5-Year Countdown to Retirement€¦ · 5-Year Countdown to Retirement National Active and Retired...

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A NARFE Federal Benefits Institute Webinar

Presented by Tammy Flanagan

5-Year Countdown to Retirement

National Active and Retired Federal Employees Association

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Five Years

Four Years

Three Years

Two Years

One Year

Financial Checkup

Begin Mental Preparations

Tie Up Loose Ends

Set the Date

The Process


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Poll the Audience

When do you plan to retire?

A. Within the next 12 months

B. More than a year, less than 5 years

C. More than 5 years

D. I’m already retired


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Poll the Audience

What is your retirement coverage?

A. CSRS

B. CSRS Offset

C. FERS

D. Transferred from CSRS to FERS

E. Not sure or none of the above


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Test Your Knowledge

What is the most important thing you can do now to retire financially secure?

A. Save more money

B. Spend less money

C. Work longer

D. Plan for the unexpected


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Test Your Knowledge

What is the most important thing you can do now to retire financially secure?

A. Save more money

B. Spend less money

C. Work longer

D. Plan for the unexpected


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Financial Checkup

Retirement Estimate • CSRS or FERS • Compare Two Dates

Survivor Elections • Maximum • Partial • Insurable Interest • Former Spouse


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Other Reductions • Part-time • Age (MRA + 10) • Former Spouse • Unpaid Deposit/

Non-creditable Service

Insurance Withholdings


Financial Checkup

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Financial Checkup

Tax Planning • CSRS or FERS

• Federal Tax • State Tax

• Social Security • Federal Tax

• None • 50% • 85%

• State Tax

• Thrift Savings Plan • Traditional • Roth


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Insurance • FEHB

• Five-Year Test • TRICARE and FEHB • Evaluate plan

• FEGLI • Five-Year Test • How much coverage needed? • Open Season 2016 (2017/2022)


Financial Checkup

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•FEDVIP

•LTCFEDS

•Premium Conversion •Pre-tax / Post-tax

•Flexible Spending Account


Financial Checkup

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Thrift Plan on Track • Withdrawal Options

• Partial Withdrawal • Full Withdrawal

• Monthly Payment • Lump Sum • Annuity

• Crank up savings • Learn to live on less • Tax deferral • More to enjoy later


Financial Checkup

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Social Security Strategy

62-70

•Are you still working?

•Do you need the money?

•How long are you going to live?

•Is someone else depending on your income?


Financial Checkup

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Net-to-Net Comparison

•Salary minus withholdings

•Retirement income (CSRS or FERS + SSA + TSP) minus withholdings


Financial Checkup

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Salary minus withholdings

•CSRS or FERS

•Taxes (FICA, Medicare, Federal, State)

•Thrift Savings Plan

•Insurance (FEHB, FEGLI, FEDVIP, FLTCIP)

•Other withholdings?


Financial Checkup

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Retirement Income (CSRS or FERS + SSA + TSP) minus withholdings

•Taxes (Federal and State?)

•Insurance (FEHB, FEGLI, FEDVIP, FLTCIP, Medicare)


Financial Checkup

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Do you need professional help?

www.USA.gov/retirement

www.investor.gov

•Fact Sheets

•Education

•Retirement Planning

•Understanding Investment Products

•Working With a Financial Professional


Financial Checkup

http://www.USA.gov/retirement

http://www.investor.gov

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https://www.youtube.com/watch?v=dZ26tm0ovb4 How to Plan For Retirement Usa.gov Time: 2:54


https://www.youtube.com/watch?v=dZ26tm0ovb4

https://www.youtube.com/watch?v=dZ26tm0ovb4

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Test Your Knowledge

According to recent surveys, what are three secrets to a happy retirement?

A. Own your own home, have lots of money invested, and live close to your family

B. Rent your home, have hobbies that are social, keep working past age 65


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Test Your Knowledge

According to recent surveys, what are three secrets to a happy retirement?

A. Own your own home, have lots of money invested, and live close to your family

B. Rent your home, have hobbies that are social, keep working past age 65


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What will you do?

• Post-retirement employment restrictions

• Volunteer or compensated

• Need additional education

• Hobby or same work

• Phased retirement

• Dual compensation waiver


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Natural Resources Conservation Earth Team Volunteers - Work with private landowners to improve soil quality, conserve water, improve air quality and enhance wildlife habitat

National Oceanic and Atmospheric Administration (NOAA) - Volunteers take part in research, observation and educational roles that benefit science and the planet.

Volunteer.gov - Volunteer opportunities in America's natural and cultural resources, including national parks

CitizenCorps.gov - Get training in first aid and emergency skills. Volunteer to support local emergency responders and disaster relief efforts.

PeaceCorps.gov - Find volunteer programs where you serve abroad and make a difference by working directly within communities to build capacity in education, health, environment and more.

JoiningForces.gov - Start a volunteer project, send a message of thanks or give service hours to support our service members and their families.

Serve.gov - Sign up for volunteer opportunities and create projects. Tool kits are available to help develop your ideas into projects.

Federal Election Volunteers – Become a Poll Worker - Assist election officials in your state.

http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/people/volunteers/

http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/people/volunteers/

http://www.volunteer.noaa.gov/

http://www.volunteer.gov/

http://www.ready.gov/citizen-corps

http://www.peacecorps.gov/

https://www.whitehouse.gov/joiningforces/get-involved

http://www.serve.gov/

http://www.eac.gov/voter_resources/become_a_poll_worker.aspx




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Family and Lifestyle Considerations

• Health issues

• Caregiving

• Grandchildren

• Spouse on board with retirement

• Move closer (or farther away)

• Move in

• Move

• Downsize


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How much will your annual retirement increase if you work three more years and your high-three average salary of $75,000 increases to $77,250?

A. $22.50 (FERS 1%); $24 (FERS 1.1%); $45 (CSRS)

B. $3,000 (FERS 1%); $3,291 (FERS 1.1%); $5,901 (CSRS)

C. $772 (FERS 1%); $849.75 (FERS 1.1%); $1,545 (CSRS)


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How much will your annual retirement increase if you work three more years and your high-three average salary of $75,000 increases to $77,250?

A. $22.50 (FERS 1%); $24 (FERS 1.1%); $45 (CSRS)

B. $3,000 (FERS 1%); $3,291 (FERS 1.1%); $5,901 (CSRS)

C. $772 (FERS 1%); $849.75 (FERS 1.1%); $1,545 (CSRS)



Set final current career goals

•Promotion/Step Increase

•Discuss plans with supervisor

•Consider re-employment opportunities

•Make plans to have lunch with your co-workers after you retire!

Tie Up Loose Ends


Tie Up Loose Ends

Benefit Considerations Unpaid Deposits

• Civilian service

• Military service

FERCCA (Federal Erroneous Retirement Coverage Corrections Act)

Former Spouse • Court Order Acceptable for Processing (COAP)

Thrift Savings Plan • Catch Up TSP Contributions

• Rebalance TSP / Consider L Funds

• Pay off TSP Loan

• Consider In-Service Withdrawal (59½)

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What is the primary reason for retiring at the end of the year?

A. Lower taxable income the following year

B. Maximize lump sum annual leave payment

C. Take advantage of the new pay rate

D. Retiree cost-of-living adjustment

E. It’s a good time to move to Florida


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What is the primary reason for retiring at the end of the year?

A. Lower taxable income the following year

B. Maximize lump sum annual leave payment

C. Take advantage of the new pay rate

D. Retiree cost-of-living adjustment

E. It’s a good time to move to Florida


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Save annual leave for lump sum payout

Plan “use or lose” sick leave

Gather documents •Retirement application

•Marriage certificate

•Divorce decree

•Military records

•Deposit records

•Proof of coverage under TRICARE or federal spouse

• End of the

month?

• 1st, 2nd, 3rd of the

month?

• End of the year?


Set the Date


Transfer to IRA

Maintain TSP •Simplicity

•Low cost

•Future flexibility

Monthly payment options •Dollar amount

•Life expectancy

•Life annuity

Consider TSP Withdrawal Options

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What is employing agency role in your retirement processing?

A. Obtain retirement records from other agencies, authorizes annuity payments, determines eligibility for insurance

B. Complete your summary of federal service, verify missing service, transfer your insurance to OPM

C. Complete final computation of your annuity, coordinate your Social Security application and TSP withdrawal


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What is employing agency role in your retirement processing?

A. Obtain retirement records from other agencies, authorizes annuity payments, determines eligibility for insurance

B. Complete your summary of federal service, verify missing service, transfer your insurance to OPM

C. Complete final computation of your annuity, coordinate your Social Security application and TSP withdrawal


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The Process

Gather forms •Submit CSRS or FERS application 30-90 days ahead of

retirement date

•Elect continuation of life insurance (FEGLI)

File for Social Security three months before 1st payment

File for TSP 30 days after retirement

Keep copies of everything


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The Process

Over 65? • Consider FEHB options • Medicare Part B (and Part A)

Retired military? • TRICARE For Life • Waive military retirement if combining with CSRS or FERS

Voluntary Contributions (CSRS)? • Convert to annuity • Withdraw from account and reinvest

Divorced? • COAP (Court Order Acceptable for Processing)


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https://www.youtube.com/watch?v=_h76UJ9I7YM Medicare Part B and FEHB Time: 4:21


https://www.youtube.com/watch?v=_h76UJ9I7YM

https://www.youtube.com/watch?v=_h76UJ9I7YM

5-Year Countdown to Retirement€¦ · 5-Year Countdown to Retirement National Active and Retired...

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Transcript of 5-Year Countdown to Retirement€¦ · 5-Year Countdown to Retirement National Active and Retired...