This content is provided by WAEPA.
WAEPA, a nonprofit, has been proudly serving the Federal workforce for more than 80 years, providing Group Term Life Insurance and other financial wellness tools. With eight decades of experience, WAEPA is uniquely equipped to provide peace of mind to Civilian Feds, wherever Fed life leads. Whether you are starting off in your Federal career or already retired, WAEPA is the name Feds can rely on.
Here, you’ll find resources around benefits, preparation, saving and expenses, planning, and more to help you feel empowered, no matter where you are on your retirement journey. Happy planning!
Benefits & Preparation
Benefits of Getting Ahead with Pre-Retirement Planning
If you are relatively early in your career, retirement may seem like a distant far-off thing. But the reality is that it’s never too early to start thinking about retirement. The earlier you begin planning, you better off you’ll be when it’s finally time to step away from Federal service. Set yourself up for future success by beginning to take actionable steps towards planning and saving now.
Understanding Why Retirement Planning is Important to Do Now
Many young people and those starting their career in the federal government believe that retirement is a long way off. While it’s tempting to put off this decision for some extra pocket cash, there are many reasons why retirement planning is necessary.
- Involuntary Early Retirement
- Unforeseen Medical Expenses
- Uncertainty of Social Security Benefits
- Well-Informed Estate Planning
Explore the many reasons why early retirement planning, especially for Federal workers, is crucial.
Explore WAEPA’s Federal Retirement Guide >
Federal Employee Retirement Planning FAQs
How Long Will I Need to Work?
Eligibility for immediate retirement depends upon age and total years of service. Only under rare circumstances can individuals pursue early retirement and still receive full annuity benefits. You can request retirement estimates for your first available eligibility through your agency.
How Do I Find Out About Unpaid Deposits?
Service credit deposits are required in situations when you have a period of service not covered by the Civil Service Retirement System or Federal Employees Retirement. This includes active military service. Agency retirement specialists can estimate deposit amounts for you.
How Much Will I Need to Save?
It can be challenging to estimate expenses and assets following retirement. Recognizing this, the Office of Personnel Management recommends the Federal Ballpark Estimate as one way of clarifying how much you will need to save over time to finance the retirement you want. You can also use the FERS Retirement Calculator to calculate your basic annuity based on your length of service and “high-3” average salary.
What is the Best Date to Retire?
Federal employees often wait for the ideal time to retire, whether it takes place at the end of the pay period, the quarter, or the year. For background information on choosing the best retirement dates, see this article from Government Executive.
Best Dates to FERS Employees in Retire in 2024 >
Planning and Saving
Saving for Federal Retirement
One of the benefits of starting your retirement planning early is more time to save money. Retirement means living on a fixed income and you want to be able to support a comfortable lifestyle. In the resources below, you’ll find strategies for saving, as well as specific knowledge around the Thrift Savings Plan for Federal employees.
Countdown to Retirement: Checklist for FERS Employees
Understanding your benefits prior to retiring is important for ensuring you meet your financial goals and objectives. Join Ray Kirk, Ph.D., Federal Benefits Specialist, to learn about how to prepare for retirement.
OPM has recently published information on frequent errors found in retirement packages and guidance for submitting complete and accurate “healthy” retirement applications. Ray will discuss common application errors and steps you can take to help smooth the retirement process.
Financial Planning Throughout Your Career
New Federal Hires
Be diligent with your planning by making sure to:
- Check everything in your Electronic Official Personnel Folder (eOPF) for accuracy
- Update beneficiary forms, including SF 1152, SF 2823, TSP 3, and CSRS, or FERS
- Update your TSP 1 Election form to ensure agency matching on your TSP savings
- Learn about Health Savings Accounts (HSA) and the FSAFEDS program
View our FedCheck for New Federal Employees >
Mid-Career Professionals
Mid-career marks another shift in your financial planning strategy:
- Review your eOPF to find out your retirement SCD
- Correct any errors in your documentation
- Determine whether you might owe any further deposits upon retirement
- Make sure your beneficiary information is correct and up-to-date
Learn more by using our FedCheck for Mid-Career Employees >
Expenses
Preparing for Expenses in Retirement
One component of retirement that is important to consider is that you will live on a fixed income. With this comes the need to ensure that expenses do not exceed your income. You may not expect certain expenses to be part of retirement. Explore resources that will empower you to anticipate and adapt to a new lifestyle in your golden years.
Are You on Track for Retirement?
There’s no one-size-fits-all when it comes to retirement planning, but now is a great time to check your progress and make sure you’re on the right path.
Talking with a financial planner can help you determine how you’re progressing toward your retirement goals and make some adjustments if necessary.
A check-up with a planner can ensure that:
1. Your Retirement Goals are Clearly Defined
Try to set “smart” goals: specific, measurable, actionable, realistic, and time-bound.
2. You Have a Clear Sense of How Much You Need to Save for Retirement
Generally, after you retire, you will need to replace 70% to 90% of your annual pre-retirement gross income. In addition to savings, your retirement income sources might include Social Security benefits, a pension and part-time employment.
3. You’re Working with a Sound, Up-to-Date Plan to Achieve Your Goals
You should revisit your plan for retirement at least once a year or whenever you experience a life change that could impact the plan, such as getting married or divorced or adding a child to your family. Update your plan whenever needed.
4. You’re Saving Enough in the Thrift Savings Plan
Try to increase your contributions to the plan by at least 1% of your pay annually.
5. You Review Your Investment Mix for Retirement Regularly
Take a fresh look at your asset allocation at least once a year or whenever you have a major life change.
WAEPA’s Free Financial Wellness Program
WAEPA members have access to a free Financial Wellness Program through our partnership with Ernst + Young (EY). Each planner has extensive experience helping people manage their finances and has received training in WAEPA’s member benefits. When you talk with an EY planner, you can be sure you’re in touch with someone who understands your needs and the options available to you.
Join WAEPA
WAEPA has been serving current and former Civilian Federal Employees since 1943, providing exclusive Group Term Life Insurance and Short-Term Disability Insurance. WAEPA members have access to a free Financial Wellness Program through our partnership with Ernst + Young (EY). This program includes access to tools and financial advisors to help manage day-to-day finances and work towards long-term goals.
