You go through several facts in your daily life. Some of them are interesting but don’t make any difference in your life whether or not you know them. After all, when it comes to federal retirement, federal employees should know these facts about federal retirement. These facts may be a subject of discussion for many on weekends.
Moreover, below we have included some fun facts about federal retirement you will want to know. If you are worried about federal government retirement benefits and pension plans, these facts may be beneficial for you.
The federal retirement system is about 100 years old
Do you know the federal retirement system is almost 100 years old? The single mandatory retirement age of 70 was created in 1920 under an act. In the beginning, retirement was not permitted except for disability. But in 1922, a retroactive provision came into force enabling discontinued service retirement at age 55 with 15 years of service. If we talk about the basic annuity, it was 60% of the final 10-year average salary. Moreover, if you are not clear about civil service retirement benefits for federal employees, you can consult professionals in your area.
Withdraws from conventional TSP accounts are taxed as ordinary income.
Conventional TSP withdrawals are a part of your other income that is taxed with ordinary federal rates. In addition to it, you need to keep yourself aware of the 10% tax penalty if you make any early withdrawals due to resigning or taking an early retirement before age 55. After all, to know more about federal government retirement benefits and pension plans, you can consult a professional federal retirement planner in your area.
People are working longer.
As of 2014, the total workforce, including men and women, was 23% and 15%, respectively. The age of male and female individuals was 65 and older. The total workforce is supposed to increase in the upcoming years. If we talk about the study of the Census Bureau, the nation’s 90 and older population has almost tripled over the previous four decades. After all, federal employees should keep themselves aware of the advantages of lifetime pensions and health insurance. To know more about civil service retirement benefits for federal employees, you can call a professional federal retirement planner in your area. That’s all. These are some facts about federal retirement you need to know.