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  14. <description>Federal benefits, made simple</description>
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  31. <title>FERS Annuity Survivor Benefits: What They Are and Why You Can’t Afford to Ignore Them</title>
  32. <link>https://gofebra.com/fers-annuity-survivor-benefits-what-they-are-and-why-you-cant-afford-to-ignore-them/</link>
  33. <comments>https://gofebra.com/fers-annuity-survivor-benefits-what-they-are-and-why-you-cant-afford-to-ignore-them/#respond</comments>
  35. <dc:creator><![CDATA[admin]]></dc:creator>
  36. <pubDate>Thu, 12 Jun 2025 05:46:44 +0000</pubDate>
  37. <category><![CDATA[News]]></category>
  38. <guid isPermaLink="false">https://gofebra.com/?p=3942</guid>
  39.  
  40. <description><![CDATA[FERS annuity survivor benefits are one of the most important—and often misunderstood—components of your federal retirement package. They determine what happens to your pension after you pass away, and the decisions you make at retirement can permanently affect your spouse or loved ones’ financial security. In this article, we’ll explore how these benefits work, who [&#8230;]]]></description>
  41. <content:encoded><![CDATA[<p data-start="89" data-end="532">FERS annuity survivor benefits are one of the most important—and often misunderstood—components of your federal retirement package. They determine what happens to your pension after you pass away, and the decisions you make at retirement can permanently affect your spouse or loved ones’ financial security. In this article, we’ll explore how these benefits work, who they protect, and why they matter more than most federal employees realize.</p>
  42. <hr data-start="534" data-end="537" />
  43. <h2 data-start="539" data-end="582">What Are FERS Annuity Survivor Benefits?</h2>
  44. <p data-start="584" data-end="1228">FERS annuity survivor benefits provide continuing income to your spouse or designated survivor after your death. When you retire under the Federal Employees Retirement System (FERS), you have the option to elect a survivor benefit. This election reduces your monthly annuity, but in return, your spouse receives a portion of your pension for life if you pass away. The Office of Personnel Management (OPM) administers these benefits to ensure your family isn&#8217;t left financially vulnerable. You can learn more about the FERS system and how it integrates with survivor planning on our <a class="" href="https://gofebra.com/fers-retirement/" target="_new" rel="noopener" data-start="1167" data-end="1227">FERS retirement page</a>.</p>
  45. <hr data-start="1230" data-end="1233" />
  46. <h2 data-start="1235" data-end="1283">Why Are FERS Survivor Elections So Important?</h2>
  47. <p data-start="1285" data-end="1938">Making the right survivor election is critical because it impacts your family’s long-term financial well-being. If you die without having elected a survivor benefit, your spouse may lose access not only to your pension but also to <strong data-start="1516" data-end="1560">FEHB (Federal Employees Health Benefits)</strong>. That’s right—FEHB eligibility in retirement is often tied to the survivor annuity. This makes the FERS annuity survivor benefits one of the most far-reaching decisions you’ll make at retirement. For guidance on how insurance and benefits continue after retirement, visit our <a class="" href="https://gofebra.com/insurance-and-supplimental-benefits/" target="_new" rel="noopener" data-start="1837" data-end="1932">insurance and supplemental benefits</a> page.</p>
  48. <hr data-start="1940" data-end="1943" />
  49. <h2 data-start="1945" data-end="2003">What Survivor Benefit Options Are Available Under FERS?</h2>
  50. <p data-start="2005" data-end="2069">FERS offers three main survivor benefit options when you retire:</p>
  51. <div class="_tableContainer_16hzy_1">
  52. <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1">
  53. <table class="w-fit min-w-(--thread-content-width)" data-start="2071" data-end="2718">
  54. <thead data-start="2071" data-end="2199">
  55. <tr data-start="2071" data-end="2199">
  56. <th data-start="2071" data-end="2095" data-col-size="sm">Option</th>
  57. <th data-start="2095" data-end="2158" data-col-size="md">Description</th>
  58. <th data-start="2158" data-end="2178" data-col-size="sm">Annuity Reduction</th>
  59. <th data-start="2178" data-end="2199" data-col-size="sm">Survivor Receives</th>
  60. </tr>
  61. </thead>
  62. <tbody data-start="2330" data-end="2718">
  63. <tr data-start="2330" data-end="2459">
  64. <td data-start="2330" data-end="2354" data-col-size="sm"><strong data-start="2332" data-end="2349">Full Survivor</strong></td>
  65. <td data-col-size="md" data-start="2354" data-end="2417">50% of your annuity paid to your spouse after your death</td>
  66. <td data-col-size="sm" data-start="2417" data-end="2437">~10%</td>
  67. <td data-col-size="sm" data-start="2437" data-end="2459">50% of your annuity</td>
  68. </tr>
  69. <tr data-start="2460" data-end="2589">
  70. <td data-start="2460" data-end="2484" data-col-size="sm"><strong data-start="2462" data-end="2482">Partial Survivor</strong></td>
  71. <td data-col-size="md" data-start="2484" data-end="2547">25% of your annuity paid to your spouse</td>
  72. <td data-col-size="sm" data-start="2547" data-end="2567">~5%</td>
  73. <td data-col-size="sm" data-start="2567" data-end="2589">25% of your annuity</td>
  74. </tr>
  75. <tr data-start="2590" data-end="2718">
  76. <td data-start="2590" data-end="2616" data-col-size="sm"><strong data-start="2592" data-end="2615">No Survivor Benefit</strong></td>
  77. <td data-col-size="md" data-start="2616" data-end="2676">No benefit to your spouse after death</td>
  78. <td data-col-size="sm" data-start="2676" data-end="2696">0%</td>
  79. <td data-col-size="sm" data-start="2696" data-end="2718">$0</td>
  80. </tr>
  81. </tbody>
  82. </table>
  83. <div class="sticky end-(--thread-content-margin) h-0 self-end select-none">
  84. <div class="absolute end-0 flex items-end"></div>
  85. </div>
  86. </div>
  87. </div>
  88. <p data-start="2720" data-end="2950">Choosing the right option involves balancing your retirement income needs with your spouse’s future security. A full survivor annuity costs more monthly but provides peace of mind that your loved one will be financially protected.</p>
  89. <hr data-start="2952" data-end="2955" />
  90. <h2 data-start="2957" data-end="3015">Can You Change Your Survivor Election After Retirement?</h2>
  91. <p data-start="3017" data-end="3130">In most cases, your survivor election is <strong data-start="3058" data-end="3092">final once your annuity begins</strong>. However, there are a few exceptions:</p>
  92. <ul data-start="3132" data-end="3477">
  93. <li data-start="3132" data-end="3259">
  94. <p data-start="3134" data-end="3259">If you were <strong data-start="3146" data-end="3175">not married at retirement</strong> but later marry, you can elect a survivor annuity within <strong data-start="3233" data-end="3246">two years</strong> of marriage.</p>
  95. </li>
  96. <li data-start="3260" data-end="3359">
  97. <p data-start="3262" data-end="3359">If you <strong data-start="3269" data-end="3280">divorce</strong>, a court order related to the divorce settlement may affect survivor benefits.</p>
  98. </li>
  99. <li data-start="3360" data-end="3477">
  100. <p data-start="3362" data-end="3477"><strong data-start="3362" data-end="3379">Reinstatement</strong> is sometimes possible with a signed agreement and actuarial adjustment, but these cases are rare.</p>
  101. </li>
  102. </ul>
  103. <p data-start="3479" data-end="3691">Because of how permanent the election is, it’s essential to get professional guidance before making your choice. FEBRA’s advisors are here to help—learn more on our <a class="" href="https://gofebra.com/about-us/" target="_new" rel="noopener" data-start="3644" data-end="3690">About Us page</a>.</p>
  104. <hr data-start="3693" data-end="3696" />
  105. <h2 data-start="3698" data-end="3756">What Happens to FEHB If No Survivor Benefit Is Elected?</h2>
  106. <p data-start="3758" data-end="4134">Many federal retirees don’t realize that electing a <strong data-start="3810" data-end="3835">FERS survivor annuity</strong> is often a <strong data-start="3847" data-end="3862">requirement</strong> for your spouse to <strong data-start="3882" data-end="3899">maintain FEHB</strong> coverage after your death. If no survivor annuity is elected, FEHB coverage typically ends upon your death, even if you carried a family plan for years. This can leave your spouse without affordable health care when they need it most.</p>
  107. <p data-start="4136" data-end="4432">This single consequence makes the survivor benefit election a health care decision as much as a financial one. Be sure to factor FEHB continuation into your retirement plan. For more on retirement and health benefits coordination, visit our <a class="" href="https://gofebra.com/retirement/" target="_new" rel="noopener" data-start="4377" data-end="4431">retirement overview</a>.</p>
  108. <hr data-start="4434" data-end="4437" />
  109. <h2 data-start="4439" data-end="4479">How Is the Survivor Annuity Paid Out?</h2>
  110. <p data-start="4481" data-end="4964">The survivor annuity is paid monthly, directly to your designated beneficiary—typically your spouse. It continues for life and is <strong data-start="4611" data-end="4637">adjusted for inflation</strong> annually via cost-of-living adjustments (COLAs), just like your standard annuity. If you chose the full survivor benefit, your spouse receives 50% of your unreduced annuity. If partial, they receive 25%. Taxes apply to these payments, but the income can be essential in helping a surviving spouse stay financially independent.</p>
  111. <p data-start="4966" data-end="5233">This benefit is separate from <strong data-start="4996" data-end="5033">Social Security survivor benefits</strong>, which may also apply depending on your work record. You can read more about how these layers of protection stack up on <a class="" href="https://en.wikipedia.org/wiki/Federal_Employees_Retirement_System" target="_new" rel="noopener nofollow" data-start="5154" data-end="5232">Wikipedia</a>.</p>
  112. <hr data-start="5235" data-end="5238" />
  113. <h2 data-start="5240" data-end="5315">What About Divorce or Remarriage—How Does That Affect Survivor Benefits?</h2>
  114. <p data-start="5317" data-end="5969">Divorce can complicate survivor annuity elections. In many cases, a <strong data-start="5385" data-end="5400">court order</strong> will mandate that a portion—or all—of the annuity goes to a former spouse. This may limit your ability to elect a new survivor benefit for a future spouse unless you get a legal waiver. Additionally, remarriage after retirement may create eligibility for a new survivor benefit, but you must act within two years to request it. These legal nuances can have long-lasting effects on your retirement plan. If you’ve gone through or are anticipating a divorce, consider consulting a specialist. You can start with a free consultation through <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="5939" data-end="5968">FEBRA</a>.</p>
  115. <p data-start="5317" data-end="5969"><img fetchpriority="high" decoding="async" class="size-full wp-image-3944 aligncenter" src="https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529.jpg" alt="fers annuity survivor benefits" width="1920" height="1280" srcset="https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529.jpg 1920w, https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529-300x200.jpg 300w, https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529-1024x683.jpg 1024w, https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529-768x512.jpg 768w, https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529-1536x1024.jpg 1536w, https://gofebra.com/wp-content/uploads/2025/05/pexels-mart-production-7329529-600x400.jpg 600w" sizes="(max-width: 1920px) 100vw, 1920px" /></p>
  116. <hr data-start="5971" data-end="5974" />
  117. <h2 data-start="5976" data-end="6034">What Happens to the Benefit If the Survivor Dies First?</h2>
  118. <p data-start="6036" data-end="6510">If your elected survivor predeceases you, the reduction to your annuity generally <strong data-start="6118" data-end="6139">remains in effect</strong> unless you notify OPM and request to <strong data-start="6177" data-end="6206">restore your full annuity</strong>. This isn’t automatic—you must submit paperwork to stop the deduction. The good news is that the restoration can increase your monthly pension, but the process can take some time. It’s important to keep your records current and notify OPM promptly of any changes in marital status or beneficiary status.</p>
  119. <hr data-start="6512" data-end="6515" />
  120. <h2 data-start="6517" data-end="6582">Should You Combine FERS Survivor Benefits with Life Insurance?</h2>
  121. <p data-start="6584" data-end="7206">FERS annuity survivor benefits can be paired with life insurance—such as FEGLI or private term policies—to create a stronger safety net. Life insurance can cover short-term needs (like funeral costs or mortgage payoff), while the survivor annuity offers long-term income. Some federal retirees use life insurance as an alternative if they choose the “no survivor benefit” option, but this comes with risks. Premiums rise with age, and coverage must be in place at the time of death. For help comparing options, visit our <a class="cursor-pointer" target="_new" rel="noopener" data-start="7105" data-end="7205">insurance and supplemental benefits page</a>.</p>
  122. <hr data-start="7208" data-end="7211" />
  123. <h2 data-start="7213" data-end="7270">Where Can You Get Help Planning for Survivor Benefits?</h2>
  124. <p data-start="7272" data-end="7760">Making the right survivor election is about more than just your pension—it’s about protecting your spouse, your legacy, and your peace of mind. At FEBRA, we guide federal employees through every part of their retirement journey, including complex decisions like FERS annuity survivor benefits. Whether you’re approaching retirement or revisiting an old plan, our experts can help you make informed, confident choices. Start planning today with a <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="7718" data-end="7759">free consultation</a>.</p>
  125. ]]></content:encoded>
  127. <wfw:commentRss>https://gofebra.com/fers-annuity-survivor-benefits-what-they-are-and-why-you-cant-afford-to-ignore-them/feed/</wfw:commentRss>
  128. <slash:comments>0</slash:comments>
  131. </item>
  132. <item>
  133. <title>What a Federal Retirement Planner Can Do That an Online Calculator Never Will</title>
  134. <link>https://gofebra.com/what-a-federal-retirement-planner-can-do-that-an-online-calculator-never-will/</link>
  135. <comments>https://gofebra.com/what-a-federal-retirement-planner-can-do-that-an-online-calculator-never-will/#respond</comments>
  137. <dc:creator><![CDATA[admin]]></dc:creator>
  138. <pubDate>Wed, 11 Jun 2025 05:46:27 +0000</pubDate>
  139. <category><![CDATA[News]]></category>
  140. <guid isPermaLink="false">https://gofebra.com/?p=3947</guid>
  141.  
  142. <description><![CDATA[A federal retirement planner provides real-life guidance that goes far beyond what an online calculator can deliver. While retirement tools and estimators can be useful starting points, they rely on static data and generalized assumptions. A planner, on the other hand, customizes your roadmap, accounts for complex life factors, and makes sure you don’t miss [&#8230;]]]></description>
  143. <content:encoded><![CDATA[<p data-start="81" data-end="575">A federal retirement planner provides real-life guidance that goes far beyond what an online calculator can deliver. While retirement tools and estimators can be useful starting points, they rely on static data and generalized assumptions. A planner, on the other hand, customizes your roadmap, accounts for complex life factors, and makes sure you don’t miss a critical benefit. In this article, we’ll explain exactly what a federal retirement planner does—and why their insight is invaluable.</p>
  144. <hr data-start="577" data-end="580" />
  145. <h2 data-start="582" data-end="622">What Is a Federal Retirement Planner?</h2>
  146. <p data-start="624" data-end="1272">A federal retirement planner is a financial professional who specializes in helping U.S. government employees understand, maximize, and coordinate all aspects of their federal retirement benefits. This includes pensions (FERS or CSRS), Social Security, TSP (Thrift Savings Plan), insurance, and survivor benefits. Unlike general financial advisors, these planners understand the specific rules, timelines, and exceptions built into federal systems. At <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="1076" data-end="1105">FEBRA</a>, our retirement planners are trained to work within these federal structures, ensuring each client receives tailored advice that fits their career and personal goals.</p>
  147. <hr data-start="1274" data-end="1277" />
  148. <h2 data-start="1279" data-end="1346">How Is a Planner Different from an Online Retirement Calculator?</h2>
  149. <p data-start="1348" data-end="1547">Online calculators are designed to estimate future retirement income based on a limited set of inputs. They may ask for your salary, years of service, and desired retirement age. However, they can’t:</p>
  150. <ul data-start="1549" data-end="1830">
  151. <li data-start="1549" data-end="1652">
  152. <p data-start="1551" data-end="1652">Adjust for unique circumstances like military service, temporary breaks in service, or part-time work</p>
  153. </li>
  154. <li data-start="1653" data-end="1746">
  155. <p data-start="1655" data-end="1746">Factor in cost-of-living adjustments (COLAs), annuity reductions, or FEHB eligibility rules</p>
  156. </li>
  157. <li data-start="1747" data-end="1830">
  158. <p data-start="1749" data-end="1830">Account for marital status changes or divorce decrees affecting survivor benefits</p>
  159. </li>
  160. </ul>
  161. <p data-start="1832" data-end="2094">A federal retirement planner considers all of these nuances. They ask questions calculators don’t and offer strategy—not just numbers. Visit our <a class="" href="https://gofebra.com/retirement/" target="_new" rel="noopener" data-start="1977" data-end="2036">retirement planning page</a> for a deeper look at how we approach customized guidance.</p>
  162. <hr data-start="2096" data-end="2099" />
  163. <h2 data-start="2101" data-end="2167">Why Do Federal Employees Need Personalized Retirement Planning?</h2>
  164. <p data-start="2169" data-end="2282">Federal employees face a unique set of retirement decisions that can have irreversible consequences. For example:</p>
  165. <ul data-start="2284" data-end="2502">
  166. <li data-start="2284" data-end="2348">
  167. <p data-start="2286" data-end="2348">Should you elect a survivor annuity, and if so, at what level?</p>
  168. </li>
  169. <li data-start="2349" data-end="2423">
  170. <p data-start="2351" data-end="2423">What’s the best time to draw Social Security based on your FERS annuity?</p>
  171. </li>
  172. <li data-start="2424" data-end="2502">
  173. <p data-start="2426" data-end="2502">Should you keep your FEGLI coverage in retirement or opt for a private plan?</p>
  174. </li>
  175. </ul>
  176. <p data-start="2504" data-end="2863">These decisions are interconnected. A federal retirement planner helps you weigh the pros and cons based on your goals, income needs, life expectancy, and family structure. No online calculator can simulate that kind of depth. If you&#8217;re not sure whether you&#8217;re under FERS or CSRS, start with our <a class="" href="https://gofebra.com/csrs-information/" target="_new" rel="noopener" data-start="2800" data-end="2862">CSRS information page</a>.</p>
  177. <hr data-start="2865" data-end="2868" />
  178. <h2 data-start="2870" data-end="2919">What Tools Do Federal Retirement Planners Use?</h2>
  179. <p data-start="2921" data-end="3176">While online calculators are based on pre-set formulas, federal retirement planners use <strong data-start="3009" data-end="3047">agency-provided benefit statements</strong>, <strong data-start="3049" data-end="3072">custom spreadsheets</strong>, and <strong data-start="3078" data-end="3110">specialized federal software</strong> that incorporates the latest OPM rules. They also have access to:</p>
  180. <ul data-start="3178" data-end="3320">
  181. <li data-start="3178" data-end="3216">
  182. <p data-start="3180" data-end="3216">FERS and CSRS pension modeling tools</p>
  183. </li>
  184. <li data-start="3217" data-end="3250">
  185. <p data-start="3219" data-end="3250">TSP withdrawal simulation tools</p>
  186. </li>
  187. <li data-start="3251" data-end="3290">
  188. <p data-start="3253" data-end="3290">Medicare and FEHB coordination guides</p>
  189. </li>
  190. <li data-start="3291" data-end="3320">
  191. <p data-start="3293" data-end="3320">IRS tax projection software</p>
  192. </li>
  193. </ul>
  194. <p data-start="3322" data-end="3448">More importantly, they interpret these tools in context—helping you make decisions today that benefit you for decades to come.</p>
  195. <hr data-start="3450" data-end="3453" />
  196. <h2 data-start="3455" data-end="3523">Can a Planner Help You Coordinate FERS, TSP, and Social Security?</h2>
  197. <p data-start="3525" data-end="3656">Absolutely. One of the most valuable roles of a federal retirement planner is to create a retirement income strategy that balances:</p>
  198. <ul data-start="3658" data-end="3774">
  199. <li data-start="3658" data-end="3681">
  200. <p data-start="3660" data-end="3681"><strong data-start="3660" data-end="3681">Your FERS pension</strong></p>
  201. </li>
  202. <li data-start="3682" data-end="3726">
  203. <p data-start="3684" data-end="3726"><strong data-start="3684" data-end="3726">Social Security timing and eligibility</strong></p>
  204. </li>
  205. <li data-start="3727" data-end="3774">
  206. <p data-start="3729" data-end="3774"><strong data-start="3729" data-end="3774">TSP withdrawals and investment allocation</strong></p>
  207. </li>
  208. </ul>
  209. <p data-start="3776" data-end="4156">Many federal employees don’t know how to create a “retirement paycheck” that draws from all three sources in the most tax-efficient way. A planner helps you structure distributions, manage taxes, and avoid penalties. If you’re still building your TSP, check out our <a class="" href="https://gofebra.com/thrift-savings-plan/" target="_new" rel="noopener" data-start="4042" data-end="4111">Thrift Savings Plan guide</a> to better understand its role in retirement.</p>
  210. <hr data-start="4158" data-end="4161" />
  211. <h2 data-start="4163" data-end="4213">How Do Life Changes Affect Retirement Planning?</h2>
  212. <p data-start="4215" data-end="4827">Online calculators don’t adjust for life changes—but a federal retirement planner does. Marriage, divorce, the birth of a child, health concerns, or an unexpected career shift all influence your retirement path. A planner will revisit your strategy whenever needed, helping you pivot in response to life’s unpredictability. This flexibility is essential, especially when it comes to maintaining insurance coverage or reevaluating your survivor benefits. For example, you may need to revisit <a class="" href="https://gofebra.com/insurance-and-supplimental-benefits/" target="_new" rel="noopener" data-start="4706" data-end="4801">insurance and supplemental benefits</a> after a major life event.</p>
  213. <hr data-start="4829" data-end="4832" />
  214. <h2 data-start="4834" data-end="4886">How Can a Planner Help You Avoid Costly Mistakes?</h2>
  215. <p data-start="4888" data-end="4982">Many retirees don’t realize they’ve made a mistake until it’s too late. Common errors include:</p>
  216. <ul data-start="4984" data-end="5231">
  217. <li data-start="4984" data-end="5037">
  218. <p data-start="4986" data-end="5037">Failing to meet the five-year FEHB eligibility rule</p>
  219. </li>
  220. <li data-start="5038" data-end="5090">
  221. <p data-start="5040" data-end="5090">Underestimating tax liability from TSP withdrawals</p>
  222. </li>
  223. <li data-start="5091" data-end="5159">
  224. <p data-start="5093" data-end="5159">Forgetting to elect a survivor benefit, leaving a spouse uninsured</p>
  225. </li>
  226. <li data-start="5160" data-end="5231">
  227. <p data-start="5162" data-end="5231">Retiring too early and forfeiting the FERS Social Security supplement</p>
  228. </li>
  229. </ul>
  230. <p data-start="5233" data-end="5430">A federal retirement planner spots these risks early and helps you make decisions with confidence. The cost of a mistake can be measured in thousands of dollars—or years of lost coverage or income.</p>
  231. <p data-start="5233" data-end="5430"><img decoding="async" class="size-full wp-image-3949 aligncenter" src="https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299.jpg" alt="federal retirement planner" width="1280" height="854" srcset="https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299.jpg 1280w, https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299-300x200.jpg 300w, https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299-1024x683.jpg 1024w, https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299-768x512.jpg 768w, https://gofebra.com/wp-content/uploads/2025/05/pexels-kampus-6762299-600x400.jpg 600w" sizes="(max-width: 1280px) 100vw, 1280px" /></p>
  232. <hr data-start="5432" data-end="5435" />
  233. <h2 data-start="5437" data-end="5507">Can You Still Benefit from a Planner If You’re Close to Retirement?</h2>
  234. <p data-start="5509" data-end="5697">Yes. Even if you’re within a year of retiring, it’s not too late to work with a federal retirement planner. In fact, this is often when their guidance becomes most valuable. A planner can:</p>
  235. <ul data-start="5699" data-end="5937">
  236. <li data-start="5699" data-end="5751">
  237. <p data-start="5701" data-end="5751">Confirm your eligibility and ideal retirement date</p>
  238. </li>
  239. <li data-start="5752" data-end="5805">
  240. <p data-start="5754" data-end="5805">Review your pension estimate and high-3 calculation</p>
  241. </li>
  242. <li data-start="5806" data-end="5850">
  243. <p data-start="5808" data-end="5850">Assist with completing OPM forms correctly</p>
  244. </li>
  245. <li data-start="5851" data-end="5937">
  246. <p data-start="5853" data-end="5937">Help you make time-sensitive decisions like TSP withdrawal setup or FEGLI reductions</p>
  247. </li>
  248. </ul>
  249. <p data-start="5939" data-end="6134">The final year of service is when all your planning becomes real—don’t go it alone. Learn more about last-minute planning through our <a class="" href="https://gofebra.com/fers-retirement/" target="_new" rel="noopener" data-start="6073" data-end="6133">FERS retirement page</a>.</p>
  250. <hr data-start="6136" data-end="6139" />
  251. <h2 data-start="6141" data-end="6206">What Questions Should You Ask Your Federal Retirement Planner?</h2>
  252. <p data-start="6208" data-end="6348">A good retirement planner will answer your questions—but a great one will also ask the right ones. When choosing a planner, consider asking:</p>
  253. <ul data-start="6350" data-end="6600">
  254. <li data-start="6350" data-end="6423">
  255. <p data-start="6352" data-end="6423">How do you help federal employees coordinate all three benefit streams?</p>
  256. </li>
  257. <li data-start="6424" data-end="6477">
  258. <p data-start="6426" data-end="6477">Can you walk me through survivor benefit scenarios?</p>
  259. </li>
  260. <li data-start="6478" data-end="6532">
  261. <p data-start="6480" data-end="6532">How will my FEHB and Medicare interact after age 65?</p>
  262. </li>
  263. <li data-start="6533" data-end="6600">
  264. <p data-start="6535" data-end="6600">What strategies do you recommend for minimizing retirement taxes?</p>
  265. </li>
  266. </ul>
  267. <p data-start="6602" data-end="6800">These conversations lead to strategies that a calculator could never provide. For more on how we support clients with personalized advice, explore our <a class="" href="https://gofebra.com/about-us/" target="_new" rel="noopener" data-start="6753" data-end="6799">About Us page</a>.</p>
  268. <hr data-start="6802" data-end="6805" />
  269. <h2 data-start="6807" data-end="6866">Where Can You Find a Trusted Federal Retirement Planner?</h2>
  270. <p data-start="6868" data-end="7337">Not all financial advisors understand the complexities of federal retirement systems. That’s why it’s important to work with specialists. At <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="7009" data-end="7038">FEBRA</a>, our planners are trained specifically in federal benefits and work with thousands of employees across the country every year. We take a holistic approach—reviewing everything from TSP to FEHB to FEGLI—so you can retire with clarity and peace of mind. And the best part? Our consultations are free.</p>
  271. ]]></content:encoded>
  273. <wfw:commentRss>https://gofebra.com/what-a-federal-retirement-planner-can-do-that-an-online-calculator-never-will/feed/</wfw:commentRss>
  274. <slash:comments>0</slash:comments>
  277. </item>
  278. <item>
  279. <title>TSP Roth Calculator: What It Can (and Can’t) Tell You About Your Retirement Future</title>
  280. <link>https://gofebra.com/tsp-roth-calculator-what-it-can-and-cant-tell-you-about-your-retirement-future/</link>
  281. <comments>https://gofebra.com/tsp-roth-calculator-what-it-can-and-cant-tell-you-about-your-retirement-future/#respond</comments>
  283. <dc:creator><![CDATA[admin]]></dc:creator>
  284. <pubDate>Tue, 10 Jun 2025 05:46:12 +0000</pubDate>
  285. <category><![CDATA[News]]></category>
  286. <guid isPermaLink="false">https://gofebra.com/?p=3952</guid>
  287.  
  288. <description><![CDATA[The TSP Roth calculator is a powerful tool for federal employees looking to forecast their retirement savings, especially if they’re considering tax-free withdrawals in retirement. But like any tool, it has limitations. While it can provide a solid projection of Roth Thrift Savings Plan (TSP) growth, it doesn’t replace the strategic guidance of a human [&#8230;]]]></description>
  289. <content:encoded><![CDATA[<p data-start="86" data-end="566">The TSP Roth calculator is a powerful tool for federal employees looking to forecast their retirement savings, especially if they’re considering tax-free withdrawals in retirement. But like any tool, it has limitations. While it can provide a solid projection of Roth Thrift Savings Plan (TSP) growth, it doesn’t replace the strategic guidance of a human expert. This article breaks down what the tsp roth calculator can—and can’t—do to help you make smarter retirement decisions.</p>
  290. <hr data-start="568" data-end="571" />
  291. <h2 data-start="573" data-end="634">What Is the TSP Roth Calculator and Why Should You Use It?</h2>
  292. <p data-start="636" data-end="1394">The tsp roth calculator is an online tool designed to help federal employees estimate the future value of their Roth TSP contributions. Unlike traditional TSP contributions, which are made pre-tax, Roth contributions are made after-tax—meaning your withdrawals in retirement may be <strong data-start="918" data-end="941">completely tax-free</strong> if certain conditions are met. The calculator allows you to input variables such as salary, contribution percentage, investment allocation, and retirement age to model the long-term impact of contributing to the Roth TSP. It’s a great starting point for evaluating whether this savings route fits your financial goals. For an overview of Roth and Traditional TSP options, visit our <a class="" href="https://gofebra.com/thrift-savings-plan/" target="_new" rel="noopener" data-start="1324" data-end="1393">Thrift Savings Plan guide</a>.</p>
  293. <hr data-start="1396" data-end="1399" />
  294. <h2 data-start="1401" data-end="1446">What Does the Calculator Actually Measure?</h2>
  295. <p data-start="1448" data-end="1775">The tsp roth calculator primarily measures <strong data-start="1491" data-end="1519">projected account growth</strong> based on your current and future contributions, estimated investment returns, and retirement timeline. It shows how much your account could be worth at retirement and allows you to compare Roth vs. Traditional contributions. Key outputs typically include:</p>
  296. <ul data-start="1777" data-end="1928">
  297. <li data-start="1777" data-end="1816">
  298. <p data-start="1779" data-end="1816">Total value of Roth TSP at retirement</p>
  299. </li>
  300. <li data-start="1817" data-end="1855">
  301. <p data-start="1819" data-end="1855">Estimated tax savings or liabilities</p>
  302. </li>
  303. <li data-start="1856" data-end="1896">
  304. <p data-start="1858" data-end="1896">Comparison with Traditional TSP values</p>
  305. </li>
  306. <li data-start="1897" data-end="1928">
  307. <p data-start="1899" data-end="1928">Retirement income projections</p>
  308. </li>
  309. </ul>
  310. <p data-start="1930" data-end="2073">However, it assumes consistent contributions, static rates of return, and doesn’t adjust dynamically for life changes or complex tax scenarios.</p>
  311. <hr data-start="2075" data-end="2078" />
  312. <h2 data-start="2080" data-end="2130">What Are the Assumptions Behind the Calculator?</h2>
  313. <p data-start="2132" data-end="2252">The tsp roth calculator makes several built-in assumptions that may or may not align with your real-world circumstances:</p>
  314. <div class="_tableContainer_16hzy_1">
  315. <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1">
  316. <table class="w-fit min-w-(--thread-content-width)" data-start="2254" data-end="2749">
  317. <thead data-start="2254" data-end="2336">
  318. <tr data-start="2254" data-end="2336">
  319. <th data-start="2254" data-end="2281" data-col-size="sm">Assumption Type</th>
  320. <th data-start="2281" data-end="2336" data-col-size="md">Description</th>
  321. </tr>
  322. </thead>
  323. <tbody data-start="2420" data-end="2749">
  324. <tr data-start="2420" data-end="2501">
  325. <td data-start="2420" data-end="2447" data-col-size="sm">Investment Returns</td>
  326. <td data-col-size="md" data-start="2447" data-end="2501">Assumes average annual return (often user-defined)</td>
  327. </tr>
  328. <tr data-start="2502" data-end="2583">
  329. <td data-start="2502" data-end="2529" data-col-size="sm">Contribution Consistency</td>
  330. <td data-col-size="md" data-start="2529" data-end="2583">Assumes fixed % of pay throughout career</td>
  331. </tr>
  332. <tr data-start="2584" data-end="2666">
  333. <td data-start="2584" data-end="2611" data-col-size="sm">Inflation</td>
  334. <td data-col-size="md" data-start="2611" data-end="2666">Often built in, but may not reflect real COLAs</td>
  335. </tr>
  336. <tr data-start="2667" data-end="2749">
  337. <td data-start="2667" data-end="2694" data-col-size="sm">Tax Brackets</td>
  338. <td data-col-size="md" data-start="2694" data-end="2749">Typically based on current laws</td>
  339. </tr>
  340. </tbody>
  341. </table>
  342. <div class="sticky end-(--thread-content-margin) h-0 self-end select-none">
  343. <div class="absolute end-0 flex items-end"></div>
  344. </div>
  345. </div>
  346. </div>
  347. <p data-start="2751" data-end="2992">These assumptions make the calculator a useful <strong data-start="2798" data-end="2817">projection tool</strong>, but not an all-encompassing retirement strategy. A planner can help refine these estimates based on your career progression, TSP fund choices, and future changes in tax law.</p>
  348. <hr data-start="2994" data-end="2997" />
  349. <h2 data-start="2999" data-end="3045">What the TSP Roth Calculator Can’t Tell You</h2>
  350. <p data-start="3047" data-end="3136">While the tsp roth calculator can give you a sense of how your money will grow, it can’t:</p>
  351. <ul data-start="3138" data-end="3520">
  352. <li data-start="3138" data-end="3199">
  353. <p data-start="3140" data-end="3199">Factor in your <strong data-start="3155" data-end="3183">individual tax situation</strong> in retirement</p>
  354. </li>
  355. <li data-start="3200" data-end="3268">
  356. <p data-start="3202" data-end="3268">Predict changes in <strong data-start="3221" data-end="3233">tax laws</strong> that may impact Roth withdrawals</p>
  357. </li>
  358. <li data-start="3269" data-end="3356">
  359. <p data-start="3271" data-end="3356">Account for <strong data-start="3283" data-end="3324">required minimum distributions (RMDs)</strong> or early withdrawal penalties</p>
  360. </li>
  361. <li data-start="3357" data-end="3442">
  362. <p data-start="3359" data-end="3442">Coordinate your <strong data-start="3375" data-end="3411">TSP with other retirement income</strong> like FERS or Social Security</p>
  363. </li>
  364. <li data-start="3443" data-end="3520">
  365. <p data-start="3445" data-end="3520">Reflect <strong data-start="3453" data-end="3520">spousal benefits, survivor elections, or inheritance strategies</strong></p>
  366. </li>
  367. </ul>
  368. <p data-start="3522" data-end="3748">That’s why it’s important to use the calculator as a starting point—and work with a retirement planner for a full strategy. For personalized help, check out our <a class="" href="https://gofebra.com/retirement/" target="_new" rel="noopener" data-start="3683" data-end="3747">retirement planning resources</a>.</p>
  369. <hr data-start="3750" data-end="3753" />
  370. <h2 data-start="3755" data-end="3812">How Do Roth and Traditional TSP Contributions Compare?</h2>
  371. <p data-start="3814" data-end="3965">One of the biggest questions federal employees have is whether to contribute to the <strong data-start="3898" data-end="3910">Roth TSP</strong> or the <strong data-start="3918" data-end="3937">Traditional TSP</strong>. Here’s a quick comparison:</p>
  372. <div class="_tableContainer_16hzy_1">
  373. <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1">
  374. <table class="w-fit min-w-(--thread-content-width)" data-start="3967" data-end="4566">
  375. <thead data-start="3967" data-end="4066">
  376. <tr data-start="3967" data-end="4066">
  377. <th data-start="3967" data-end="3992" data-col-size="sm">Feature</th>
  378. <th data-start="3992" data-end="4028" data-col-size="sm">Roth TSP</th>
  379. <th data-start="4028" data-end="4066" data-col-size="sm">Traditional TSP</th>
  380. </tr>
  381. </thead>
  382. <tbody data-start="4167" data-end="4566">
  383. <tr data-start="4167" data-end="4266">
  384. <td data-start="4167" data-end="4192" data-col-size="sm">Tax Status</td>
  385. <td data-start="4192" data-end="4228" data-col-size="sm">After-tax contributions</td>
  386. <td data-start="4228" data-end="4266" data-col-size="sm">Pre-tax contributions</td>
  387. </tr>
  388. <tr data-start="4267" data-end="4366">
  389. <td data-start="4267" data-end="4292" data-col-size="sm">Withdrawals</td>
  390. <td data-start="4292" data-end="4328" data-col-size="sm">Tax-free (if qualified)</td>
  391. <td data-start="4328" data-end="4366" data-col-size="sm">Taxed as income</td>
  392. </tr>
  393. <tr data-start="4367" data-end="4466">
  394. <td data-start="4367" data-end="4392" data-col-size="sm">RMDs (after retirement)</td>
  395. <td data-start="4392" data-end="4428" data-col-size="sm">Yes (unless rolled to Roth IRA)</td>
  396. <td data-start="4428" data-end="4466" data-col-size="sm">Yes</td>
  397. </tr>
  398. <tr data-start="4467" data-end="4566">
  399. <td data-start="4467" data-end="4492" data-col-size="sm">Best For</td>
  400. <td data-start="4492" data-end="4528" data-col-size="sm">Those expecting higher future tax</td>
  401. <td data-start="4528" data-end="4566" data-col-size="sm">Those expecting lower future tax</td>
  402. </tr>
  403. </tbody>
  404. </table>
  405. <div class="sticky end-(--thread-content-margin) h-0 self-end select-none">
  406. <div class="absolute end-0 flex items-end"></div>
  407. </div>
  408. </div>
  409. </div>
  410. <p data-start="4568" data-end="4882">The tsp roth calculator helps you test both scenarios, but it can’t tell you how future tax laws will evolve. For a more strategic comparison, you may want to schedule a conversation with a professional planner. Learn more about FERS integration on our <a class="" href="https://gofebra.com/fers-retirement/" target="_new" rel="noopener" data-start="4821" data-end="4881">FERS retirement page</a>.</p>
  411. <hr data-start="4884" data-end="4887" />
  412. <h2 data-start="4889" data-end="4944">Can the Calculator Help with Catch-Up Contributions?</h2>
  413. <p data-start="4946" data-end="5484">Yes, many versions of the tsp roth calculator allow you to input <strong data-start="5011" data-end="5037">catch-up contributions</strong> if you&#8217;re age 50 or older. These additional contributions—up to $7,500 annually (as of 2024)—can significantly boost your account’s growth and provide greater tax-free income in retirement. That said, the calculator typically assumes you’ll make the same catch-up amount each year, which may not reflect real behavior. Strategic decisions, such as when to shift from Traditional to Roth contributions, still require deeper insight from a planner.</p>
  414. <hr data-start="5486" data-end="5489" />
  415. <h2 data-start="5491" data-end="5550">How Does the Calculator Fit Into a Full Retirement Plan?</h2>
  416. <p data-start="5552" data-end="5680">The tsp roth calculator is just <strong data-start="5584" data-end="5611">one piece of the puzzle</strong>. A complete retirement strategy for federal employees also includes:</p>
  417. <ul data-start="5682" data-end="5900">
  418. <li data-start="5682" data-end="5725">
  419. <p data-start="5684" data-end="5725"><strong data-start="5684" data-end="5704">Pension planning</strong> under FERS or CSRS</p>
  420. </li>
  421. <li data-start="5726" data-end="5773">
  422. <p data-start="5728" data-end="5773"><strong data-start="5728" data-end="5754">Social Security timing</strong> and coordination</p>
  423. </li>
  424. <li data-start="5774" data-end="5813">
  425. <p data-start="5776" data-end="5813"><strong data-start="5776" data-end="5811">Health benefits (FEHB/Medicare)</strong></p>
  426. </li>
  427. <li data-start="5814" data-end="5853">
  428. <p data-start="5816" data-end="5853"><strong data-start="5816" data-end="5851">Life insurance planning (FEGLI)</strong></p>
  429. </li>
  430. <li data-start="5854" data-end="5900">
  431. <p data-start="5856" data-end="5900"><strong data-start="5856" data-end="5898">Spousal and survivor benefit decisions</strong></p>
  432. </li>
  433. </ul>
  434. <p data-start="5902" data-end="6166">A federal retirement planner can help you see how these elements interact—something no calculator can do on its own. To understand how all these benefits work together, check out our <a class="" href="https://gofebra.com/about-us/" target="_new" rel="noopener" data-start="6085" data-end="6131">About Us page</a> and get connected with an advisor.</p>
  435. <p data-start="5902" data-end="6166"><img decoding="async" class="alignnone size-full wp-image-3954" src="https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1.jpg" alt="tsp roth calculator" width="1920" height="1280" srcset="https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1.jpg 1920w, https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1-300x200.jpg 300w, https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1-1024x683.jpg 1024w, https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1-768x512.jpg 768w, https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1-1536x1024.jpg 1536w, https://gofebra.com/wp-content/uploads/2025/05/pexels-marcus-aurelius-6787970-1-600x400.jpg 600w" sizes="(max-width: 1920px) 100vw, 1920px" /></p>
  436. <hr data-start="6168" data-end="6171" />
  437. <h2 data-start="6173" data-end="6228">Are There Better Tools Than the Official Calculator?</h2>
  438. <p data-start="6230" data-end="6466">The TSP’s official calculator is reliable but limited in scope. Third-party financial software can offer more detailed modeling and “what if” analysis, especially around taxes and withdrawal strategies. More advanced tools allow you to:</p>
  439. <ul data-start="6468" data-end="6634">
  440. <li data-start="6468" data-end="6500">
  441. <p data-start="6470" data-end="6500">Simulate <strong data-start="6479" data-end="6500">market volatility</strong></p>
  442. </li>
  443. <li data-start="6501" data-end="6547">
  444. <p data-start="6503" data-end="6547">Coordinate <strong data-start="6514" data-end="6547">Roth vs. Traditional balances</strong></p>
  445. </li>
  446. <li data-start="6548" data-end="6593">
  447. <p data-start="6550" data-end="6593">Plan <strong data-start="6555" data-end="6593">tax-efficient withdrawal sequences</strong></p>
  448. </li>
  449. <li data-start="6594" data-end="6634">
  450. <p data-start="6596" data-end="6634">Analyze <strong data-start="6604" data-end="6634">Roth conversion strategies</strong></p>
  451. </li>
  452. </ul>
  453. <p data-start="6636" data-end="6816">However, access to these tools often requires working with a financial professional. For broader tools and personalized help, explore our services at <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="6786" data-end="6815">FEBRA</a>.</p>
  454. <hr data-start="6818" data-end="6821" />
  455. <h2 data-start="6823" data-end="6887">What Life Events Should Prompt You to Revisit the Calculator?</h2>
  456. <p data-start="6889" data-end="6964">You should revisit the tsp roth calculator when any of the following occur:</p>
  457. <ul data-start="6966" data-end="7148">
  458. <li data-start="6966" data-end="7000">
  459. <p data-start="6968" data-end="7000"><strong data-start="6968" data-end="7000">Salary changes or promotions</strong></p>
  460. </li>
  461. <li data-start="7001" data-end="7043">
  462. <p data-start="7003" data-end="7043"><strong data-start="7003" data-end="7043">Marriage, divorce, or new dependents</strong></p>
  463. </li>
  464. <li data-start="7044" data-end="7068">
  465. <p data-start="7046" data-end="7068"><strong data-start="7046" data-end="7068">Changes in tax law</strong></p>
  466. </li>
  467. <li data-start="7069" data-end="7097">
  468. <p data-start="7071" data-end="7097"><strong data-start="7071" data-end="7097">Approaching retirement</strong></p>
  469. </li>
  470. <li data-start="7098" data-end="7148">
  471. <p data-start="7100" data-end="7148"><strong data-start="7100" data-end="7148">Shifts in investment goals or risk tolerance</strong></p>
  472. </li>
  473. </ul>
  474. <p data-start="7150" data-end="7523">These events can impact your contributions, investment choices, and withdrawal plans. Because the calculator doesn’t auto-update for life changes, it’s best to use it alongside professional reviews. For insurance-related changes that may affect your strategy, review our <a class="" href="https://gofebra.com/insurance-and-supplimental-benefits/" target="_new" rel="noopener" data-start="7421" data-end="7522">insurance and supplemental benefits guide</a>.</p>
  475. <hr data-start="7525" data-end="7528" />
  476. <h2 data-start="7530" data-end="7581">Where Can You Get Help Interpreting the Results?</h2>
  477. <p data-start="7583" data-end="8030">If you’ve run the tsp roth calculator but still feel unsure what to do next, you’re not alone. Understanding whether to adjust your contributions, rebalance your investments, or prepare for tax implications takes expertise. At <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="7810" data-end="7839">FEBRA</a>, we help federal employees turn data into decisions. From personalized Roth vs. Traditional strategies to full retirement coordination, we’re here to help you make the most of your benefits.</p>
  478. ]]></content:encoded>
  480. <wfw:commentRss>https://gofebra.com/tsp-roth-calculator-what-it-can-and-cant-tell-you-about-your-retirement-future/feed/</wfw:commentRss>
  481. <slash:comments>0</slash:comments>
  484. </item>
  485. <item>
  486. <title>Understanding Retirement Plans for Teachers: A Guide to Pensions, 403(b), and More</title>
  487. <link>https://gofebra.com/understanding-retirement-plans-for-teachers-a-guide-to-pensions-403b-and-more/</link>
  488. <comments>https://gofebra.com/understanding-retirement-plans-for-teachers-a-guide-to-pensions-403b-and-more/#respond</comments>
  490. <dc:creator><![CDATA[admin]]></dc:creator>
  491. <pubDate>Mon, 09 Jun 2025 05:44:06 +0000</pubDate>
  492. <category><![CDATA[News]]></category>
  493. <guid isPermaLink="false">https://gofebra.com/?p=3957</guid>
  494.  
  495. <description><![CDATA[Retirement plans for teachers are as varied as the school districts they work in. While pensions are still common in the public education system, most teachers today must navigate a mix of defined benefit and defined contribution plans—including 403(b)s, IRAs, and supplemental savings—to ensure a secure retirement. In this guide, we’ll break down how these [&#8230;]]]></description>
  496. <content:encoded><![CDATA[<p data-start="86" data-end="545">Retirement plans for teachers are as varied as the school districts they work in. While pensions are still common in the public education system, most teachers today must navigate a mix of defined benefit and defined contribution plans—including 403(b)s, IRAs, and supplemental savings—to ensure a secure retirement. In this guide, we’ll break down how these options work, what to look out for, and how educators can make the most of their retirement journey.</p>
  497. <hr data-start="547" data-end="550" />
  498. <h2 data-start="552" data-end="612">What Are the Main Types of Retirement Plans for Teachers?</h2>
  499. <p data-start="614" data-end="748">Retirement plans for teachers typically fall into two broad categories: <strong data-start="686" data-end="711">defined benefit plans</strong> and <strong data-start="716" data-end="746">defined contribution plans</strong>.</p>
  500. <ul data-start="750" data-end="1174">
  501. <li data-start="750" data-end="949">
  502. <p data-start="752" data-end="949"><strong data-start="752" data-end="789">Defined Benefit Plans (Pensions):</strong> These provide a guaranteed income in retirement based on years of service and final salary. They’re managed by state or local teacher retirement systems (TRS).</p>
  503. </li>
  504. <li data-start="950" data-end="1174">
  505. <p data-start="952" data-end="1174"><strong data-start="952" data-end="983">Defined Contribution Plans:</strong> These include 403(b)s and 457(b)s, where teachers contribute a portion of their salary into investment accounts. These plans do not guarantee income but can grow based on market performance.</p>
  506. </li>
  507. </ul>
  508. <p data-start="1176" data-end="1350">Most public-school teachers are automatically enrolled in a state-sponsored pension plan, while others may be offered additional savings opportunities through their employer.</p>
  509. <hr data-start="1352" data-end="1355" />
  510. <h2 data-start="1357" data-end="1389">How Do Teacher Pensions Work?</h2>
  511. <p data-start="1391" data-end="1552">Pensions are often the foundation of retirement plans for teachers. These plans reward longevity and loyalty, typically calculating your benefit using a formula:</p>
  512. <p data-start="1391" data-end="1552">Final Average Salary × Years of Service × Multiplier = Annual Pension</p>
  513. <p data-start="1633" data-end="2131">Each state has its own rules for determining final average salary and the multiplier. For example, a teacher in California may receive 2% per year of service, while in Texas the rate might differ. Most plans require 5 to 10 years of service to vest in the system. Keep in mind that leaving teaching early or switching states can reduce your overall pension value. If you&#8217;re part of a federal system like FERS, see how it compares on our <a class="" href="https://gofebra.com/fers-retirement/" target="_new" rel="noopener" data-start="2070" data-end="2130">FERS retirement page</a>.</p>
  514. <hr data-start="2133" data-end="2136" />
  515. <h2 data-start="2138" data-end="2184">What Is a 403(b) Plan and How Does It Work?</h2>
  516. <p data-start="2186" data-end="2358">A 403(b) plan is a <strong data-start="2205" data-end="2250">tax-advantaged retirement savings account</strong> available to public school employees and certain non-profit workers. Similar to a 401(k), it allows you to:</p>
  517. <ul data-start="2360" data-end="2566">
  518. <li data-start="2360" data-end="2430">
  519. <p data-start="2362" data-end="2430">Contribute pre-tax income (or post-tax via Roth 403(b) if available)</p>
  520. </li>
  521. <li data-start="2431" data-end="2497">
  522. <p data-start="2433" data-end="2497">Choose from investment options such as mutual funds or annuities</p>
  523. </li>
  524. <li data-start="2498" data-end="2566">
  525. <p data-start="2500" data-end="2566">Defer taxes on gains until withdrawal (or grow tax-free with Roth)</p>
  526. </li>
  527. </ul>
  528. <p data-start="2568" data-end="2930">In 2024, the annual contribution limit is $23,000 (plus an additional $7,500 catch-up for those over 50). 403(b)s are especially helpful for teachers whose pensions may not fully replace their income in retirement. For more context on how these savings compare to TSP accounts, check out our <a class="" href="https://gofebra.com/thrift-savings-plan/" target="_new" rel="noopener" data-start="2860" data-end="2929">Thrift Savings Plan guide</a>.</p>
  529. <hr data-start="2932" data-end="2935" />
  530. <h2 data-start="2937" data-end="2989">How Do IRAs Fit Into a Teacher’s Retirement Plan?</h2>
  531. <p data-start="2991" data-end="3144">Individual Retirement Accounts (IRAs) are personal savings vehicles that teachers can use <strong data-start="3081" data-end="3119">in addition to pensions or 403(b)s</strong>. You can choose between:</p>
  532. <ul data-start="3146" data-end="3360">
  533. <li data-start="3146" data-end="3238">
  534. <p data-start="3148" data-end="3238"><strong data-start="3148" data-end="3168">Traditional IRA:</strong> Contributions are tax-deductible, and taxes are paid upon withdrawal.</p>
  535. </li>
  536. <li data-start="3239" data-end="3360">
  537. <p data-start="3241" data-end="3360"><strong data-start="3241" data-end="3254">Roth IRA:</strong> Contributions are made with after-tax dollars, but withdrawals in retirement are tax-free (if qualified).</p>
  538. </li>
  539. </ul>
  540. <p data-start="3362" data-end="3583">IRAs provide more investment flexibility than most employer-sponsored plans. Contribution limits are lower ($7,000 for 2024, or $8,000 if over 50), but they can be a great way to diversify your tax exposure in retirement.</p>
  541. <hr data-start="3585" data-end="3588" />
  542. <h2 data-start="3590" data-end="3635">What Happens If a Teacher Switches States?</h2>
  543. <p data-start="3637" data-end="3850">One of the biggest risks with retirement plans for teachers is <strong data-start="3700" data-end="3715">portability</strong>. State pension plans don’t always transfer between states, and service time may not be recognized in a new system. This can result in:</p>
  544. <ul data-start="3852" data-end="3936">
  545. <li data-start="3852" data-end="3877">
  546. <p data-start="3854" data-end="3877">Loss of pension credits</p>
  547. </li>
  548. <li data-start="3878" data-end="3904">
  549. <p data-start="3880" data-end="3904">New vesting requirements</p>
  550. </li>
  551. <li data-start="3905" data-end="3936">
  552. <p data-start="3907" data-end="3936">Delays in benefit eligibility</p>
  553. </li>
  554. </ul>
  555. <p data-start="3938" data-end="4316">In some cases, teachers can <strong data-start="3966" data-end="3993">purchase service credit</strong> in their new state, but this often comes at a cost. Teachers who switch jobs frequently may want to prioritize 403(b) and IRA contributions to ensure retirement savings stay with them regardless of employment changes. For more on retirement transitions, explore our <a class="" href="https://gofebra.com/retirement/" target="_new" rel="noopener" data-start="4260" data-end="4315">retirement resources</a>.</p>
  556. <hr data-start="4318" data-end="4321" />
  557. <h2 data-start="4323" data-end="4385">Should Teachers Contribute to a Roth or Traditional 403(b)?</h2>
  558. <p data-start="4387" data-end="4511">The choice between <strong data-start="4406" data-end="4437">Roth and Traditional 403(b)</strong> depends on your current tax rate versus your expected rate in retirement.</p>
  559. <div class="_tableContainer_16hzy_1">
  560. <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1">
  561. <table class="w-fit min-w-(--thread-content-width)" data-start="4513" data-end="4943">
  562. <thead data-start="4513" data-end="4598">
  563. <tr data-start="4513" data-end="4598">
  564. <th data-start="4513" data-end="4538" data-col-size="sm">Factor</th>
  565. <th data-start="4538" data-end="4567" data-col-size="sm">Traditional 403(b)</th>
  566. <th data-start="4567" data-end="4598" data-col-size="sm">Roth 403(b)</th>
  567. </tr>
  568. </thead>
  569. <tbody data-start="4685" data-end="4943">
  570. <tr data-start="4685" data-end="4771">
  571. <td data-start="4685" data-end="4710" data-col-size="sm">Tax Treatment</td>
  572. <td data-start="4710" data-end="4740" data-col-size="sm">Tax-deferred</td>
  573. <td data-start="4740" data-end="4771" data-col-size="sm">Tax-free withdrawals</td>
  574. </tr>
  575. <tr data-start="4772" data-end="4857">
  576. <td data-start="4772" data-end="4797" data-col-size="sm">Contributions</td>
  577. <td data-start="4797" data-end="4826" data-col-size="sm">Pre-tax</td>
  578. <td data-start="4826" data-end="4857" data-col-size="sm">After-tax</td>
  579. </tr>
  580. <tr data-start="4858" data-end="4943">
  581. <td data-start="4858" data-end="4883" data-col-size="sm">Best For</td>
  582. <td data-start="4883" data-end="4912" data-col-size="sm">Higher earners today</td>
  583. <td data-start="4912" data-end="4943" data-col-size="sm">Younger or lower earners now</td>
  584. </tr>
  585. </tbody>
  586. </table>
  587. <div class="sticky end-(--thread-content-margin) h-0 self-end select-none">
  588. <div class="absolute end-0 flex items-end"></div>
  589. </div>
  590. </div>
  591. </div>
  592. <p data-start="4945" data-end="5318">A tsp roth calculator can help model these outcomes for federal employees, and similar logic applies to teachers. The key is understanding how taxes, investment growth, and pension income interact. For help evaluating insurance options alongside these accounts, visit our <a class="" href="https://gofebra.com/insurance-and-supplimental-benefits/" target="_new" rel="noopener" data-start="5217" data-end="5317">insurance and supplemental benefits page</a>.</p>
  593. <hr data-start="5320" data-end="5323" />
  594. <h2 data-start="5325" data-end="5365">Do Teachers Pay Into Social Security?</h2>
  595. <p data-start="5367" data-end="5571">Not all teachers do. Whether you pay into Social Security depends on your <strong data-start="5441" data-end="5470">state and school district</strong>. About 40% of public school teachers in the U.S. do <strong data-start="5523" data-end="5561">not participate in Social Security</strong>, meaning:</p>
  596. <ul data-start="5573" data-end="5709">
  597. <li data-start="5573" data-end="5627">
  598. <p data-start="5575" data-end="5627">You won’t earn Social Security credits from teaching</p>
  599. </li>
  600. <li data-start="5628" data-end="5709">
  601. <p data-start="5630" data-end="5709">Your benefit may be reduced due to the <strong data-start="5669" data-end="5709">Windfall Elimination Provision (WEP)</strong></p>
  602. </li>
  603. </ul>
  604. <p data-start="5711" data-end="5981">Teachers without Social Security coverage must rely more heavily on their pensions and personal savings. If you&#8217;re unsure whether you&#8217;re affected, contact your HR department or consult a federal benefits expert through our <a class="" href="https://gofebra.com/about-us/" target="_new" rel="noopener" data-start="5934" data-end="5980">About Us page</a>.</p>
  605. <p data-start="5711" data-end="5981"><img decoding="async" class="size-full wp-image-3959 aligncenter" src="https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595.jpg" alt="retirement plans for teachers" width="1280" height="853" srcset="https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595.jpg 1280w, https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595-300x200.jpg 300w, https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595-1024x682.jpg 1024w, https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595-768x512.jpg 768w, https://gofebra.com/wp-content/uploads/2025/05/pexels-ron-lach-7967595-600x400.jpg 600w" sizes="(max-width: 1280px) 100vw, 1280px" /></p>
  606. <hr data-start="5983" data-end="5986" />
  607. <h2 data-start="5988" data-end="6048">What Are the Pros and Cons of Defined Contribution Plans?</h2>
  608. <p data-start="6050" data-end="6124">Defined contribution plans like 403(b)s and 457(b)s offer many advantages:</p>
  609. <p data-start="6126" data-end="6135"><strong data-start="6126" data-end="6135">Pros:</strong></p>
  610. <ul data-start="6136" data-end="6259">
  611. <li data-start="6136" data-end="6167">
  612. <p data-start="6138" data-end="6167">More control over investments</p>
  613. </li>
  614. <li data-start="6168" data-end="6201">
  615. <p data-start="6170" data-end="6201">Portable across jobs and states</p>
  616. </li>
  617. <li data-start="6202" data-end="6259">
  618. <p data-start="6204" data-end="6259">Ability to increase savings above pension contributions</p>
  619. </li>
  620. </ul>
  621. <p data-start="6261" data-end="6270"><strong data-start="6261" data-end="6270">Cons:</strong></p>
  622. <ul data-start="6271" data-end="6368">
  623. <li data-start="6271" data-end="6293">
  624. <p data-start="6273" data-end="6293">No guaranteed income</p>
  625. </li>
  626. <li data-start="6294" data-end="6333">
  627. <p data-start="6296" data-end="6333">Investment risk falls on the employee</p>
  628. </li>
  629. <li data-start="6334" data-end="6368">
  630. <p data-start="6336" data-end="6368">Requires discipline and planning</p>
  631. </li>
  632. </ul>
  633. <p data-start="6370" data-end="6541">These plans work best when combined with a pension or Social Security. Diversifying across multiple account types helps teachers create a more stable income in retirement.</p>
  634. <hr data-start="6543" data-end="6546" />
  635. <h2 data-start="6548" data-end="6600">How Can Teachers Estimate Their Retirement Needs?</h2>
  636. <p data-start="6602" data-end="6670">Teachers can estimate their retirement needs using a combination of:</p>
  637. <ul data-start="6672" data-end="6790">
  638. <li data-start="6672" data-end="6725">
  639. <p data-start="6674" data-end="6725">Pension calculators (provided by state TRS systems)</p>
  640. </li>
  641. <li data-start="6726" data-end="6757">
  642. <p data-start="6728" data-end="6757">403(b)/IRA growth calculators</p>
  643. </li>
  644. <li data-start="6758" data-end="6790">
  645. <p data-start="6760" data-end="6790">Retirement expense projections</p>
  646. </li>
  647. </ul>
  648. <p data-start="6792" data-end="7194">A good rule of thumb is to replace <strong data-start="6827" data-end="6837">70–85%</strong> of your pre-retirement income. However, this varies depending on lifestyle, debt, and healthcare needs. Online calculators offer a rough estimate, but working with a retirement advisor is the best way to personalize your plan. For comparison, see how federal retirement planning works via our <a class="" href="https://gofebra.com/csrs-information/" target="_new" rel="noopener" data-start="7131" data-end="7193">CSRS information page</a>.</p>
  649. <hr data-start="7196" data-end="7199" />
  650. <h2 data-start="7201" data-end="7256">Where Can Teachers Get Help Planning for Retirement?</h2>
  651. <p data-start="7258" data-end="7755">Navigating retirement plans for teachers isn’t easy. Between state pension rules, Social Security limitations, and investment decisions, there’s a lot at stake. That’s where personalized help becomes invaluable. At <a class="" href="https://gofebra.com/" target="_new" rel="noopener" data-start="7473" data-end="7502">FEBRA</a>, we specialize in guiding public employees—especially federal workers, but many principles apply across sectors. Whether you&#8217;re early in your career or nearing retirement, we can help you make sense of your benefits and build a plan that works for you.</p>
  652. ]]></content:encoded>
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