2025 FERS COLA Latest Predictions!

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[@GracieValenti1]

I just don't see how they can come up with an inflation rate of 2-3% with a straight face. Insurance has gone up, taxes have gone up, food, energy, medical and fuel costs have skyrocketed. I'm going to start having to take out quite a bit more from TSP than I had planned just to stay even with my own personal inflation rate. Good grief.

[@b.coxemba6799]

What taxes went up? I retired at 51 in 2021 and lived off my pension and veteran compensation. Never touched my TSP, don't receive distribution from social security. My wife doesn't have any income coming in. We saved thousands each year. God honest truth.

[@GracieValenti1]

@@b.coxemba6799 State taxes - I live in California.

[@asandrik3124]

@@GracieValenti1then that would be a California tax inflation rate/issue not a national one. That said, I agree 2-3% is a joke. If the went back to the older calculation more like 5-7%.

[@BC-te9ow]

Agee with all. Problem is decline is a choice. Americans chose this.

[@David-cv3bp]

@@b.coxemba6799 , congratulations however if you retired at 51 you must be a Special Provision retiree. So, your retirement is higher than most other federal retires and if you get the max VA compensation, your retirement income is over $100,000. That is very well above the usual 20-55 thousand the usual retiree receives.

[@_Fake_Rolex]

If you're a federal employee and have TSP, do this simple math calculation: Look at the closing number of the S&P 500 today and the number at the beginning of this year. The gain in the first 6 months is 690. If you're in the C fund, your account is directly tracking the S&P. Let your TSP grow much more than you earn working. The FERS annuity isn't going to be enough to get you through retirement. The TSP will, if you allow it to. Even with the ups and downs, the C fund will make you a millionaire. Don't take my word for it. Look at the numbers yourself.

[@joet.7831]

If you actually look at the C fund earnings vs the S&P 500. The C fund is actually higher.

[@Royale_with_Cheeze]

@@joet.7831 If you're in the C fund, you're getting your gains and losses according to the performance of the S&P.

[@felicia19061]

Hi I just came to the same conclusion despite my embarrassingly limited knowledge of financial matters - I moved my L entirely to the C - I am a little nervous but hopeful. Any suggestions for me? Thanks

[@Royale_with_Cheeze]

​@@felicia19061 As the saying goes, "past performance cannot be used to gauge future results", unless the stock market goes full 1929 on us, and there are safeguards built in to prevent that complete meltdown, even with the ups and downs, the S&P 500 has been going great. If you get nervous, you can put your account back into L - or even G for complete immunity from loss - in two days time. Moving before noon on any given day takes effect after trading on the following trading day. Once you moved out of C, you can't get back in until the following month.

[@David-cv3bp]

I appreciate how you distinguish between “special provision” retirees all the time nowadays.

[@javiersmith2216]

If you retire at 62 and your birthday is in december your pension cola wont kick in for 13 months.

[@edhcb9359]

As far as public sector pensions go, FERS is pretty weak overall. Most American citizens would love to have something like FERS help them in retirement though.

[@robinvaughn9459]

Why don't pre 62 retirees get a cola raise? I have never understood that.

[@ggjr61]

The government does this type of thing to anything related to seniors, Medicare, social security etc.

[@zenawarrior7442]

Thank you for the info again😉

[@PlanYourFederalBenefits]

No problem 👍

[@arequina]

I fall into this pre-62 category. I retired at 56.5 which was last year.

[@dmart3767]

Tell your congressperson and Senators to vote for HR 866.

[@asandrik3124]

I’m only partly concerned about the COLA. I believe a future Congress will take it away so run my numbers with 0% and at best 2% COLA. What has me more concerned is can Congress take away our pensions? What protects them? A war on government employees is coming how much can we depend on our Base Annuities????😢

[@raulmolina362]

Can I list my children as my TSP beneficiarary instead of my spouse?

[@PlanYourFederalBenefits]

Yes

[@eandrgoodwin]

DH, would you discuss what happens for a retiree when you turn 62? I retired at 56 and I heard that they recalculate our pension when we turn 62, but I’m not sure what that means.

[@David-cv3bp]

If you are an immediate retiree annuitant collecting the FERS SSA Supplement, then the month you turn 62 will be the last month for the payment. So technically your total retirement goes down. I say technically because your actual retirement payment is not effected, only the supplement.

[@McFaddis]

You lose the supplement portion

[@Chard-man-G]

Ok, I know the supplement goes away, but somewhere i heard they actually recalculate your pension, not just start adding the COLA. So, say your pension was $2000/month from age 56 to 61 and say there’s going to be a 2% COLA after you turn 62. When you turn 62, is your pension now $2,040? Or some other number?

[@David-cv3bp]

@@Chard-man-G , your pension is set when you retire unless you became a rehired annuitant for a period of time. When COLA is applied then there is a recalculation as you call it, but it will not happen the month you turn 62, it will be prorated for the remainder of the year. www.opm.gov/retirement-center/my-annuity-and-benefits/annuity-payments/#url=Cost-of-Living

[@Chard-man-G]

Ok, I know the supplement goes away when you turn 62, but somewhere i heard they actually recalculate your pension, not just start adding the COLA. So, say your pension was $2000/month from age 56 to 61 and say there’s going to be a 2% COLA after you turn 62. When you turn 62, is your pension now $2,040/month? Or some other number?

[@Cancer3686]

Do you get a COLA increase if you retire before 62 because of a medical/disability?

[@wetfish338]

I recommend you cut back on the caffeine before you do a video.

[@felicia19061]

Why do you move around so much? It's difficult to focus on what you are saying! Bad when it's just a torso shot and so much worse with a body view😕just some constructive suggestions- I appreciate your info!👍🏼