TSP : Securing Your Nest Egg
WHEN CONGRESS SET up the three-legged Federal Employees Retirement System ( FERS ), they estimated that the Thrift Savings Plan ( TSP ) would provide federal employees with a substantial portion of their future lifetime income . By some estimates , the TSP will be the source of one third to one half of federal employees ’ retirement nest egg , alongside Social Security and their FERS annuity .
For those under the Civil Service Retirement System , the TSP is a nice option but not essential . The TSP is a no brainer , though , for those people who are under the FERS plan with so much of their retirement income depending on it . To add to the importance of your TSP nest egg , the Centers for Disease and Prevention ( CDC ) has recently stated that the life expectancy is increasing for the first time in four years , topping out at around 76 years of age for men and 81 years of age for women . That trend , in accordance with the US Census data , is expected to continue .
In the case of a longer life expectancy , this means that even more importance is placed on the TSP to provide federal employees with their income needs for longer periods of time in retirement . Planning for retirement can be difficult and a source of great stress for many people , especially when it comes to planning for the TSP . So much is riding on their accounts doing well in order to provide the income they will need for retirement . With that being said , it is still entirely within the means of federal employees to position themselves well for their retirement years . That begins with a well-designed and executed plan .
THREE VITAL THINGS TO CONSIDER WHEN PLANNING FOR YOUR TSP AND RETIREMENT
DETERMINE INCOME NEEDS More than half of federal employees do not know how much money they will need to retire . Even those that do know often do not have a plan to back it up . Things like choosing the right time to start taking advantage of Social Security benefits , getting a grasp on the retirement plans and investments that they have , and learning how to live within their means are all topics that require research and planning .
12 THRIFT SAVINGS PLAN FREEDOMFEDED . COM