Retirement Preparation: What Every Federal & Postal Worker Must Do
Are you a federal or postal employee wondering how to begin your retirement preparation journey? You’re not alone—and you don’t have to guess. This guide gives you clear, doable steps so you can feel confident as retirement approaches.
Why retirement preparation matters
Many people wait too long or follow general advice that doesn’t apply to federal or postal systems. But your benefits, systems, and rules differ from private-sector advice. If you prepare early and smartly, you’ll avoid surprises, get full value from your benefits, and step into retirement with peace of mind.
6 Clear Steps for Retirement Preparation
1. Know your benefit system inside out
As a federal or postal worker, you’re likely under FERS (Federal Employees Retirement System) or CSRS (if you were hired before 1984).
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Understand how your pension is calculated (years of service × “high-3” salary).
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Find out what your Social Security benefit will be.
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Know how the Thrift Savings Plan (TSP) fits in—this is like your retirement savings account.
If you know these well, you’ll see the full picture of your retirement income.
2. Estimate what you’ll need in retirement
Ask yourself: How much of today’s income will I need? A good rule is 70–90% of your pre-retirement income.
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Add health and long-term care costs (they often rise).
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Factor in inflation (costs creep upward over time).
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Build a buffer for surprises.
When you have a target, your saving strategy becomes clearer.
3. Max out your TSP and contributions
The TSP is your engine for growth. Many make the mistake of contributing too little.
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Try to contribute the maximum allowed (or as much as you can).
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Use catch-up contributions if you’re over 50.
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Diversify your investments within TSP — don’t keep all your eggs in one fund.
By doing this, you give your savings room to grow and balance risk.
4. Avoid common mistakes
Some errors can derail your retirement dreams. Here are the big ones for federal/postal employees:
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Delaying contributions too long
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Poor asset mix — too much in high-risk or all in one fund
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Wrong assumptions about benefit rules or survivorship
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Ignoring insurance and health costs
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Misjudging taxes or when to claim benefits
Watch out for those, and you’ll stay ahead.
5. Plan your income sources & withdrawal order
When you retire, you’ll likely rely on three sources:
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Your pension
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Your TSP and other savings
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Social Security
Think about the best order to draw from them so you pay less tax and stretch your money. Also, plan when to take Social Security (taking it too early reduces your monthly amount).
6. Review, adjust, and update each year
Life changes: promotions, health, family, tax law, etc.
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Every year, revisit your plan.
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Adjust contributions.
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Rebalance your TSP investments.
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Stay aware of new rules for federal benefits.
Keeping your plan alive keeps you in control.
How to Get Started—Right Now
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Sign into your federal benefits portal or TSP account.
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Run a retirement calculator (many are free).
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Set or increase your TSP contribution rate.
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Learn more about your pension formula / high-3 salary.
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Make a simple budget for how much you think you’ll need.
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Talk with The Benefit Coordinators team.
Why this approach works better than generic retirement tips
I reviewed top-ranking articles on general retirement planning (e.g. from NerdWallet) and federal-employee advice blogs. The general ones do well because they give step-by-step frameworks (like “5 steps to plan”) and use plain language. The federal-focused ones do well when they apply those steps to the federal systems (FERS, TSP, specific pitfalls) and highlight the mistakes unique to that group.
This blog combines both: it walks you through a universal planning path, but always in the context of your systems. That makes it more relevant and valuable to your life as a federal or postal employee.
Your Next Steps
If you’re ready to take control of your future, reach out to The Benefit Coordinators. We can help you review your benefit estimates, craft your savings plan, and make confident decisions about your retirement path.
Need help now? Start with:
Let’s get your retirement preparation on track—so when the day comes, you step forward calm, prepared, and confident.
