Saving For Retirement

How far along are you with your retirement savings? There are several techniques to assess your retirement readiness, and one of them shows that you outperform 74% of workers. 

What do I mean by that?

The Bureau of Labor Statistics estimates that 26% of civilian workers have a pension. Only 16% of private-sector workers have a pension, compared to 34% of state and local government employees.

In retirement, your FERS pension will be a valuable source of income. 

In today’s money, someone receiving a $30,000 FERS pension would have to save nearly $1,500,000 to achieve that level of income. Your FERS pension includes a modified cost-of-living adjustment (COLA) and is paid for life. 

FERS will never run out of money, and inflation will not cause you to lose too much ground. In fact, in years when inflation is less than 2%, you will lose nothing; in years when inflation is 3% or higher, your pension will increase above inflation by 1%. Based on a 5.9% increase in the Consumer Price Index, the most recent FERS COLA was 4.9%. You do not begin to receive the COLA until you reach the age of 62 (unless you are a special category employee/retiree).

However, you won’t be able to count on a $30,000 per year income from your Thrift Savings Plan (TSP) unless you have close to $1,500,000 in your account. It’s feasible, but not certain, that you’ll be able to draw $30,000 per year if your assets do well. Compare your TSP balance to the following figures, which depict the median net worth of families by age:

• Under 35 years old – $13,900

• 35 to 44 years old – $91,300

• 45 to 54 years old – $168,600

• Age 55-64 – $212,500
• Age 65-74 – $266,400

• Over 75 years old – $254,800

Remember that “net worth” encompasses more than simply retirement savings, so if you have saved more than the amounts listed above, you are ahead of more than half of your age group.

You should be undoubtedly pleased with yourself and your position compared to your peers. The following are the median net worth figures for several sorts of families:

• Every family: $122,700

• Homeowners: $255,000

• Graduates from college: $308,200

•Top 10%: $1,589,300

Federal employees have a good chance of having a pleasant retirement. Examine your current circumstances to evaluate if they are favorable to you.

Contact Information:
Email: [email protected]
Phone: 7242723902

Bio:
Craig E. Vukich is a 35 year retirement specialist and Financial Advisor who has helped thousands of clients all over the country with their investment portfolios and retirement strategies.
In that time, Craig has also helped seniors and retirees with their Medicare options as healthcare continues to be one of the most confusing issues facing people today.
Personally, Craig lives in Beaver Falls, Pa with his beautiful wife and childhood sweetheart Barb and their lovely daughter Shalyn.
Craig is a graduate of Westminster College which is about an hour north of Pittsburgh. Craig is a recreational golfer and traveler and Pittsburgh sports fanatic.

Disclosure:
This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.