[1]Updated 1-28-2024
Retirement is more of a destination unlike a planned vacation where you return to work a few days after the trip is over. Whether you are going on vacation or planning your retirement you have to research and prepare to make the event truly remarkable.
Carole, one of our newsletter subscribers, asked if I had any suggestions on what she should be looking at to plan her retirement. There are many things to consider and I sent her a list of articles and resources that will take her step-by-step through the process. If you are considering retiring it is never too early to start planning your exit, the more time you put into the effort the better off you will be when you walk out the door.
I expanded the list I sent Carole and it should help anyone planning their retirement to understand their options and the path forward. Please forward this to anyone in your organization that is at or approaching retirement age, it can help them avoid delays and problems that can be encountered when preparing for retirement. You can also download this guide [2]in PDF format to add to your desktop and also forward to others in your organization.
NOTE: A number of federal agencies disable links that arrive in email messages. You will find this article in PDF format and online on our blog at www.fedretire.net [3], the links will be active there.
Retirement Planning:
- How to be Emotionally and Physically Prepared When You Retire [4]
- Am I Eligible to Retire? [5]
- Caution – Do This Before You Retire [6]
A Year or More Before Leaving
- What Should I be Doing the Year Before I Retire [7]
- Suggestion: Keep a copy of your last Leave & Earnings Statement (LES) with your retirement paperwork. This form will have your military credits if warranted and other valuable information that you may need down the road.
- The Best Day to retire [8] – Select several potential retirement dates.
- Request annuity estimates from your HR office for the dates selected.
- How is My Annuity Calculated [9]
- Annuity Projection Calculator [10] – This spreadsheet accurately determines your projected monthly and annual annuity, based on a selected growth rate, with and without survivor benefit for forty years and your projected survivor’s annual and monthly annuity.
- Download our Leave & Schedule Excel Chart [11]. These FREE updated chart tracks all leave balances. Place this chart on your desktop to track your work schedule and all leave balances. They are helpful when selecting target retirement dates and to build your sick leave and annual leave balance that you can cash in when you retire.
- Looking at the Numbers – The Second Time Around [12] – Financial Review
- Complete a Budget Worksheet [13] – This exercise will reveal your pre and post retirement total income and expenses.
- How to be Financially Prepared When You Retire [14] – Report
- TSP Considerations [15]
- The TSP Advantage (Should I Stay or Go) [16]
- FEGLI insurance – What options to carry into retirement.
- Evaluate Your Insurance Needs [17] – An Insurance Checkup
- Determine What FEGLI Options to Carry into Retirement [18] (Part 1)
- What You Need to Know About Parts A, B and C coverage [19] (Part 2)
- Complete OPM’s SF-2818 Continuation of Insurance form [20], submit with your retirement package.
- Life Event Changes that Allow Employees to Make FEGLI Coverage Changes [21] (Part 3)
- Health Care Consideration – Federal Employees Healthcare Benefits (FEHB)
- General Guidance [22]
- 2024 FEHB Selection Guide [23]
- Qualifying Life Events [24] – If you plan to relocate when you retire, you have 60 days to change your FEHB coverage after a move. There are many other life events that permit changes including: divorce, marriage, when you reach age 65, and death of the annuitant or spouse.
- Retirement Applications – Download the application at least 6 months before your departure date and prepare a draft, follow the instructions noted on the forms. As you fill out the application, questions will arise. The earlier you prepare the draft the more time you will have to get the answers you need to make informed decisions about your benefits. You will also need to submit a SF-2818 Continuation of Insurance Form [20] with your application. The instructions are comprehensive, many of your questions will be answered in the form instructions. Keep a copy of the application you submit for future reference. Submit your application at least three months in advance of your targeted retirement date if possible. This gives HR sufficient time to confirm your creditable service and process it locally before sending it off to OPM.
- FERS Application [25] Form SF-3107 (Revision June 2013, previous editions aren’t usable)
- CSRS Application [25] Form SF-2801 (Revision May 2014)
- Veterans (Military Credit) – It can take up to a year to process your military credits and the military payroll offices often are slow to respond. The rules are different for CSRS and FERS employees and you should understand the impact on your annuity. FERS employees must make a military deposit to receive credit for military years served when they retire.If you are approaching retirement, and you bought back your military time, confirm that your Leave and Earnings Statement (LES) lists the payback amount on your biweekly statements. Some federal employees have problems with confirming payback when retiring and it is important to keep all records of your payments and check with your personnel office to ensure this information is in your OPF or eOPF prior to retiring.
Medicare – What to do when you turn 65
If you are retired and receiving Social Security you will automatically be enrolled in Part A and B and should receive your Medicare card three months before your 65th birthday. If you decide not to take Part B follow the instructions that you receive with your enrollment package. If you aren’t receiving Social Security you have a 7-month Medicare enrollment window that starts 3 months before your birthday. You can sign up online at https://www.socialsecurity.gov/medicare/apply.html [28] or you can visit your local Social Security Office to apply. Call 1-800-772-1213 for additional information and assistance. You can also sign up for Medicare at https://www.medicare.gov [29] under the “New to Medicare” section. It takes about 15 minutes to register and sign up online.
If you are retired but covered under a working spouse’s medical plan or you are still working, sign up for Part A, and then advise them that you do not want part B because you are covered by your employer or under a working spouse plan as the case may be. All current federal employees and those retirees with new employer health care coverage or are covered under their spouse can elect this when they turn 65 to delay Part B without penalty until their working spouse retires, or they leave federal service, or their new employer.
- Should I enroll in Medicare [30]
- Medicare and FEHB Options – What Will You Do When You Turn 65? [32](Part 1)
- A Marriage of Convenience – Medicare & FEHB [33]
- What to Consider Before Enrolling in Medicare B [34] (Part 2)
- Should I Change to a Lower Cost FEHB Plan When I Sign Up for Medicare (Part 3) [35]
- Caution – Don’t Lose Your FEHB Coverage [36]
- Medicare Part B and FEHB Update [37] (Part 4)
- How to Delay Part B Premiums [38]
Retirement Planning Information – Find the retirement planning information you need.
After Retirement – What to expect from OPM.
- What to Expect the First Three Months After Retiring [40]
- Retiree Contact List [41] – Important contact numbers and information. Download a copy and keep it with your retirement paperwork.
Helpful Retirement Planning Tools / Resources
- Retirement Planning Guide [42]
- Social Security Guidance [43] (FERS & CSRS)
- Medicare [31]
- Federal Employee Retirement Benefits Seminars – Check Availability [44]
- Financial Planning Guide [45]
- Master Retiree Contact List [46] (Contact numbers and information)
- 2024 Leave and Schedule Chart [47] (FREE Excel chart tracks all leave balances. Use this chart to set target retirement dates.)
- Annuity Calculator [48](FREE Excel chart estimates annuity growth)
Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy.
The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.
Last 5 posts by Dennis Damp
- Down But Not Out – Imagine if This Was You! [49] - April 12th, 2024
- Is Working in Retirement A Necessity Today? [50] - April 5th, 2024
- Retirement Progression – One Day at a Time to Infinity [51] - March 15th, 2024
- Fixed Income Investment Update – Bonds & More [52] - March 8th, 2024
- Updated Guidance, Clarifications, & Observations [53] - February 23rd, 2024
- Estate Planning Guide Revisited – Setting up Your Plan [54] - February 9th, 2024
- Considering Your Options – Should You Stay the Course? [55] - February 2nd, 2024
- Tax Forms Availability and Annuity Statements [56] - January 26th, 2024
- TSP RMDs & Withdrawals Plus Site Navigation Tips [57] - January 19th, 2024
- Preparing for the New Year - 2024 Updates [58] - January 5th, 2024
- 2023 in the Rear View Mirror – Observations and Updates [59] - December 15th, 2023
- T-Bills, Savings Bonds, and CD Investments in the Spot Light [60] - December 8th, 2023