After the valuation of all assets, your anticipated income and expected retirement expenses need to be calculated before you continue with modifying or establishing your retirement plans. Retirement means that you’ll basically be drawing down on your nest egg (although you’ll be counting on income from your investments) as opposed to getting steady, regular paychecks while you still work. Your retirement expenses, which may be seen as the minimum amount you need to have to fund a certain lifestyle and pay for extra expenses, are bound to change as the years pass.
For your retirement plans to translate well into actual retirement, you have to ensure that you have ample guaranteed income for essential expenses like housing, food, and insurance premiums, at the point of transition. You’ll also need to have money to pay for discretionary expenses, such as hobbies, travel, and other non-essentials. Some examples of guaranteed income sources with which you can pay for these expenses are Social Security benefits, pensions, and annuities. You may also be able to count on other sources of money such as a part-time salary, capital gains and other assets, interest, and so on.
After calculating your projected income versus the expenses you’ll have to pay for in retirement, you have to identify if your funds will last. Here, calculating the current value of your retirement expenses is necessary. This part isn’t going to be easy because there are numerous factors that could change how much money you need, including when you plan to retire, the rates of inflation you’ll encounter, investment returns before and after taxes, and expected life span.
Now, if you find that your income and assets are less than what you expect to spend when you retire, you’ll have to adjust accordingly. There are many options available to help you bridge the gap (including working in retirement, cutting your expenses, or changing the rates at which you withdraw from your savings accounts) between your assets and anticipated income versus your expected retirement expenses.
Carina Smith is an author in financial topics concerning seniors. Puritan Financial Group gives seniors reliable ways to add to their anticipated income and cover their retirement expenses. For more information on how Puritan Financial Group can help you, visit http://www.puritanlife.com
THINKING OF RETIRING?
Your local Personnel Office no longer processes retirements. You will need to contact the Human Resource Shard Services Center (HRSSC) 1-877-477-3273 Option 5 or (TDD/TTY) 1-866-260-7507.
• Request your annuity estimate either by calling HRSSC or on line at www.liteblue.usps.gov
• In order to request an annuity estimate, you must be full time and eligible to retire within the next 5 years. PTR or PTF employees must contact HRSSC for an annuity estimate.
• To have the annuity estimate mailed to your home, Under Employee Apps – Quick Links, click on PostalEASE
• Enter your Employee Identification Number (EIN) and USPS PIN
• Under Benefits, click on NARECS Annuity Estimate
• Select your retirement date (all estimates are calculated for the 1st day of the month).
• An annuity estimate will be mailed to your home of record within 10 days or you can view and print your annuity estimate from eRetire
Call HRSSC Retirements at 1-877-477-3273, option 5 if eRetire wont work.
1. Request Your NARECS Annuity Estimate before watching the Step by Step Retirement Videos
2. Step by Step Kentuckiana Retirement Seminars Online for FERS
3. Click on – https://www.youtube.com/channel/UCKg-XTOhOILJQ5ol53L4Pjg
4. Go To Playlists, Select Your Retirement Planning Videos
Employee Apps – Quick Links, click on eRetire –
• Contact HRSSC no earlier than 6 months prior to retirement.
• To avoid a gap in pay: For CSRS, if you retire on the last day or the first 3 days of the month your annuity will commence on the next day. For FERS, retirement commences on the 1st day of the month following the month of separation.
• HRSSC will request your annuity estimate & benefit packet to be mailed to your home.
• Review and complete the required forms and any optional forms. Also write down any questions that you have.
• Contact HRSSC (phone number will be provided in packet) to schedule retirement counseling.
• Retirement counseling are scheduled Monday-Friday, 7:00 a.m. – 7:30 p.m. EST
• Your counseling session date will be no sooner than 30 days from the date you requested your paperwork. It takes 30 days to get your OPF and validate your service history.
• Once this process has been completed, you will receive a 2nd mailing which includes your completed Certified Summary of Service and a self-addressed return envelope.
• You may decline a counseling session if you prefer and HRSSC will process your paperwork as received, contacting you only if additional information is needed. You will need to sign the declination of retirement counseling and return with your retirement paperwork.
• Once HRSSC has received all completed and signed forms, your retirement application will be forwarded through our payroll office in Eagan MN.
• Once Eagan submits your retirement application and payroll records to the Office of Personnel Management (OPM), who administers all federal pensions, you will receive a letter stating that your records were sent to OPM. This letter will contain the date & register number assigned to your application package.
• Once OPM receives the retirement file, they will send an acknowledgment letter and provide a Civil Service Annuity number (CSA number). Always refer to your CSA# when corresponding with OPM.
• OPM will review the retirement file for eligibility and then authorize interim annuity payments until the retirement claim process is completed. Interim payments are generally about 75% of the regular monthly payments. An adjustment check is sent when the case is completed. You should receive your 1st interim check one month after your annuity commences.
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