Critical Federal Retirement Choices

There are many major aspects of a federal worker’s retirement plan that deserves consideration.  With all of the options available in today’s world, it is easy to become overwhelmed and unsure about the proper path forward. 

Retirement comes down to a chain of choices.  Large or small, each decision ultimately effects one’s financial future. 

Here at Federal Benefits Service, we specialize in helping federal employees plan-for-and also achieve security not only in their careers, but also the subsequent retirement that follows. 

With that being said, below is a list of the important choices that federal employees face in retirement:

1. Medicare & FEHB

Remaining in good health typically leads to a great retirement. Nonetheless, the cost of healthcare is rising at an alarmingly fast rate. Luckily, federal health insurance will continue to cover workers for the rest of their lives without adding Medicare Part B and paying the additional Part B premium. 

It is a commonly held belief by federal employees that their FEHB coverage is simply enough to see them through retirement. This may be true, but that should not prevent workers from at least exploring what Medicare offers in order to learn every option available. In fact, sometimes it is beneficial to have both FEHB and Medicare part B in order to cover areas in between. 

A prime example of Medicare filling a gap otherwise left empty is that it can provide additional benefits beyond your FEHB coverage for things such as medical equipment, home health care during recovery from an illness or injury, and treatment for chronic conditions. Regardless of what combination of coverage is settled upon, it is imperative that the best resources are at hand in case of emergency.

2. Long-Term Care

With the cost of nursing homes on the rise, long-term care and loss of independence should be on the forefront of the minds of retirees.  When the time comes, federal employees will want to make sure they have a plan to pay for this coverage, if needed. 

On the authority of a recent report, 70% of adults over the age of 65 will need some kind of long-term care. Federal employees have the Federal Long Term Care Insurance Program (FLTCIP), in addition to multiple private insurance options. Qualification is required for both options listed above, so time is of the essence. 

Many federal workers are weary of paying too much for long-term care insurance, a program they feel they may never use. It is again important to remember that statistically, 70% of us will end up needing some sort of long-term care. Do not wait; explore the various functions of FLTCIP as well as other private products to decide which is best fit for your family’s needs. 

Wherever you are in your career, the right coverage under long-term care insurance will aid in protecting your retirement savings and assets in the event you or your loved ones ever need it.

3. Life Insurance

At the time of retirement, federal workers are required to consider how much they want to carry into retirement from Federal Employees Group Life Insurance (FEGLI) and how much they want to maintain past 65.  

It is important to understand where one wants to be financially after retirement and take into consideration the cost of living. 

Life insurance is based on two basic factors: 

1) how much insurance you are applying for, and 

2) your age and health. 

Worth noting is that life insurance becomes more expensive to acquire and sustain the older an individual becomes. With this in mind, federal employees should at least consider the merit of Basic FEGLI. On cost alone, it is usually worth keeping, despite any other need for different life insurance. 

Retirement planning does not have to be difficult or grim.  In fact, through proper preparation, retirement will be easy and enjoyable, carefree and full of joy. To learn more about retirement benefits, tips, and financial advice, please contact us to speak with a licensed agent and become a member today. 

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