FERS Pension Deductions | How Much Money Will You Get in Retirement?

Are you aware of the FERS Pension Deductions that will occur in retirement? Do you have an estimate for the amount of money you should plan to actually receive once you have paid for all of these benefits? Do you understand the difference between your Gross (total) FERS Pension amount and your Net (minus deductions) FERS Pension amount? In this video, Micah breaks down an example retirement situation and explains some FERS Pension deductions you should be aware of.
You can read the full article here: plan-your-fede...
If you found this article helpful, do me a favor and hit subscribe. In the comments below, tell me, has your agency done a good job at helping you prepare for retirement by explaining the deductions that are going to be there?
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Until next time, happy planning!
Micah Shilanski, CFP®
#PlanYourFederalRetirement #FERS
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[@roblawhon246]

Great. I’ll be able to live in a van down by the river.

[@MrAerialsound]

I really like your video-- because it is to the point and not drag out to a 15 minute video

[@planyourfederalretirement]

Have you heard our podcast? Not only do we produce incredible video content to walk Feds through their benefits but we also have an AMAZING podcast with Tammy Flanagan - national benefits expert - where we dive into the intricacies of federal employee benefits. For more information, check out our podcast: plan-your-federal-retirement.com/podcasts/

[@Dave-sw2dm]

So basically compare net to net. No more TSP, SS, Medicare, etc. Plus the max SS benefits can be taxed is 85 percent.

[@charlescooper3150]

What if the deductions are more than pention. How due I pay difference

[@gypsyroads9810]

Do I still have to pay Medicare and OASDI out of my retirement check?

[@Xinerius]

It’s been 2 years no one answered you, but, base on Googling, you don’t. Pension isn’t considered “earned income.”

[@martinreiss1426]

Are monthly surviving spouse payments from social security included in the FERS pension reduction or do you mean surviving spouse benefits from the FERS annuity.? Surviving spouse payments count as unearned income.

[@thejakein7867]

talk about how SBP is a complete rip off

[@joseCalderon1976]

I guess the new deduction formula for us retiring in the future is that we are getting kicked out of the FEHB and are going to be forced into Medicare.

[@asandrik3124]

I can't find any info on deductions for the Federal Long Term Care Insurance and it is not on my retirement estimate from my HR (even though I asked them to include it or tell me how it is handled). How is mine and my wife's Long term care insurance handled??????

[@planyourfederalretirement]

Please see the answer prepared on the following link: plan-your-federal-retirement.com/you-ask-we-answer-deductions-for-the-federal-long-term-care/

[@mikethompson4854]

Can you pay for the medical, Dental and Vision monthly by check and not have it taken out of your retirement?

[@frankofva8803]

Great info. On the positive side, depending on where you live and how you’re invested (Traditional or Roth TSP) your Social Security Supplement and your TSP will only have Federal and State taxes coming out, correct? So you could be netting a high percentage from those two legs of the stool, maybe 80% or more?

[@planyourfederalretirement]

Hey Frank, I appreciate the question! We are currently routing our answer through our compliance department. Unfortunately, this is never a timely or quick process, but unfortunately something we have to do. We hope to get you this answer as soon as we can. We appreciate the patience! Thanks!

[@randys6220]

No answer after more than 3 years later....

[@itguru2037]

Move to Florida. No taxes on pension or social security. Be a veteran so you don’t have to pay for health insurance. No survivor benefits. ✅

[@bannertraveller5879]

who wants all their care through the VA? No thanks

[@itguru2037]

@@bannertraveller5879 it’s better than for profit bs health care in the USA

[@user-ds1xu9bt1g]

if you have 9 years of federal service and retire at the age of 62, can you still maintain the Federal health insurance?

[@planyourfederalretirement]

Yes, as long as you have at least 5 years of Civilian federal service, you can retire at 62 and keep your Federal health insurance.

[@olsailordan]

I am retired navy and I’m about to retire from a federal job. I’m paying for FEHB DENTAL out of my military retirement pay. Will that still be taken out of my federal retirement pay even if it’s already being paid for? Or, if I elect not to be covered by FEHB, will that affect my Tricare benefits?

[@planyourfederalretirement]

We recommend marking the box on your retirement application that you will be covered under FEHB. If you select "No," this is an irreversible decision. You can continue to pay for your FEHB using your military retirement; just be sure to include the documentation for this in your retirement packet.

[@olsailordan]

@@planyourfederalretirement, thank you. Believe it or not, that was my only issue.

[@roachtoasties]

After all deductions, what's left will probably get you dinner for two at Taco Bell. :/

[@stevem-zk6ki]

That's why u invest in the tsp and social security system and if u were smart hopefully an hsa or Roth ira all together that would probably keep u comfortable.

[@ronniepearl4839]

We're both fed employees, my wife carries the FEHB insurance. Does it make sense to have my own FEHB insurance at retirement age? I most likely would retire 3 years before my wife with 16 years of service. She will have close to 40 years at her retirement time. Thanks, Ron

[@itguru2037]

Of course not. Unless you are getting a divorce

[@donnacarroll7615]

Michael, Are you available for a consult?? Thanks!

[@planyourfederalretirement]

Hi Donna, you can find the information here: plan-your-federal-retirement.com/personal-help/. Thanks!