If you are ready to retire from your federal career, congratulations!
You’re probably looking forward to taking time off to do something new. But making sure you have the resources available to support those new things means you need to be prepared for retirement.
Preparing for retirement is more than just having enough money stashed away, though it’s important. As a female federal employee, now is the time to focus on planning for nearing retirement. By doing so, you will have the support to enjoy life after your career.
Maximize your TSP/IRA contributions
You may have taken time off to support your family or care for an elderly relative. As a result, you will no longer be able to contribute to the Thrift Savings Plan (TSP), which is part of your overall Federal Employee Retirement System (FERS) benefits. This means your financial base is not very large.
As women in the federal government, it’s time to focus on contributing to TSP. If you have an Individual Retirement Account (IRA), you should also increase your contributions to it.
Another step is to partner with a federally focused Certified Financial Planner™ like Serving People Who Serve. This professional can tell you how much to increase your contributions, direct you to asset allocation for ideal growth, and advise you on retirement living costs and other issues.
Considering post-retirement medical options
Statistics from the U.S. Centers for Disease Control and Prevention show that women continue to live longer than men. Additionally, during their long lifespans, they can suffer from additional health-related problems such as colds, hearing problems, and hip replacements. Additionally, there are chronic health issues such as diabetes, heart disease, and high cholesterol.
Good news. One of the perks of a career in the federal government is health insurance through the Federal Employee Health Benefits (FEHB). Even better news is that in many cases, you can keep your FEHB benefits into retirement. Many federal employees enroll in FEHB and Medicare to increase coverage and reduce out-of-pocket costs.
But which plan is best for your retirement? Check out the Consumer’s Checkbook for answers. This online resource explains more about FEHB and Medicare plans and helps you calculate your potential medical costs. Consumer’s Checkbook membership is an affordable tool. Use code stwserve to save an additional 20%.
Long-term care insurance: is it worth it?
Another retirement question concerns long-term care insurance. Such coverage is useful for covering costs that Medicare and FEHB do not cover, such as assisted living centers and home health assistance.
The average premium for a $165,000 policy is $950 per year. However, other factors also affect premium costs. Costs may vary depending on your state of residence. Also, the older you get, the higher your insurance premiums will be. Additionally, some long-term insurance companies may not issue you coverage if you have recently been diagnosed with heart disease or cancer. Alternatively, you can buy that insurance (at a higher premium), but it may not cover the care you need for your particular illness.
Long-term care insurance may be enough to fill the gap in medical costs. However, it is important to look at available insurance and its prices to determine whether such a transition is cost-effective.
