The average female federal worker lives 30 years after she retires. 30 years! Do you have enough money to live 30 years on your retirement plan? If you are like most federal employees your federal retirement plan has 3 parts:
- Social Security Payments
- FERS (Federal Employee Retirement System)
- TSP (Thrift Savings Plan) and/or whatever other investment programs you have
FERS Reminder: You should receive an annual report from Social Security and Thrift Savings Plan letting you know the amount of money you will receive from these two plans assuming all continues as planned. To determine the amount of retirement (FERS) you will use 1 percent times annual salary if you worked less than 20 years with the agency or 1.1 percent times annual salary if you worked more than 20 years with the agency. The amount of salary will be the highest three years during your time with the agency. Example:
- Salary = $100,000 x 1 percent = $30,000 (< 20 years)
- Salary = $100,000 x 1.1 percent = $33,000 (>20 years)
- $33,000 divided by 52 weeks = $634 per week minus taxes.
TSP Reminder: The Social Security portion and the FERS portion of your retirement will not get you very far in your retirement plan. Thus, you must invest diligently every year to ensure your TSP plan (and / or other investment plan) is fully funded. In 2015, the maximum amount you can invest in TSP is $18,000. The best way to invest this amount is by placing $693 in the TSP account each pay period, which will maximize your contribution with the agency’s matching contribution.
Additionally, if you are 50 years or older, you can invest another $6,000 in a program entitled TSP catch-up contribution. The wisest way to do this is to invest $231 per pay period in 2015. I’m writing this to remind you to update your TSP contributions between December 14 and 27 or no later than December 30, 2014 to ensure this plan works for you.
Strong women can create a future that allows amazing adventures for them in their retirement years if they plan for them. This is a reminder that a little planning once a year, and a commitment toward your future plan will take you a long way toward those adventures.