tool (BEST) provides an easy way to find out if you qualify for any additional programs run by the SSA. In addition to Social Security and Medicare, programs covered include SSI, disability, family, spousal/widow(er), and special benefits for veterans. BEST lets you make make sure you don't miss any benefits for which you qualify; the screening can all be done online..."
Article Excerpt: "...Other government programs are also available, but many older citizens do not participate for a variety of reasons, including lack of knowledge about available programs and the complexity of the application process.3 Read on to learn about what's available, who qualifies, and how to obtain help..."
Article Excerpt: "...Federal retirement claims processing is almost back to its pandemic peak. In August, claims took an average of two-and-a-half months — 93 days — to process, compared to 91 days in July and 78 days in June. This is the second-highest monthly processing time since July 2020..."
Article Excerpt: "...You may also be able to fill out an application for Social Security retirement benefits through your online account. “Certain types of benefits, such as claiming benefits as the survivor of a deceased spouse, cannot be filed online,” Panko says. For these claims, head to your local Social Security office or call the Social Security Administration..."
Article Excerpt: "...“Most people are going to say, ‘Well, that’s what the government told me’ and let it drop. And that’s unfortunate,” says CFP Mary Beth Franklin, author of “Maximizing Social Security Retirement Benefits” and a contributing editor for Investment News..."
Article Excerpt: "...At least three agencies have warned employees in recent months of delays at the National Finance Center, one of the four major federal payroll providers that processes and submits retirement packages to the Office of Personnel Management for further review. Federal News Network reviewed letters from two of the agencies that described retirement processing delays and spoke with a retiree from a third agency, which also warned the wait for annuity payments could be longer than normal..."
Article Excerpt: "...millennials and members of Generation Z—started saving much earlier than their parents, which means their assets will have more time to grow. “People are doing an admirable job,” said Catherine Collinson, president and CEO of the Transamerica Center for Retirement Studies. “With everything that they’ve had to face, it’s very impressive people are still planning about their future..."
Article Excerpt: "...Separating your assets from those of your spouse can be particularly tricky if your pension plan is at stake. A pension earned by one spouse is generally considered a joint asset, which means it's subject to division in divorce. If a marital split is in the works, here's what you can do to shield your pension benefits as much as possible..."
Article Excerpt: "...People who retire voluntarily under the FERS don’t get any cost-of-living adjustment until they reach age 62. And once they are eligible for inflation catchups, they are under the diet COLA rule, meaning that once the January COLA exceeds 2 percent, FERS retirees get less. If the January 2022 COLA is 6%, CSRS retirees will get the full amount. FERS retirees (except for law enforcement, air traffic controllers and others under mandatory age rules) won’t..."
Article Excerpt: "...In this favorable environment for higher dividend income, below we analyze three blue-chip stocks which could prove a good fit for any retirement portfolio..."
Article Excerpt: "...Economic Innovation Group proposes to expand on the federal Thrift Savings Plan—the retirement savings plan used by the federal government for its employees—to all working Americans. Voters seem to be on board, and support for a universal savings plan (78%) beat out other prominent wealth-building initiatives by a large margin like universal basic income (47%), child allowances (41%), and baby bonds (40%), according to the survey..."
Article Excerpt: "...“I’m a little bit worried about retirees who are very sensitive to gasoline prices … and thinking they have to cut back might might make elders more isolated,” she said..."
Article Excerpt: "...We won't know exactly how much Social Security will increase next year until October, but based on June's inflation data, the cost of living adjustment (COLA) in 2022 could top 6% for the first time since 1982..."
Article Excerpt: "...The average retired worker should receive $1,479 in December from Social Security. But the typical retiree in these states nets an even beefier average benefit..."
Article Excerpt: "...Social Security taxes are based on what's known as your provisional income -- your adjusted gross income (including pension payouts and retirement-account withdrawals but not counting Social Security benefits)..."
Article Excerpt: "...future retirement benefits of the vast majority of feds who are under the Federal Employees Retirement System (FERS). Unlike the earlier Civil Service Retirement System (CSRS), which gives retirees full inflation protection for life, FERS has a diet cost of living adjustment (COLA) feature that over periods when inflation is 2% or higher can and will dramatically reduce their benefits, even as living costs rise dramatically..."
Article Excerpt: "...You might have read the common rule of thumb is that you should have “80% of your pre-retirement income in retirement to maintain the same lifestyle”. How much money should you really have, and how does this “rule” pertain to federal employees? The “80% rule” is what many financial professionals ..."
Article Excerpt: "...There are two application forms for immediate retirement. You’ll find the one for CSRS employees at www.opm.gov/forms/pdf_fill/sf2801.pdf and the one for FERS employees at www.opm.gov/forms/pdf_fill/sf3107.pdf. While the explication and direction for the CSRS one takes up 11 pages, the one for FERS takes only four. Both do a pretty good job of leading you through the boxes but I thought it might be useful to walk you through the forms and highlight what you’ll need to have at hand when you do fill one out..."
Article Excerpt: "...Each year, Social Security recipients are eligible for a cost-of-living adjustment, or COLA. COLAs are calculated based on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures fluctuations in the cost of common goods and services. When inflation strikes and the CPI-W rises, seniors on Social Security are given a raise. But when the CPI-W drops or stays flat, seniors can be denied a COLA..."
Article Excerpt: "...These tips on retirement saving and investing can help retirees get more income than Social Security provides...."
Article Excerpt: "...For many contemplating retirement, one’s future living arrangements is the most thought about – yet least acted upon – aspect of retirement planning. According to the U.S. Bureau of Labor Statistics even though housing is the largest average cost in retirement, older Americans move far less often than the general population..."
Article Excerpt: "...There are other ways to stoke your curiosity. Start a “Things To Learn About” list and keep it in a visible place. For instance, ask neighbors how they’ve planted such a lush garden or read about a foreign country to get to know it better..."
Article Excerpt: "...While some of them may come a little late in the year for those of you who have already decided to leave around the end of this year, they will really help any of you who are planning to retire in 2021 and beyond..."
Article Excerpt: "...What is “average” of course depends on what is being measured, but it’s instructive to see how federal retirees fit in a recent study by the Employee Benefit Research Institute which concluded that there are five broad categories of retirees. In the middle, of course, are what it called average retirees. They are characterized, for example, by having “intermediate” levels annual income—for three-fourths of them, between $40,000..."
Article Excerpt: "...The supplement represents what you would receive for your FERS civilian service from Social Security. It is calculated as if you were eligible to receive Social Security benefits on the day you retired. The supplement is paid by the Office of Personnel Management as part of your FERS retirement. Here are five things to know if you’re thinking about retiring with a FERS supplement—or are already receiving one..."
Article Excerpt: "...Not necessarily. Your benefit will not fall — you are due a certain benefit based on your work up until now. Quitting work before you're old enough to claim benefits won't reduce that amount when you do claim it. But if you stop work now, your benefit won't get any larger. Social Security benefits are based on your highest 35 years of earnings. If you have fewer than 35 years..."
Article Excerpt: "...In some cases, they realized that they weren’t ready to retire emotionally or mentally. In others, they figured out that their annuity actually wouldn’t be enough to get by on. Others had made a snap decision to retire because of some conflict or development in the workplace..."
Article Excerpt: "...Federal employees have several options with respect to what they can do with their TSP accounts after they retire from federal service..."
Article Excerpt: "...Workers and spouses covered by a worker’s current employment health plan also have a special enrollment period to sign up for Medicare after retirement. If you miss the initial or special periods, you’re left with an annual general enrollment period that runs from January through March. If you don’t sign up for Medicare Part B when you're first eligible, your monthly premium may go up 10% for each 12-month period you could've had the insurance but didn't sign up. In most cases, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part B. And the penalty increases the longer you go without Part B coverage..."
Article Excerpt: "...The number of active and retired feds with $1 million or more in their Thrift Savings Plan accounts has jumped to a record 84,808 as of March 31 of this year. That’s up from 27,212 TSP millionaires in March 2020. The vast majority of TSP millionaires got there by investing steadily in the C, S and I funds — even when the markets tanked..."
Article Excerpt: "...reducing your tax bill can be a great way to stretch every dollar. One of the biggest factors that will determine your tax bill in retirement is where you live. There are significant tax differences depending on which state you retire in. States levy three main types of taxes: income tax, sales tax, and property tax. You will want to pay attention to all 3 before you make a decision on where to live..."
Article Excerpt: "...For those approaching retirement as well as the currently already retired, here is a forum to share ideas and thoughts and exchange questions and answers..."
Article Excerpt: "...beneficiary who claimed in 2022 was projected to have a benefit that was 3.5% higher than the prior year, or a monthly check of $2,070. Instead, because of the decline in the average wage index in the year she turned 60, she would receive $1,881 a month, Goss said in his statement..."
Article Excerpt: "...Yes, health care can be expensive in retirement, but there are some things you can do now to get your ducks in a row...."
Article Excerpt: "...feature in the Social Security benefit formula that makes the critical calculation of an individual's initial Social Security retirement benefit (which is linked to the year that workers turn age 60) is sensitive to economic recessions. Known as the average wage index (AWI) Read more at: https://www.lelezard.com/en/news-19640181.html...The Social Security COVID Correction and Equity Act," introduced by Representative John Larson (CT-1), and the "Protecting Benefits for Retirees Act", introduced by Senators Tim Kaine (VA) and Bill Cassidy (LA). The Senior Citizens League strongly endorses legislation that would fix not only this potential notch but also provide permanent protection from this sort of recessionary reduction for future retirees as well..."
Article Excerpt: "...The 2021 tax-filing season is getting off to a delayed start. The IRS recently announced it would first begin accepting tax returns on Feb. 12, whereas the agency normally starts taking returns at the end of January. If you're expecting a refund on this year's tax return, you may be eager to start gathering your paperwork and getting your taxes together. But if you took a CARES Act withdrawal from your retirement plan last year, you'll also have some big decisions to make..."
Article Excerpt: "...When federal employees begin exploring their retirement options, they realize they have more questions than answers. Federal Times Retirement Columnist Reg Jones, former head of retirement and insurance programs at the Office of Personnel and Management, has heard them all...."
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..."
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..."
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..."
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..."