What Does the Federal Pay Increase Mean for your Retirement Plan

Civilian federal employees will see an additional 0.5% bump in their paychecks in 2017, according to Government Executive. This raise comes as a surprise to many. Earlier this year, President Obama proposed a 1.6% pay increase. That amount has now increased to 2.1%. Pressure from federal employee unions and members of congress were likely motivators. The pay increase for civilian federal employees will now match that of the pay increase for military personnel.

What does this pay raise mean for your retirement?

If you haven’t done so already, it’s a good idea to start thinking about planning for retirement. Taking your retirement into your hands is one of the most important things you can do for your future, which is why it’s critical to start the process as early as possible. By implementing the proper key components you can guarantee yourself a financially secure retirement and ensure a better quality of life for you and your dependents down the road.

Unfortunately, it’s not just about saving but HOW you save. There are a wealth of options when it comes to retirement, and it’s important to know what they are. However, with the sheer quantity of information out there, much of it written in dense language, coupled by the fact that there are so many variables, understanding your options can be difficult. Taking the steps to ask questions is a key component of learning every aspect of your retirement. That’s where we come in! Our job is to breakdown the numbers and help you achieve a clear understanding of your post-retirement life before you even get there.

For more information about retirement planning, contact a MyFEDBenefits counselor or schedule a free benefits review. We’ll help you put the right plan in place to achieve a comfortable retirement and guide you through the process.