By: Steven Puckett
As a federal employee, preparing for retirement can feel like navigating a maze. Over the years, I have spoken with countless employees who share the same questions: Where do I begin? What resources should I trust? How do I prepare not only for the moment I retire, but also for the years leading up to and following retirement?
In this article, I want to walk through the key steps of preparing for federal retirement. My goal is not to promise outcomes or create false expectations, but rather to provide a structured way of thinking about your career, your benefits, and the financial resources available to you.
Starting Early: Years Before Retirement
Retirement readiness begins long before you file your paperwork. In fact, some of the best decisions federal employees make occur a decade or more before retirement. By planning ahead, you give yourself the flexibility to make small, consistent adjustments instead of last-minute corrections.
At this stage, education is everything. Resources such as the Federal Employees Retirement System (FERS) handbook, agency human resources materials, and specialized retirement courses can help you understand your benefits. Becoming familiar with terms like your “minimum retirement age,” “high-three average salary,” and “service credit” lays the groundwork for more detailed planning later.
For many employees, the Thrift Savings Plan (TSP) becomes a critical focus. Contributing regularly, understanding investment options, and reviewing asset allocation* are essential parts of preparing. By learning about these options early, you can avoid the stress of hasty decisions as retirement draws near.
Mid-Career Adjustments: Staying on Course
For employees within five to ten years of retirement, attention shifts from learning about the retirement system to applying knowledge directly to personal circumstances.
This is the time to request an official benefits estimate from your agency. These calculations will show you what your pension might look like under different retirement dates. With that information, you can start aligning your goals with realistic timelines.
Health coverage also becomes a more prominent consideration. Staying enrolled in the Federal Employees Health Benefits (FEHB) program for the required five years before retirement ensures that you can carry coverage into retirement. Understanding how Medicare integrates with FEHB later is equally important.
Your TSP balance deserves another close look. For some, this may mean rebalancing** investments to reduce risk as retirement nears. For others, it may involve exploring contribution catch-up provisions that allow you to accelerate savings after age 50.
At the Retirement Threshold
When you are within a year or two of leaving federal service, the focus shifts to execution. This is when details matter most.
Filing retirement paperwork can be complex, and errors may delay benefits. Understanding exactly what forms are required, verifying service history, and confirming unused leave balances are practical steps that prevent administrative setbacks.
Income planning takes center stage. Rather than looking only at the pension amount, consider how all income sources — FERS annuity, Social Security, TSP withdrawals, and outside assets — will fit together. A coordinated approach helps ensure that income is both sufficient and sustainable.
This is also a critical time to revisit healthcare. Decisions about Medicare enrollment and FEHB coordination must be made carefully, as they will influence both costs and coverage quality throughout retirement.
Living in Retirement: The Long View
Planning does not stop once retirement begins. In fact, the transition often brings new financial questions. How much should you withdraw from the TSP each year? Should you choose monthly payments or partial withdrawals? How should you adjust investments once you no longer have a regular paycheck?
Healthcare again plays a central role. Beyond Medicare and FEHB, Tricare for those who qualify from their military service, also has its own considerations. Coordinating benefits across these programs ensures both affordability and adequate protection.
Lifestyle planning also deserves attention. Many retirees underestimate the emotional and social adjustments required after leaving federal service. Just as financial planning helps stabilize your future, preparing for changes in routine, community, and purpose helps create a fulfilling retirement.
Resources for Continued Learning
There is no shortage of information available to federal employees. However, quality varies widely, and not every source is tailored to your unique circumstances. I encourage employees to seek out resources that combine clarity with accuracy.
One example is the Federal Retirement Course, a free online program designed to give employees a structured overview of benefits and planning considerations. While no single resource can answer every personal question, combining reliable education with professional guidance helps federal employees make confident, informed decisions.
Conclusion
Preparing for federal retirement is not a single event but an ongoing process. By starting early, adjusting mid-career, carefully managing the transition, and continuing to plan in retirement, you can approach the future with clarity. The key is not to rush or rely on assumptions, but to take the time to educate yourself, understand your benefits, and make thoughtful decisions.
Watch Podcast: https://youtu.be/TnY5yFT7K8U
Schedule Here: https://stevencalendar.fedsmart.co/
Website: www.stevenpuckett.com
Podcast: www.fedsmartpodcast.com
FedSmith Article:https://www.fedsmith.com/2022/08/29/fers-retirement-eligibility/
Facebook: https://www.facebook.com/FedSmartPodcast
Youtube: https://www.youtube.com/@FedSmartPodcast
LinkedIn: https://www.linkedin.com/in/steven-puckett-b4272545/
* Asset Allocation does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.
**Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.
