Understanding your FERS cost of living adjustment (COLA) is crucial for retirement planning. Unlike CSRS pensions that receive full CPI adjustments, FERS pensions follow a three-tier system that earns them the nickname “Diet COLA.”

But don’t let that fool you—your FERS pension with its inflation adjustments is still an incredibly valuable benefit, especially compared to private sector pensions with zero COLAs.

In this video, John breaks down:
-How FERS COLA calculations work (the three-tier system)
-When you’re eligible to receive COLA (age 62 rule and exceptions)
-How FERS compares to CSRS and private sector pensions
-The real financial impact of cost of living adjustments over a 30-year retirement
-Why your three-legged stool (FERS + Social Security + TSP) still puts you ahead

Key Takeaways:
1. Your FERS COLA may be “diet,” but it’s still a powerful inflation hedge.
2. Combined with Social Security COLAs and the flexibility of your TSP, you have significant control over your retirement income adjustments.

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