As you work and save for retirement, you aren’t just doing it for yourself. You also want to enjoy a long, happy, and comfortable life with your spouse. But what happens if you pass away prematurely? You might wonder how your spouse would be financially affected, and what would happen to your federal employee retirement benefits.
A lot depends upon the timing. But in general, the surviving spouse of a CSRS employee is eligible to receive 55 percent of the working spouse’s pension. This is figured upon the pension you would have received if you were still alive and retired, so naturally the amount does vary from one person to the next.
Your spouse would also be able to draw spousal benefits from your Social Security record, when he or she reaches full retirement age. This is assuming, of course, that your benefits are greater than your spouse’s benefit amount. Otherwise he or she will simply claim their own benefit when that time comes.
If the above two forms of income sound insufficient to provide for your spouse’s needs in the event that something happens to you, consider two additional options: Life insurance and another form of savings. There are many forms of life insurance available to you, with a lump sum death benefit paid out to your spouse (or some other beneficiary of your choosing) in the event of your death. It’s important to perform a needs analysis before selecting a policy amount, so that you can provide adequately for your survivors.
And of course, there is the Thrift Savings Plan. Any money that you contribute to this retirement fund accumulates over time, and in the event of your death will be passed to the beneficiary that you name.
For more information on your federal employee retirement benefits, or to learn how you can protect your spouse and children, give us a call. We can sit down and discuss your benefits as well as the various options you can utilize to protect the ones you love most.
