How to Retire With a FERS Pension

Рет қаралды 17,044

10 ай бұрын

In this video I’m going to cover the following:
-How the FERS basic annuity is calculated.
-How much your pension could be worth in portfolio dollars.
-What other sources of income you may consider.
-How much income you may need in retirement.
-How to make it all work together.
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I was recently talking with one of my clients who is coming up on 40 years of federal service about retirement. He’ll be 62 when he hits 40 years in 2024 and the back of the napkin FERS annuity math looks like this:
40 years x 1.1% multiplier = 44% of Hi-3
He’s ready to go out, and it’s much deserved.
Taking a look at OPM data, the average age for federal retirees is around 61/62 years old and the average length of service is 25 years.
Simple back of the napkin math can also get us pretty close to what the average FERS pension income from these numbers would come out to be.
How is your pension looking and what's the plan to make up the rest of your retirement income?
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Let's Connect:
Email: jholtz@districtfa.com
Linkedin: / justinholtz
Website: districtfa.com/

Пікірлер: 21

@havingfunwithpurpose9993 8 ай бұрын

That was one of the best comprehensive overview of retirement planning with FERS. Appreciate this very helpful and insightful overview that highlights key components to consider when calculating how much we may need in retirement. Thank you Justin. From a Fed planning for retirement within the next 2-3 years.

@swright5690 8 ай бұрын

I agree. Not sure what his fees are, but he might be a good fit for some fed retirees.

@justinholtz 7 ай бұрын

Thank you so much - glad you found it helpful!

@Yette 5 ай бұрын

The OPM retirement page has a detailed accurate pension calculator which can include survivor benefits, FEGLI and FEHB deductions

@freddyhollingsworth5945 Ай бұрын

FERS employees hired after 2014? are paying like 4.4%? in FERS, where as the "legacy" ones are paying 0.8%, why don't the guys paying 4.4% draw more? was the point of the change to make more income for FERS retirees or to save the Federal Gov money? Great Video!!

@pattyk8594 28 күн бұрын

Great video thank you! I was planning on taking $2K a month out of my TSP, as a withdrawal strategy and like you said to compliment my pension and SSA. My husband asked me, why did you pick $2K just because? I told him we have to get in the mind set to stop saving and start withdrawing, can't save it forever and for everyone else to inherit LOL. But according to your video, my withdrawal strategy is actually quite conservative. If I did the 4% rule, I would be taking out $40K a year, not $24K. . .so now I can tell my husband that my plan is actually conservative, so thank you :o)

@amtangsoo 6 ай бұрын

Great explanations. Simple and concise.

@itguru2037 25 күн бұрын

After taxes and medical insurance it’s way less

@andreawales1938 2 ай бұрын

Graphics would be very helpful. You throw out a lot of numbers, and many people are visual learners.

@freddyhollingsworth5945 Ай бұрын

the biggest thing that I see that "derails" retirement is the spouse will suddenly die with no warning...the household bills stay very similar, but now the household income is severely reduced by like 40% or so.... 40% of older Americans only have Social Security as the total household income... people need to plan retirement as if their spouse died suddenly or even divorced them suddenly with no warning...

@djcoolrule 6 күн бұрын

You can't prepare for death regarding retirement unless you already have a sizeable nest egg. 90% of Americans do not.

@parler8698 10 ай бұрын

Pensions are so rare.

@swright5690 8 ай бұрын

Welcome to Federal Service.

@jerrym2367 8 ай бұрын

Great video. Just found you channel. After watching your video, it left me wondering: Given that health care costs are a significant part of retirement, and FEHB coverage is a valuable, added benefit for those federal retirees eligible to keep it into retirement, how much would you calculate the value of FEHB coverage in retirement over 25 years, using, for example, a BCBS family plan? Seems to me that should also be factored into the mix. TIA.

@locker1325 3 ай бұрын

Retirement presents so many questions I think I'll just work until I die. Haha.

@tomhenry9485 3 ай бұрын

I’m confused..you mention contribution rate….tsp distribution is separate from tsp pension

@tomhenry9485 3 ай бұрын

Just meant pension not tsp pension

@asandrik3124 Ай бұрын

My fear is is it really guaranteed by the federal government or can Congress or future administration take it away from us and bare minimum they can destroy the COLA.