We believe A durable retirement plan rests on four pillars: income, health care, timing, and legacy. When these are solid, everything else should typically get easier — from taxes to cash flow to overall confidence. Consider treating this as a practical federal retirement planning checklist you revisit each year as your needs evolve.
Pillar 1: Income — Replace the Paycheck (Net, Not Gross)
Your Federal Employees Retirement System (FERS) retirement income strategy should begin with what you need to spend, not what you earned while working. Some retirees spend much less, others spend more. The correct target depends on your lifestyle, medical needs, and personal priorities.
Consider starting with guaranteed sources like your FERS or Civil Service Retirement System (CSRS) annuity, Social Security (based on claim age), and any survivor elections. Then map flexible income from your thrift savings plan (TSP), individual retirement account (IRA), savings, or part-time work. Convert balances to income using a conservative withdrawal rate and stress-test for inflation and market dips.
Helpful guardrails include:
- Set a monthly “floor” for essential expenses and fund it with stable income
- Revisit your FERS retirement income strategy each year to capture spending changes
Pillar 2: Health Care — Protect the Plan From Big Bills
Health care is one of the most significant financial variables in retirement, so confirm your Federal Employees Health Benefits (FEHB) five-year rule and build projected premiums into your long-term plan.
At 65, most retirees enroll in Medicare Part A. Then, evaluate whether Part B makes sense based on your FEHB plan, expected usage, and your expected retirement income. Higher-income retirees can fall into Income-Related Monthly Adjustment Amount (IRMAA) brackets, which raise Part B and Part D premiums. These brackets adjust each year, so even small changes in income — a Roth conversion, TSP withdrawal, or leave payout — can bump you into a higher tier.
Take a close look at dental and vision needs, long-term care coverage, and any Health Savings Account (HSA) and Flexible Spending Account (FSA) limitations.
Each Open Season, compare FEHB options to check for premium shifts or benefit changes. A quick annual review helps you avoid surprises and keep your costs predictable.
A simple check-in each fall can help you stay ahead:
- Compare FEHB options during Open Season for cost or coverage changes
- Model Medicare scenarios using your specific FEHB plan, including how your income lines up with current IRMAA brackets
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
Pillar 3: Timing — Pick Dates That Maximize Value
The timing of your retirement shapes everything from cash flow to taxes. If you retire at the end of a pay period, you preserve your leave credit. If you retire on the last day of the month, your pension starts the next day. Retiring at the end of the leave year may create a larger annual leave payout, though that payout is fully taxable in the year you receive it.
Coordinate your Social Security claim age with longevity expectations and survivor needs. Keep a cash buffer so you’re never forced to sell TSP investments during a downturn. When your timing supports your broader FERS retirement income strategy, your transition feels smoother and more predictable.
Pillar 4: Legacy — Organize, Simplify, and Direct
Legacy planning helps your family during moments that matter. Keep beneficiary forms for TSP, IRAs, Federal Employees’ Group Life Insurance (FEGLI), and other accounts up to date, as these override a will. Update your will, durable power of attorney, and advance health care directives. Confirm proper titling on your home and key accounts. Capture digital assets and passwords. And review expected survivor income from Survivor Benefit (SB) and Spousal Survivor Benefit (SBB) elections, as well as Social Security, so loved ones know what to expect.
Quick STWS Checklist Considerations:
- Compare your net income to your monthly expenses and spot any shortfall
- Make sure you meet the FEHB five-year rule and run through a few Medicare “what if” scenarios
- Choose a retirement date that works in your favor — pay period, month-end, and leave-year timing all matter
- Refresh your beneficiary forms and make sure your estate documents match your wishes
- Map out your first year of cash flow, including tax withholding and a solid emergency cushion
Bringing the Pillars Together
When income, health care, timing, and legacy all point in the same direction, retirement becomes steadier and more predictable. An STWS CFP™ can help you pressure-test each pillar and turn your decisions into a clear, written plan that grows with you.
Reach out to the team at Serving Those Who Serve at [email protected].
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. **
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.
