One of the perks of federal employee retirement is that you do indeed have a lot of resources at your disposal. This can lead to some misinterpretations of what those resources are actually for.
“I have plenty of time to plan”. When you were first hired, you completed a stack of paperwork. Some of those papers concerned your retirement benefits, but when was the last time you thought about them? Do you have any idea how much your annuity payments will be? Have you increased your TSP contributions throughout the years?
If you try to research federal employee retirement online, the OPM website might just increase your confusion. But no, you don’t exactly have “plenty” of time. Retirement planning works best when it’s an ongoing process, so don’t put it off until just before retirement. Evaluate your plan now, and update it every two to three years.
“I can learn it all at the next retirement training”. Those training meetings are great (in most cases) for explaining your benefits. But you might notice that by the end of the seminar, you still don’t have a personalized retirement plan.
That’s because individual retirement planning is too personal, and can’t be taught to a class in a group context. Attending the training will help you understand what’s available, but in order to tailor your retirement plan to your own needs, you need to speak with a financial advisor.
“Human Resources can help me plan for retirement”. No, not exactly. Much like the training classes, HR can serve as a great resource for information. And when you’re ready to retire, they will help you process the paperwork.
Again, this is a situation for a financial advisor, particularly one who specializes in federal employee retirement. This is a professional who can help you determine your needs, calculate potential benefits, guide you with your TSP strategy, and assist you in setting a target retirement date.
On that note, give us a call. We can help you understand your retirement benefits and personalize a plan that suits your dreams for the future.
