Federal Employee Retirement Planning
FERS, the TSP, FEHB and Social Security each have their own rules and deadlines. We bring them together in one retirement plan.
Fiduciary advice for federal employees across Virginia, Washington, D.C. and Maryland, from our office in Vienna, Virginia.
FERS & TSP Retirement Planning
for Federal Employees
From your retirement date and survivor benefit election to TSP withdrawals and FEHB, we help you make the federal decisions that are hard to undo, and coordinate them with the rest of your finances.
BOOK A CALL →The Decisions That Shape a Federal Retirement
Choosing Your Retirement Date
Your Minimum Retirement Age (55 to 57, depending on birth year) and years of service decide whether you leave with an unreduced pension, the FERS supplement or a reduction. MRA+10, 60 with 20 years and 62 with 5 each lead to a different income for life, so we model each date before you file.
FERS Pension & Survivor Benefit
The basic pension is generally 1% of your high-3 salary per year of service, or 1.1% at 62 or later with 20 years. A full survivor benefit costs 10% of the pension, a partial one 5%, and the choice is hard to reverse.
TSP Withdrawals & Rollovers
Installments, partial withdrawals, an annuity or a rollover to an IRA: each changes your taxes, flexibility and investment choices. We plan the order of withdrawals across the TSP, IRAs and taxable accounts, including required minimum distributions.
FEHB, FEGLI & Medicare
To keep FEHB in retirement you generally need five years of coverage before you retire. We help you decide whether to add Medicare Part B at 65 and what to keep or drop from FEGLI as your needs change.
Social Security & the FERS Supplement
The FERS supplement bridges the years to 62 for those who qualify, but it is cut if you keep earning above the Social Security limit. We coordinate it with when you claim Social Security and with your pension's cost-of-living adjustments.
The Federal Retirement Time Machine
Pick the year you retire and live through the markets that actually followed. Your FERS pension and Social Security cover part of your spending; the TSP and other savings cover the rest. Then meet your twin: same returns, in reverse order.
Retiring in 2026? Your first year isn't written yet. See how the hardest starts in history played out: or
Your FERS basic pension, Social Security and any other pension. The TSP and savings cover the rest: of savings in year one.
Fixed: the same spending every year, raised with inflation, no matter what markets do.
History cannot tell you which twin you will be. A plan can decide in advance what you will do in either case.
Hypothetical illustration using historical annual returns of the S&P 500 with dividends and 10-year U.S. Treasury bonds (Damodaran, NYU Stern) and CPI inflation (BLS), 1928–2025. Amounts are shown in dollars of your retirement year. Portfolios are rebalanced yearly; withdrawals are taken at the start of each year; guaranteed income is assumed to keep pace with inflation (FERS cost-of-living adjustments can be smaller than inflation and are generally not paid before 62). Indexes cannot be invested in directly; fees and taxes are not included. Past performance does not guarantee future results. This is not investment advice.
Federal Retirement: Common Questions
When can I retire under FERS?
You can retire with an unreduced pension at your Minimum Retirement Age (55 to 57, depending on your birth year) with 30 years of service, at 60 with 20 years, or at 62 with 5 years. At your MRA with 10 to 29 years you can retire with a pension reduced by 5% for each year you are under 62, unless you postpone it. The best date also depends on the FERS supplement, FEHB and your other savings.
How is the FERS pension calculated?
Generally 1% of your high-3 average salary for each year of creditable service, or 1.1% if you retire at 62 or older with at least 20 years. Electing a survivor benefit reduces the pension by 10% for a full benefit or 5% for a partial one.
What is the FERS supplement?
A payment that approximates the Social Security benefit earned during federal service. It is paid from retirement until age 62 to those who retire on an immediate, unreduced pension before 62, for example at MRA with 30 years or at 60 with 20. It is reduced if your earnings exceed the Social Security earnings limit.
Should I roll my TSP into an IRA when I retire?
Not automatically. The TSP has very low costs and allows partial and installment withdrawals; an IRA offers more investment choice and estate planning flexibility. We compare both for your situation, including taxes and required minimum distributions.
Can I keep FEHB in retirement?
Generally yes, if you retire on an immediate pension and were enrolled in FEHB for the five years before retirement, or continuously since you were first eligible. Your FEHB plan also affects whether Medicare Part B makes sense at 65.
Do you work only with federal employees in Virginia?
No. Sovereign Wealth Management is a fiduciary Registered Investment Adviser based in Vienna, Virginia. We work with federal employees and retirees across Virginia, Washington, D.C. and Maryland, in person or by video.
Educational information only, not tax, legal or investment advice. Federal benefit rules depend on your service history and can change; confirm your figures with your agency's benefits office or OPM.
Acquire More Actionable Insights
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A Bad First Decade Costs More Than a Bad Average
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Sovereign Wealth Management, LLC ("Adviser") has adopted a Business Continuity Plan ("BCP") pursuant to the Investment Advisers Act and the rules and guidance of the U.S. Securities and Exchange Commission ("SEC") and/or the laws of Virginia where the Adviser is registered. The purpose of the BCP is to define the strategies and plans that will be used by Adviser during a significant business disruption ("SBD"). The BCP is prepared to address both internal SBDs, such as a fire in Adviser's building, and external SBDs, such as a natural disaster, terrorist attack, or citywide power disruption.
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