Planning for retirement always requires a thoughtful strategy, but for single federal employees, the stakes can feel even higher. A solid, self-sufficient plan for long-term care costs is critical without a partner to share income, caregiving responsibilities, or decision-making.
From managing healthcare to ensuring someone you trust is in place to act on your behalf, federal retirement planning for singles means covering every angle. Early preparation and routine check-ins can make a big difference.
Building a Resilient Retirement Income Strategy
Single Feds must rely entirely on their own income to build financial security. That starts with understanding how your Federal Employees Retirement System (FERS) benefits and Social Security will work together.
Add in your Thrift Savings Plan (TSP), and you have three strong legs to your retirement stool—but making the most of them requires a deliberate approach. A smart TSP strategy for single federal employees often includes maximizing annual contributions while evaluating whether Roth or Traditional TSP contributions make more sense.
For many, Roth TSP offers long-term tax advantages, especially if you expect to be in the same or a higher tax bracket in retirement. Speaking of tax brackets, it’s important to remember that single filers hit higher marginal tax rates at lower income levels than married couples. That makes tax planning especially important for single filers who want to avoid unpleasant surprises in retirement.
Health Care, LTC, and Estate Planning Essentials
With no spouse’s benefits to fall back on, single federal employees must plan carefully for healthcare in retirement. Your Federal Employees Health Benefits (FEHB) coverage can continue into retirement if you meet eligibility—but long-term care (LTC) is a separate challenge that requires special attention.
Many singles will face LTC needs—and they may face them alone. According to the American Association for Long-Term Care Insurance:
- 56% of adults are expected to need at least some form of long-term services and supports (LTSS)
- 10% will have needs lasting under a year
- 22% will have needs lasting five years or longer
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A 2023 Commonwealth Fund report highlights just how expensive these needs can be:
- More than one-third of U.S. adults will require care in a long-term care nursing facility
- $108,405: Average annual cost for a private room in a nursing facility
- $61,776: Average annual cost for a home health aide (paid home care)
- $54,000: Average annual cost for an assisted living facility
For single retirees, these costs can quickly erode savings without proper planning. That’s why it’s worth considering whether long-term care insurance, hybrid policies, or setting aside dedicated funds makes sense for your situation.
Estate planning also becomes even more critical when you’re single. If you’re on your own, the responsibility for decisions about your medical care, finances, and estate rests with the individuals you’ve legally designated. That makes it essential to:
- Name beneficiaries on all retirement accounts and insurance policies
- Establish durable powers of attorney for both finances and healthcare
- Keep your estate documents up to date as your circumstances or preferences change
These are not just administrative tasks—they’re vital steps to protect yourself and your assets as you age.
Creating a Support System for the Future
Building a circle of trust is one of singles' most essential steps in federal retirement planning. Whether it’s friends, family, or professionals, you’ll want reliable people in place to support you, especially in the event of illness or incapacity.
Appointing a financial power of attorney and a healthcare proxy are key actions. Choose individuals who understand your wishes and are comfortable stepping into those roles. A CERTIFIED FINANCIAL PLANNER™ professional with federal expertise can also serve as a trusted advisor, helping you weigh options, avoid costly mistakes, and stay on track.
Take Ownership of Your Future
Solo planning doesn’t mean going it alone. The earlier you start crafting your retirement strategy, the more flexibility and peace of mind you’ll have down the road. Review your plan often, especially after life changes or policy updates.
The team at Serving Those Who Serve understands the unique needs of single federal employees and offers planning support tailored to your circumstances. From developing a personalized TSP strategy for single federal employees to evaluating long-term care options, we’re here to help.
Reach out to the team at Serving Those Who Serve at [email protected] to start planning with clarity and confidence.
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
