As a federal employee, you've worked hard for years, contributing to your FERS pension, building up your TSP, and paying into Social Security. You’ve been planning for the day you can finally retire and enjoy life. But without the right retirement plan, those dreams might fall short of what you envisioned.

At Peak Federal Retirement, our sole focus is helping federal employees like you maximize your guaranteed income and achieve all your retirement goals—whether it’s travel, starting new projects, giving back through charity, or leaving a lasting legacy for your family. But we’ve seen what happens when people don’t take the time to plan ahead, and it’s not always pretty.

In this newsletter, we’re going to talk about why retirement planning is so important, what can go wrong without it, and how to avoid common pitfalls. We’ll also show you how to take the next steps toward securing your future.

The Dream of a Worry-Free Retirement

Imagine this: you’re a few months into retirement. You’re traveling to places you’ve always dreamed of, spending time with your family, and pursuing the hobbies you love. Your financial situation is stable, and you don’t have to stress about bills or unexpected expenses. You’ve got enough money to live comfortably and even leave something behind for your loved ones. Sounds perfect, right?

That’s the dream retirement. It’s the kind of retirement we help our clients achieve every day. But unfortunately, not everyone ends up there. Too many federal employees retire without a clear plan, thinking their pension, Social Security, and TSP will be enough to cover everything. They assume that everything will fall into place naturally. And that’s when things can go wrong.

What Happens Without Proper Planning?

Let’s talk about Mike. He worked for the federal government for 30 years and was excited to retire. But Mike didn’t take the time to think about how much money he’d really need in retirement or how long his savings would last. He figured his FERS pension and TSP withdrawals would be more than enough.

A couple of years into retirement, Mike started to realize his money wasn’t stretching as far as he thought. Unexpected healthcare costs started to pile up, and he didn’t account for inflation eating away at his pension. He hadn’t planned for higher taxes on his TSP withdrawals, and he didn’t have a strategy for when to start collecting Social Security. In short, Mike’s dream retirement turned into a financial headache.

Mike ended up having to cut back on his travel plans, dip deeper into his savings, and even think about going back to work part-time. It wasn’t the retirement he had imagined.

Then there’s Susan. She retired early, eager to start a new chapter. But she didn’t realize that retiring early meant a lower FERS pension and missing out on the FERS Supplement. She also didn’t consider how early Social Security claiming would reduce her monthly benefits for the rest of her life.

As a result, Susan had to live on a much tighter budget than she expected. She found herself stressed about money, worried that she might outlive her savings, and regretting not planning better before she retired.

The Importance of Planning

The truth is, without a well-thought-out retirement plan, even the best retirement benefits can fall short of your expectations. You deserve to enjoy the freedom and peace of mind that comes with retirement, and the only way to ensure that is through proper planning.

At Peak Federal Retirement, we believe in helping you create a plan that makes your money last and works for your specific goals. We help federal employees like you get the most out of their FERS pension, Thrift Savings Plan (TSP), and Social Security. We also show you how to budget for healthcare, manage taxes, and protect your legacy.

Here’s what happens when you plan ahead:

- You maximize your income. We help you figure out the best time to start your pension, Social Security, and TSP withdrawals to get the most money possible. This means more income to support your goals, whether that’s traveling, starting new projects, or simply enjoying life.

- You avoid financial stress. With a clear plan in place, you won’t have to worry about running out of money or how to cover unexpected costs. You’ll know exactly how much you have coming in and going out each month, which means peace of mind.

- You get to enjoy your retirement. When your financial situation is secure, you can focus on the things that matter most—your family, your health, and your happiness.

How to Get Started with Retirement Planning

If you’re still working and haven’t thought about your retirement plan yet, now is the time to start. Even if you’re just a few years away from retirement, it’s never too late to make sure your plan is solid.

Here’s how you can get started:

1. Take a close look at your FERS pension.   

Your pension is a big part of your retirement income, but do you know how much you’ll get? The amount depends on your years of service and your high-3 average salary. If you’re close to retirement, now is the time to figure out how much you’ll be getting. Use the [FERS retirement calculator](https://www.opm.gov/retirement-services/fers-information/retirement-calculator/) to get an estimate.

2. Think about Social Security timing.   

Deciding when to start Social Security is one of the most important decisions you’ll make. You can start as early as age 62, but the longer you wait (up to age 70), the more you’ll get each month. If you retire early, you might also qualify for the FERS Supplement, which can bridge the gap until Social Security kicks in. Learn more about [Social Security benefits](https://www.ssa.gov/benefits/retirement/) and how timing can affect your payout.

3. Make a TSP withdrawal plan.   

Your Thrift Savings Plan (TSP) is another major source of retirement income, but deciding how and when to withdraw can be tricky. Taking out too much too soon could leave you with a hefty tax bill and reduce your savings faster than you expect. Use the [TSP withdrawal calculator](https://www.tsp.gov/withdrawals/retirement-calculator/) to see how long your savings will last based on different withdrawal amounts.

4. Budget for healthcare costs.   

Healthcare is one of the biggest expenses in retirement. While your FEHB benefits will likely continue after you retire, you’ll also need to sign up for Medicare at age 65. Be sure to understand how your FEHB and Medicare coverage will work together and how much you’ll need to budget for premiums, deductibles, and other healthcare costs. Check out [FEHB and Medicare coordination](https://www.opm.gov/healthcare-insurance/healthcare/reference-materials/reference/medicare/) to learn more.

5. Plan for taxes.   

Don’t forget about taxes. Your FERS pension, Social Security, and TSP withdrawals are all subject to taxes, and the more you withdraw, the higher your tax bill could be. We can help you come up with strategies to minimize your tax burden and keep more of your income. Learn more about [taxes on your retirement income](https://www.irs.gov/retirement-plans/retirement-topics-tax-on-retirement-distributions).

Real-Life Success Story

Let me tell you about Linda. Linda was just a few years away from retirement but hadn’t put much thought into how all the pieces would come together. She was worried about whether her income would last and whether she could afford to travel and support her grandchildren.

After sitting down with us, we helped Linda map out a plan that allowed her to start her Social Security at the right time, withdraw from her TSP in a tax-efficient way, and budget for healthcare. With her plan in place, Linda felt confident and excited about retirement. She’s now living the dream—traveling with her husband and spending quality time with her grandchildren, all without worrying about her finances.

Don’t Leave Your Retirement to Chance

The biggest mistake you can make is not having a clear retirement plan. You’ve worked hard, and you deserve to enjoy the next chapter of your life without financial stress. But it won’t happen without planning.

That’s where we come in. At Peak Federal Retirement, we specialize in helping federal employees like you maximize their guaranteed income and achieve their retirement goals. Whether you’re a few years from retirement or already retired and need help adjusting your plan, we’re here to help.

Take the Next Step

We offer a free discovery call to help you get started. During this call, we’ll discuss your retirement goals, review your current plan, and offer personalized advice to ensure you’re on the right track.

Don’t wait until it’s too late. Let’s make sure your retirement is everything you’ve dreamed of—secure, fulfilling, and stress-free.