Getting a Better Understanding of Your FERS Retirement

Posted by Felixawet on January 28th, 2020

When we talk about FERS retirement, we basically talk about the various benefits associated with it. The three major components of FERS are — basic FERS retirement pension, social security, and thrift savings plan (TSP). Your FERS social security and pension will be a fixed amount, however the money you will get from your TSP will rely on the amount of money you have contributed and how efficiently yo have managed the money. You can find FERS retirement calculator for the same to get a more in-depth information.

When You Can Retire Under FERS?

To successfully retire under FERS, you need to attain a certain age and have enough years of genuine service. The age and the number of creditable service may be dependent on the type of retirement rules you go out under. Additionally, your eligibility to retire will depend on: your age, service years and the type of retirement that you intend to choose.

For instance a regular immediate FERS retirement, it is mandatory to reach your Minimum Retirement Age (MRA) and have 30 years or more of creditable service. But you may also be fit to qualify if you are at least 60 years of age at the time of retirement having 20 years of service, or you can be at least 62 in age along with 5 years of creditable service. There are numerous types of FERS Retirement, each with their own requirements of age and years in service. You need to read them in greater details to see which ones is best suited in your case.

Gross Versus Net FERS Pension

Once you have done all the necessary calculations on your gross pension, it becomes necessary to take a look at your net number. One of the most common mistakes fed employees make is that they plan according to their gross pension and not on the net, which should be otherwise. They calculate the pension, but they don’t remember to look at the amount that they will actually take home every single month.

Thrift Savings Plan for FERS

The Thrift Savings Plan (TSP) can be considered to be a unique account for fed employees. The TSP was originally created as a major part of the FERS in the year 1986. Most of the government employees (FERS and CSRS) are entitled for the TSP, even those who were hired before it was created.

We hope you found this post useful and now it is time for you to hire a financial consultant to learn more on the perfect FERS annuity supplement calculator.

Author: The author is a blogger and the article is about FERS retirement plan.