The rules keep changing. There is always some new announcement or proposal, and before long, your benefits look different than they did a year ago. A solid plan can handle those swings and still move you in the right direction.
The right structure keeps you steady when uncertainty around federal retirement planning fills the news. It helps you stay focused even as policy debates and benefit discussions pick up speed.
Build an Income Floor You Can Count On
Cover your must-pay bills with income you can count on. Start with your Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) annuity. Add Social Security when the timing works for you. Then build in a bit of G Fund exposure or a cash cushion to give the plan some breathing room.
Once you've got the basics covered, the rest goes into your “flex” bucket. Pull extra from your Thrift Savings Plan (TSP) or individual retirement account (IRA), pick up some part-time work or consulting gigs — whatever helps fund travel, hobbies, or things you want to upgrade. Keeping these separate protects you when headlines start focusing on federal retirement changes.
Allocation Bands & Rebalancing (Discipline Beats Forecasts)
Don't bother trying to beat the market. Find a mix that works for you and stick with it. Give yourself about 5% wiggle room either way. If it drifts too far, pull it back in line.
If you’d rather not manage the details, the L Funds keep things simple with built-in rules. Stay mindful of interfund transfer limits. Don’t tweak your plan every time you hear talk about a policy shift. That’s how people end up off track.
Cash-Flow Cushion for Policy Surprises
Keep 6 months to 2 years in cash or short-term bonds so you can handle whatever pops up. Markets bounce around, and policy talks shift fast. Having that cushion means you won't have to make panicked moves or sell equities at the worst time.
Plan your bigger expenses, like a new car, home repairs, or trips, for years when your taxable income is lower.
Taxes: Smooth, Don’t Spike
Look at your income in layers: pension first, then TSP or IRA withdrawals, then Social Security. Once you see how they stack, it becomes easier to spot the years when taxes might jump. Work to keep your brackets steady from one year to the next.
Watch the Income-Related Monthly Adjustment Amount (IRMAA) and its two-year lookback before you take large withdrawals or complete Roth conversions. And check that your withholding and estimates fit your plan so you’re not plugging holes later.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
Benefits & Elections: Keep the Foundations Current
Open Season gives you a chance to check whether your Federal Employees Health Benefits (FEHB) plan still fits the way you live. Look at your health needs, prescriptions, and travel. Review your survivor benefit choices and your life insurance. If your long-term-care needs look different now, update that too.
Check the beneficiary forms for your TSP, Federal Employees’ Group Life Insurance (FEGLI), and IRAs — those forms control who gets the money. These designations override your will. Keep your basics in place with a will or trust (if required), a durable power of attorney, and your medical directives.
Scenario Planning: Control What You Can
Map out three scenarios. Your normal plan. A version with tighter cost-of-living adjustments. And another that assumes slower growth or benefits starting later. Decide ahead of time how you’ll adjust if needed — trim discretionary spending by 5 to 10 percent, delay a considerable expense, or adjust withdrawals for a year. This gives you a playbook when federal retirement planning uncertainty rises.
Communication Loop (HR, Agencies, Advisors)
Track updates from the Office of Personnel Management (OPM) and your agency. Keep notes on any changes. Meet annually with an STWS CERTIFIED FINANCIAL PLANNER™ to review assumptions, test your plan, and make adjustments as your goals evolve.
A Steadier Path Forward
When your essentials are covered and your plan has structure, policy changes for federal benefits planning feel like something to manage — not something that knocks you off balance. With those anchors in place, you can keep your retirement plan moving forward no matter what the headlines say.
If you want help aligning these steps to your goals, reach out to 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.
