Don’t Roll the Dice on Your Retirement

Are you overestimating your chances of securing the retirement you desire?

If we take off our rose-colored glasses and look at the cold, hard numbers, the answer to that question is more than likely, yes, you are.

According to the U.S. Government Accountability Office, studies have found that anywhere from 1/3 to 2/3 of American workers are at risk of maintaining their pre-retirement standard of living in retirement.

In everyday language, that translates into a severe cutback in expenses — and a potentially significant reduction in spending beyond what is necessary.

The GAO found that part of that is due to poor retirement planning: About half of American households (age 55 and older) do not have any retirement savings, like 401(k) plans or IRAs.

And of the other half that do have some form of retirement savings or investments, some did not pour enough money into those investments to give them sufficient earnings to get the standard of living they desired (through those rose-colored glasses).

As you know as a federal worker, you are ahead of most of your peers in the private sector when it comes to your retirement package.

You are guaranteed a basic annuity (a pension); like everyone else in the American workforce, you will receive earnings from Social Security; and you can voluntarily invest in a government-sponsored investment account, the Thrift Savings Plan, which the government will make automatic contributions to as well as matching your contributions.

However, will these investment options help you secure the retirement you desire and bridge the retirement gap (near equal or equal pre-retirement and post-retirement earnings)?

Maybe. Or maybe not.

That depends on the actions you take, like how much money you invest and when; your earnings; the performance of your Thrift Savings Plan investments; and other unknowns such as whether there will be cuts in Social Security benefits.

It’s a complicated picture — and often not as pretty as when you are looking at it behind those tinted shades when you start mulling over the gritty details and numbers.

But we can help you overcome these challenges. Our specialists will help you evaluate you options, including your current federal benefits, and depending on your situation and goals recommend alternatives that will complement your federal benefits package.

We encourage you to contact them today for a free consultation. We’ll simplify the complexities of investing and retirement planning and help you get a clear picture of where you stand today and where you hope to go.