[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]You, like most people, want to increase efforts to reduce expenses and debt and raise your retirement income. With that in mind, here are five ways to help you fill out your retirement nest a little faster.
1. Increase your TSP savings.
For a quick and easy projection of your account balance growth and future contributions, utilize the Securities and Exchange Commission’s Compound Interest Calculator. To calculate TSP (Thrift Savings Plan) monthly savings, make sure you include agency matching and automatic contributions as well as your own. The TSP has its own calculator, How Much Will My Savings Grow, that can be used to run a number of interest rate possibilities. Additionally, clients can then use the TSPs Retirement Income Calculator to convert the balance into retirement income.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
2. Reduce the amount you’re paying in taxes.
Consider reaping the benefits of pre-tax dollars by expanding the amount of contributions you make to your thrift savings plan. However, if you already are saving after-tax dollars with the Roth TSP plan, you’ll reduce the amount of taxable income in retirement. You can choose to pay the IRS now or later. Another option is to cover your health care expenses by using a high-deductible health plan with a health savings account to experience tax-free savings. A flexible spending account will allow you to pay for dependent care expenses and out-of-pocket health costs up to an annual limit.
3. Get credit for your past military and federal service time.
For every month of service, you earn 1/12th of a percentage of your high-three average salary. While the percentage can vary from 2 percent for Civil Service Retirement System workers and 1 to 1.1 percent for FERS, every month or month of your service is worth collecting the benefits of. Be sure that your employment history indicates the start and end dates of each appointment as well as the work schedule and retirement coverage. Locate these records within your electronic official personnel folder and keep a safe copy.
4. Consider paying deposits to your retirement fund.
In some cases, you may have to make a deposit into your retirement fund in order to gain full credit for this annuity service. Rules differ for military and civilian service credit as well as for FERS and CSRS. Be sure to connect with a retirement specialist in your company’s human resources department to determine what kind of effect paying this deposit would have and whether or not you wish to make that decision.
5. Keep working if you’re under the Federal Employee Retirement System.
At the very minimum, it’s best to keep your job until you qualify for Social Security retirement, cost of living adjustments, and the FERS 1.1 percent annuity calculation factor. As in, if you’ve had 20 years of service, work until you reach the age of 62. Â
These suggestions are designed to help you surpass your expectations for a stable and steady retirement, and hopefully quicker than you think. [/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36434″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
