Sharon Alford

Houston, Texas

Ms. Alford is a Federal Retirement Counsultant for the year of 2024.

Sharon is a native Texan. She enlisted in the United States Navy immediately following high school and proudly served her country for five years as an Air Traffic Controller. While serving in the Navy, Sharon began her college education in Whidbey Island, Washington and continued her studies on nights and weekends while working and raising her children for the next 26 years. Her studies spanned over three different states and five different colleges but she finally received her bachelor’s degree from the University of Houston in 2010.

Sharon Alford has been serving Federal Employees in the Houston area with their insurance needs since 2014. Once joining The Benefit Coordinators, she has expanded her areas of service to include the entire United States. As an independent contractor of Aflac®, she has also been instrumental in bringing these benefits under The Benefit Coordinators “Supplemental Programs.” With her life and health insurance license, she has been able to serve her clients with finding the “right fit” for them in their insurance needs. Her integrity, “customer-first” mentality, and superior customer service (at the sale and beyond) has gained her hundreds of loyal clients.

Sharon chose to enlarge her portfolio to include retirement financial needs after her father retired without any benefits outside of social security. Her father was under hospice care until he sadly passed in December 2019 and she served as his Power-of-Attorney, handling all his financial and medical affairs. She understands, firsthand, how NOT preparing for your retirement years can affect, not only you, but your loved ones, as well. Her experience over the years of caring for her father has deeply ingrained in her a passion for assisting, educating, and implementing retirement plans for her clients. Ms. Alford is a Federal Retirement Consultant℠ and is authorized by the Federation of Federal Employee Benefit Advocates to provide consultation to all federal employees.

Ms. Alford is licensed to serve the needs of federal employees throughout the United States and is available for formal classroom education and training for benefits, as well, as more private individual consultations.

Aflac agents are independent agents and are not employees of Aflac. Aflac includes Aflac and/or Aflac New York.

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Schedule a Meeting with Sharon

FERS Retirement Plan: A Simple Guide for Federal Workers

Are you a federal or postal employee wondering how to make the most of your FERS retirement plan? Planning for retirement might seem overwhelming, but it doesn’t have to be. With the right information, you can feel confident about your future. In this guide, we’ll break down the essentials of the Federal Employees Retirement System (FERS) and show you how to prepare for a comfortable retirement.

What Is the FERS Retirement Plan?

The Federal Employees Retirement System (FERS) is a retirement plan designed for federal and postal employees. It provides a reliable foundation for your financial future, combining three key components:

  1. FERS Basic Benefit: This is a monthly pension based on your salary and years of service.
  2. Thrift Savings Plan (TSP): A retirement savings account similar to a 401(k), where you can grow your savings through investments.
  3. Social Security Benefits: Federal employees covered by FERS also contribute to Social Security and receive benefits during retirement.

How Does the FERS Basic Benefit Work?

The FERS Basic Benefit is the backbone of your retirement income. It’s calculated using a simple formula:

Annual Benefit=Years of Service×High-3 Salary Average×Multiplier\text{Annual Benefit} = \text{Years of Service} \times \text{High-3 Salary Average} \times \text{Multiplier}

  • High-3 Salary Average: The average of your highest-paying three years.
  • Multiplier: Typically 1% for most employees, or 1.1% if you retire at age 62 or later with at least 20 years of service.

For example, if you worked 30 years, earned a high-3 average of $80,000, and retired at 62, your annual pension would be:

30×80,000×1.1%=$26,400 annually30 \times 80,000 \times 1.1\% = \text{\$26,400 annually}

Why the Thrift Savings Plan (TSP) Matters

The Thrift Savings Plan (TSP) is another key piece of your FERS retirement plan. This tax-advantaged account helps you grow your retirement savings. Here’s why it’s so valuable:

  • Matching Contributions: Your agency matches up to 5% of your contributions. Don’t miss out on this free money!
  • Tax Savings: Choose between traditional TSP (pre-tax) or Roth TSP (after-tax) to optimize your tax strategy.
  • Investment Options: TSP offers low-cost funds to grow your savings over time.

Pro Tip: Start contributing early and aim to contribute at least 5% to take full advantage of the matching contributions.

How Social Security Fits In

As a FERS employee, you’re also eligible for Social Security benefits. These provide additional income to support your retirement. Your benefit amount depends on:

  • Your lifetime earnings.
  • The age you start collecting benefits (full retirement age is typically 67, but you can start as early as 62 with reduced benefits).

Actionable Tip: Check your Social Security statement annually at SSA.gov to track your projected benefits.

Maximizing Your FERS Retirement Plan

To make the most of your FERS retirement plan, consider these actionable steps:

1. Understand Your Retirement Eligibility

Your retirement eligibility depends on your age and years of service. Common scenarios include:

  • Immediate Retirement: At least 30 years of service at age 55 (MRA) or 20 years at age 60.
  • Early Retirement: Available during major downsizing events (check with your HR office).

2. Calculate Your Retirement Income

Use the FERS retirement calculator on OPM.gov to estimate your benefits. Include your TSP and Social Security for a complete picture.

3. Save Aggressively in Your TSP

Max out your TSP contributions if possible. For 2024, the annual limit is $22,500, with an additional $7,500 for those 50 and older.

4. Plan for Health Benefits in Retirement

Your Federal Employees Health Benefits (FEHB) program can carry into retirement, offering comprehensive health coverage. Ensure you’ve been enrolled for at least five years before retiring.

FAQs About the FERS Retirement Plan

How Much Will I Need to Retire Comfortably?

A common rule of thumb is to aim for 70–80% of your pre-retirement income. Combine your FERS pension, TSP, and Social Security to reach this goal.

Can I Withdraw from My TSP Early?

Yes, but penalties may apply if you withdraw before age 59½. Check the TSP website for withdrawal options and exceptions.

Is FERS Better Than CSRS?

FERS is more flexible and includes Social Security and TSP benefits, while CSRS offers a higher pension but no Social Security or TSP.

Plan Your Retirement with Confidence

The FERS retirement plan is a powerful tool to help federal and postal employees achieve financial security in retirement. By understanding the basics, maximizing your TSP contributions, and planning ahead, you can retire with peace of mind.

Ready to start planning? Contact The Benefit Coordinators today for personalized guidance tailored to your federal benefits.