If your first plan is not working out, you need to have a backup plan. Image: Kristi Blokhin/Shutterstock.com
This year there will be well over 100,000 Federal Employees taking retirement from the various Deferred Retirement Buyout Programs. There will be many other federal employees who were planning to retire this year.
Before you start filling out your retirement paperwork and planning your retirement party. What is your Plan? Have you thought through your finances and your future day to day activities – how well have you prepared?
Retirement is more than just thinking about your finances. There are many emotional life decisions to make which are not easy to deal with.
A client and a friend said to me prior to retirement that he was going to lose his identity as a federal prosecutor. I told him that he was going to create a new identity for himself in retirement. One that is different and totally satisfying.
Here are the major issues to consider prior to retirement and you may need help to navigate through some or many of these topics.
1. Will you have a sufficient retirement income stream for retirement?
2. Do you plan on working full time or part-time in retirement?
3. Will you take Social Security Early or Defer it?
4. How much will you be drawing from your Thrift Savings Plan?
5. Do you have a plan to down size your home, remodel your home or buy a vacation home? How will you be funding these plans?
6. Do you have a budget to handle your travel and entertainment expenses?
7. Have you considered, estate planning and who can you trust to make those life decisions as you age?
I keep in touch with many former federal co-workers and clients. It is interesting to hear how their initial retirement plans have changed and they have a different outlook on life and what is important to them.
Retirement can be both fun and frustrating. Yes both. You have a bucket list of things you want to do and you have a list of fun activities such as golf and pickle ball that you want to explore and occupy your time with. Many times, you accomplish that bucket list in your first year. Also, many of your friends maybe still working so finding new friends to occupy your time with playing pickle ball or traveling with can be a challenge. After a few years, you find yourself, tired of traveling, organizing your home and boredom starts to sink in. Many people start volunteering and get involved in some community activities with local organizations or their church.
After my federal career, I moved to a retirement community. I have many new friends and activities to occupy my time with. But leaving behind many old friends and favorite entertainment venues were a struggle for me. Many issues, such as finding quality health care providers, auto repair mechanics and other personal care services can take a long time to figure out. Many of my neighbors, have moved back to their old neighborhoods.
The key is that if your first plan is not working out, you need to have a backup plan. You need to be able to pivot and adjust. Discuss your plans with your spouse and being on the same page is important. My parents discussed everything and planned all their activities in harmony. They never squabbled about the little things in retirement.
Proper Planning Prevents Poor Performance.
Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor. Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 80 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
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