How Federal Retirement Decisions Can Fit Together
The scenarios below are hypothetical and educational. They illustrate the kinds of questions and decisions federal employees commonly face — not specific recommendations or expected outcomes.
These hypothetical scenarios are provided solely for educational purposes. They do not represent actual clients, recommendations, guarantees or expected results. Individual circumstances vary. TSP Retirement Review is not affiliated with, endorsed by, or sponsored by the Federal Retirement Thrift Investment Board, the Thrift Savings Plan, the United States Government, or any federal agency.
Five Years From Retirement
The situation
A hypothetical FERS employee in their late 50s is five years from their target retirement date. They have been contributing to the TSP for many years and have a growing balance, but they have not yet estimated what their retirement income will look like. They are unsure whether their pension and Social Security will cover their expected expenses, or how much they will need to draw from the TSP.
The questions involved
- How much monthly income might my FERS pension provide based on my years of service and salary?
- When should I claim Social Security, and how does that timing affect my monthly benefit?
- Is there a gap between my expected income and my expected expenses?
- How much might I need to draw from the TSP each year to cover that gap?
- Am I on track with my TSP contributions for the next five years?
- What decisions do I need to make before I select a retirement date?
Areas reviewed
- Estimated FERS pension based on current service and salary trajectory
- Social Security benefit estimates at different claiming ages
- Retirement income gap analysis using the Federal Retirement Paycheck Calculator
- TSP balance and contribution trajectory
- Healthcare coverage transition from FEHB to Medicare
- Survivor benefit elections and their effect on pension income
Possible next decisions
- Determine a realistic retirement date based on income projections
- Decide whether to increase TSP contributions in the final years of service
- Review and update TSP beneficiary designations
- Evaluate Social Security claiming strategy options
- Consider survivor benefit elections and their trade-offs
Coordinating Retirement as a Couple
The situation
A hypothetical married federal employee is approaching retirement. Their spouse also worked and has their own Social Security benefit, though not a federal pension. Together they have the FERS pension, two Social Security benefits, TSP assets, and some personal savings. They want to understand how these pieces may work together and what decisions they need to make jointly.
The questions involved
- How do two Social Security benefits interact, and does the timing of one affect the other?
- What survivor benefit election should we consider for the FERS pension?
- How will our combined income affect our tax situation in retirement?
- How do we coordinate TSP withdrawals with our other income sources?
- What happens to each income source if one of us passes away first?
- Have we reviewed beneficiary designations on all accounts?
Areas reviewed
- FERS pension survivor benefit options and their cost
- Social Security spousal and survivor benefit rules
- Combined retirement income picture across all sources
- Tax implications of combined income in retirement
- TSP beneficiary designations and estate planning considerations
- Healthcare coverage for both spouses after retirement
Possible next decisions
- Decide on FERS survivor benefit election before retirement
- Develop a Social Security claiming strategy for both spouses
- Review and update beneficiary designations on TSP and other accounts
- Evaluate whether TSP withdrawal timing should be coordinated with Social Security claiming
- Consider the tax implications of combined income and whether any planning steps are appropriate
Evaluating TSP Choices After Retirement
The situation
A hypothetical federal employee retired within the past year. Their FERS pension has begun and they are receiving the FERS Supplement. They have not yet made a decision about their TSP. They are receiving conflicting information about whether to leave the money in the TSP, begin withdrawals, or consider a rollover. They want to understand the considerations without being pushed toward any particular choice.
The questions involved
- What are the actual costs of staying in the TSP versus rolling over to an IRA?
- Do I need investment options beyond what the TSP offers?
- How does the Rule of 55 exception apply to my situation?
- What are the tax implications of different withdrawal approaches?
- When do required minimum distributions begin, and how do I plan for them?
- What happens to my TSP balance if I pass away before withdrawing it?
Areas reviewed
- TSP expense ratios and investment fund options
- IRA investment options and total cost comparison
- Withdrawal flexibility under different approaches
- Tax treatment of TSP distributions versus IRA distributions
- Required minimum distribution rules and timing
- Beneficiary and estate planning considerations
Possible next decisions
- Compare total costs of staying in the TSP versus any specific rollover option being considered
- Determine whether investment options beyond the TSP are genuinely needed
- Review TSP beneficiary designation
- Understand when RMDs will begin and how to plan for them
- Decide whether to begin TSP distributions now or delay
Discuss your own retirement picture.
Every federal employee's situation is different. A complimentary TSP Retirement Review is a focused conversation about the questions and decisions that apply to you.
Schedule Your Complimentary TSP Retirement ReviewMeet with Johnathan Adler, LTCP, for a complimentary 30-minute conversation. There is no obligation, no requirement to move your TSP and no expectation that you purchase a financial product. Spouses and partners are welcome.