The federal survivor annuity election is irrevocable, permanently cutting monthly checks by 10% and costing retirees roughly $90,000 in lifetime present-value income.
FEGLI Option B premiums double every five years past 60, often making private term life insurance a cheaper replacement for healthy retirees.
Rolling a TSP into a traditional IRA unlocks qualified charitable distributions up to $108,000 annually, satisfying RMDs without adding taxable income.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A 68-year-old federal retiree sits down with his account statements and has a startling revelation. His Thrift Savings Plan (TSP) holds $1.2 million, his FERS or CSRS annuity arrives like clockwork, and on paper he looks secure. The problem is the irrevocable survivor election he signed at retirement. Either he locked in a full survivor annuity that permanently reduces his monthly check by roughly 10%, or he waived it without modeling what that meant for his spouse. Either way, the present-value cost of that single signature looks like roughly $90,000 in lifetime income. He cannot undo it, but he can stop compounding the mistake.
FEGLI Option B premiums double every five years past 60, often making private term life insurance a cheaper replacement for healthy retirees.
Rolling a TSP into a traditional IRA unlocks qualified charitable distributions up to $108,000 annually, satisfying RMDs without adding taxable income.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A 68-year-old federal retiree sits down with his account statements and has a startling revelation. His Thrift Savings Plan (TSP) holds $1.2 million, his FERS or CSRS annuity arrives like clockwork, and on paper he looks secure. The problem is the irrevocable survivor election he signed at retirement. Either he locked in a full survivor annuity that permanently reduces his monthly check by roughly 10%, or he waived it without modeling what that meant for his spouse. Either way, the present-value cost of that single signature looks like roughly $90,000 in lifetime income. He cannot undo it, but he can stop compounding the mistake.
1 month ago
