In this episode, Katelyn and Jen discuss the tradeoffs between federal service and contracting, the 2025 pay raise versus inflation, and key retirement planning challenges, closing with actionable steps for employees to consider.
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The Fed15 Podcast: Contracting vs. Federal Service, 2025 Pay Raise, and Retirement Challenges
Katelyn explores the federal contractor advantage, starting with the pull factors that attract federal employees to contracting and the push factors that drive them to leave federal service. She then compares contracting and federal employment, focusing on pay, benefits, retirement, and stability. Katelyn closes by outlining when making the move makes sense and the practical steps to take.
Jen follows with a discussion on the 2025 federal pay raise and how it measures up against inflation. While noting it as one of the largest raises in recent years, she highlights how government salaries continue to lag behind private sector growth and market competitiveness. Jen also examines mid-career challenges, locality pay gaps, and the complexities of retirement planning—including TSP, pension calculations, COLAs, and inflation risk—before wrapping up with actionable recommendations.
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