How to Calculate Your FERS Retirement Benefit

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We set the default rate for prior to retirement at 5. 75% and rate of return after retirement at 4. 0% with a valid variety of 0% to 20% for each. You must select presumptions-- or series of assumptions-- that are right for you based on your particular scenarios. Replacement Rate Calculation The amount of money from your retirement benefits (e.

CSRS, FERS, Social Security), annuities from TSP and other cost savings, and any post-retirement incomes you got in are summed over the anticipated years in retirement. The amount of cash you would have made (with forecasted raises) if you continued to work rather than retire is also summed up over the exact same time period.

Chapter 3, Section 4: Computation of CSRS and FERS Benefits --  FederalSoup.com

FERS Annuity Calculations - Plan Your Federal Retirement

If the calculated replacement rate is less than the desired replacement rate, the TSP contribution rate is increased bit by bit (0. 25% of wage) until the estimation comes out to the replacement rate objective or it strikes the tax deferral limit (presently $17,000). If that isn't adequate money, the Federal Ballpark E$ timate does the very same with the non-TSP cost savings till the combined overall suffices to strike your replacement rate goal, or an outright limit of 50% of income is reached.

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What this implies is that the FBE will take the variety of years you anticipate to live in retirement and balance the replacement rate during that time.  Read This  utilizes 70% as a default rate, however will allow you to choose any rate in between 20% and 120%. Replacement Rate Desired The replacement rate is the portion of your pre-retirement income that will be changed by your retirement earnings.