As a federal government employee, you enjoy a retirement program that is superior to those offered by many private employers. After completing your service, you will enjoy an annuity payment, your Social Security benefits, and any income generated by your Thrift Savings Plan. By contrast, many Americans can only look forward to income generated by one retirement account (such as a 401k) and Social Security.
But don’t be lulled into a false sense of security! According to a recent survey conducted by Navy Federal Credit Union, 36 percent of you haven’t started saving for retirement yet! In the case of federal employees, this would mean that you have not elected to contribute to your Thrift Savings Plan, or save money in some other savings vehicle that you establish yourself.
As you might expect, those who earn $50,000 or more annually are more than twice as likely to have a retirement plan, and are making steady progress toward it, than those who earn less. We feel it’s important to remind you that no matter how much you earn, everyone retires someday. Even if you can save only a small amount now, the power of compounding interest will help that money grow. One day you will be glad at the difference even a small amount of savings can make in your retirement income.
However, even those of you with a plan might not be completely on the right track. Of survey respondents who are saving for retirement, only 42 percent said they feel well-informed on the topic. The rest feel either completely uninformed (10 percent felt this way) or feel somewhat informed but think they could be making better choices (48 percent).
In other words, making the decision to save, and doing it diligently, are only half of the equation. You might be off to a good start, but need to make some adjustments to your plan along the way. Remember, we’re here to help. We specialize in helping federal employees plan their retirements, and we’re always available to answer any questions you might have.
If you haven’t discussed your retirement plans with a professional, give us a call today. We can help you evaluate your plan, decide if you’re on the right track, and make any necessary adjustments to your long-term vision.
