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Federal Employee Financial Planning: FERS Part 2 (EP6)

The Federal Employees Retirement System (FERS) is not just a retirement system. It’s a disability policy, a life insurance policy, and it’s a cash accumulation vehicle. FERS is one of the most important benefits you receive as a federal employee, and its flexibility allows you to choose what is best for your individual situation. In this episode, Michael, Tommy, and John will be discussing how to utilize both FERS and Social Security benefits in your retirement.

Listen in as they compare FERS to the Social Security System, including the cost and benefit of both. You will learn the difference between CSRS and FERS, how FERS is taxed in retirement, and the importance of signing up for survivor benefits.

Listen to the full episode here:

What you will learn:

  • The difference between FERS and TSP. (1:49)
  • Why someone might decline survivor benefits. (3:50)
  • The cost difference between FERS and the Social Security System. (7:20)
  • How FERS is taxed. (8:50)
  • How your Social Security is impacted. (11:15)
  • The difference between CSRS and FERS. (17:25)
  • What benefits your spouse can receive through FERS. (23:30) 

Ideas worth sharing:

“FERS, like any great government retirement system, is going to allow you to retire at a young age.” - Mason & Associates, LLC

“Most states are going to tax your federal retirement benefits.” - Mason & Associates, LLC

“You get the best of both worlds when you use a little bit of FERS and a little bit of Social Security.” - Mason & Associates, LLC 

Resources from this episode:


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