Sample Benefit Analysis

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Disclaimer This report illustrates estimates of cost and benefits for the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), Federal Employees Group Life Insurance (FEGLI), Federal Employees Health <strong>Benefit</strong>s Program (FEHB), Long Term Care (LTC) Insurance, Social Security System benefits, and the Thrift Savings Plan (TSP). Some estimates are based on assumptions, which may affect the results, and may differ from actual experience. Since future costs and benefits cannot be estimated with absolute certainty, you should not base your financial decisions solely on the estimates of this report, and it is recommended to consult with your personnel office or the Office of Personnel Management (OPM), Retirement Information Office 1-888-767-6738. Public Sector Retirement Educators cannot provide retirement analysis and decision information to you. The analysis is provided 'AS IS' without warranties of any kind (including the implied warranties of merchantability and fitness for a particular purpose). No oral or written information or advice provided by Public Sector Retirement Educators and its agents or employees shall create a warranty of any kind regarding this analysis, and you may not rely upon such information or advice. Neither Public Sector Retirement Educators nor anyone else who has been involved in the creation, production, or delivery of this analysis shall be liable for any direct, indirect, consequential, or incidental damages (including, but not limited to, damages for loss of business or personal profits, business or personal interruption, and loss of business or personal information) arising from the use of (or inability to use) this analysis. Public Sector Retirement Educators - Betty Boettcher - 800-587-7476 Page 2 of 56
Financial Planning Overview Are you looking forward to the day you retire? To having more time to travel, spend with family and friends, enjoy new hobbies, or increase your volunteer work? Or does the thought of retirement make you slightly uneasy; unsure if you will have enough money to stop working, but not knowing how much you need to save? Being able to retire when you want and living comfortably is a dream for many federal employees, and the goal of this analysis is to help you reach it. The biggest question is, when the time comes to stop working, will you have enough income to continue the lifestyle you had before retirement? That depends on the lifestyle you want to maintain and the types of income you will have. Federal retirement monthly annuity payments alone will not be enough for most federal retirees. Keep in mind that the average American life expectancy is 74.8 years for men and 80.1 years for women. The “average” federal employee who retires at age 55 looks forward to another 20 to 25 years of life. Many will have even more years. It is never too early to begin planning how you want to spend those years. When people think of retirement planning, usually the first thing that comes to mind is the financial aspect of retirement - whether they will have enough money to enjoy a comfortable lifestyle after they retire. As a general rule, financial experts estimate that you need between 70% and 100% of your pre-retirement income to maintain your standard of living when you quit working. The conventional wisdom is that if you are a higher-income earner, you will need closer to 70% of your pre-retirement income, while lower-income earners will need closer to 100% of their pre-retirement income. But while this 70-100% guideline can be helpful, it’s crucial that you sit down and figure out exactly how much money you will need, based on your particular circumstances. Issues such as whether you own your home, are planning to pay for a child’s education or pay for care for an elderly parent, or will relocate to an area with a lower cost of living, will all play an important role in determining whether you have enough money for retirement. Determining whether you have enough money to retire is not all that complicated. You need to know three things: 1. When you plan to retire, 2. An estimate of what your income will be at and during retirement, and 3. An estimate of your expenses at and during retirement. This analysis will address these three areas. The data presented in this analysis was created from the information that you provided. Reasonable assumptions regarding future projections were made, but, no one can predict the future exactly. The projections from what you know now will give you an estimate of what to expect in the future. Public Sector Retirement Educators - Betty Boettcher - 800-587-7476 Page 3 of 56
Page 1: Federal Employee Benefits Analysis
Page 5 and 6: 7 Misconceptions About Retired Life
Page 7 and 8: Monthly Retirement Income and Expen
Page 9 and 10: Monthly Income / Expense - All Sour
Page 11 and 12: these policies to lower your premiu
Page 13 and 14: Your Retirement Income Determine ho
Page 15 and 16: Monthly Income - Government (All fi
Page 17 and 18: Annual Income Summary - Other Sourc
Page 19 and 20: Your Retirement Expenses Public Sec
Page 21 and 22: Expense Analysis Public Sector Reti
Page 23 and 24: Monthly Expense - Government (All f
Page 25 and 26: Monthly Expense - Other Sources (Es
Page 27 and 28: Personal Federal Employee Benefits
Page 29 and 30: FEGLI and Survivor Benefit Accumula
Page 31 and 32: Government Related Income Analysis
Page 33 and 34: including eligibility to retire, fo
Page 35 and 36: Annuity and Survivor Benefit (All f
Page 37 and 38: Social Security and FERS Supplement
Page 39 and 40: FERS Supplement and Estimated Socia
Page 41 and 42: CSRS Offset and Estimated Social Se
Page 43 and 44: entitled to agency matching contrib
Page 45 and 46: Specific Dollar Amount. You may req
Page 47 and 48: Thrift Savings Plan (All figures sh
Page 49 and 50: Government Related Expense Analysis
Page 51 and 52: Federal Employees Group Life Insura
Page 53 and 54:
Federal Employees Health Benefits (
Page 55 and 56:
Federal Long Term Care Insurance Pr
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Sample Benefit Analysis

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