Federal Retirement Calculator

Federal Retirement Income Calculator

Estimate your potential annual retirement income from FERS, TSP, and Social Security.

function calculateFederalRetirement() { var currentAge = parseFloat(document.getElementById("currentAge").value); var retirementAge = parseFloat(document.getElementById("retirementAge").value); var serviceYears = parseFloat(document.getElementById("serviceYears").value); var high3Salary = parseFloat(document.getElementById("high3Salary").value); var currentTSPBalance = parseFloat(document.getElementById("currentTSPBalance").value); var currentAnnualSalary = parseFloat(document.getElementById("currentAnnualSalary").value); var employeeTSPRate = parseFloat(document.getElementById("employeeTSPRate").value) / 100; var tspGrowthRate = parseFloat(document.getElementById("tspGrowthRate").value) / 100; var socialSecurityBenefit = parseFloat(document.getElementById("socialSecurityBenefit").value); // Input validation if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(serviceYears) || isNaN(high3Salary) || isNaN(currentTSPBalance) || isNaN(currentAnnualSalary) || isNaN(employeeTSPRate) || isNaN(tspGrowthRate) || isNaN(socialSecurityBenefit) || currentAge <= 0 || retirementAge <= 0 || serviceYears < 0 || high3Salary < 0 || currentTSPBalance < 0 || currentAnnualSalary < 0 || employeeTSPRate < 0 || tspGrowthRate < 0 || socialSecurityBenefit < 0) { document.getElementById("fersAnnuityResult").innerText = "Please enter valid positive numbers for all fields."; document.getElementById("tspBalanceResult").innerText = "$0.00"; document.getElementById("tspWithdrawalResult").innerText = "$0.00"; document.getElementById("socialSecurityResult").innerText = "$0.00"; document.getElementById("totalRetirementIncome").innerText = "$0.00"; return; } if (retirementAge = 62 && serviceYears >= 20) { fersMultiplier = 0.011; // 1.1% if retiring at 62+ with 20+ years of service } var annualFERSAnnuity = high3Salary * serviceYears * fersMultiplier; // 2. Calculate Projected TSP Balance var yearsUntilRetirement = retirementAge – currentAge; var projectedTSPBalance = currentTSPBalance; // Future value of current balance projectedTSPBalance *= Math.pow(1 + tspGrowthRate, yearsUntilRetirement); // Calculate annual contributions (employee + agency) var agencyMatchRate = 0; if (employeeTSPRate >= 0.01) { agencyMatchRate += 0.01; // 1% for first 1% } if (employeeTSPRate > 0.01) { agencyMatchRate += Math.min(employeeTSPRate – 0.01, 0.04) * 0.5; // 0.5% for next 4% } var totalAgencyContributionRate = 0.01 + agencyMatchRate; // 1% automatic + calculated match var totalAnnualContribution = currentAnnualSalary * (employeeTSPRate + totalAgencyContributionRate); // Future value of annual contributions (annuity future value formula) if (tspGrowthRate > 0) { var futureValueContributions = totalAnnualContribution * ((Math.pow(1 + tspGrowthRate, yearsUntilRetirement) – 1) / tspGrowthRate); projectedTSPBalance += futureValueContributions; } else { // If growth rate is 0, just add total contributions projectedTSPBalance += totalAnnualContribution * yearsUntilRetirement; } // 3. Estimated Annual TSP Withdrawal (using 4% rule) var annualTSPWithdrawal = projectedTSPBalance * 0.04; // 4. Total Estimated Annual Retirement Income var totalAnnualRetirementIncome = annualFERSAnnuity + annualTSPWithdrawal + socialSecurityBenefit; // Display results document.getElementById("fersAnnuityResult").innerText = "$" + annualFERSAnnuity.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("tspBalanceResult").innerText = "$" + projectedTSPBalance.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("tspWithdrawalResult").innerText = "$" + annualTSPWithdrawal.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("socialSecurityResult").innerText = "$" + socialSecurityBenefit.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("totalRetirementIncome").innerText = "$" + totalAnnualRetirementIncome.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); } // Calculate on page load with default values window.onload = calculateFederalRetirement;

Understanding Your Federal Retirement Benefits

Planning for retirement is a critical step for all federal employees. The Federal Employees Retirement System (FERS) provides a comprehensive retirement package, typically consisting of three main components: the FERS Basic Annuity, the Thrift Savings Plan (TSP), and Social Security benefits. This calculator helps you estimate your potential annual income from these sources, giving you a clearer picture of your financial future.

The Three Pillars of FERS Retirement

1. FERS Basic Annuity

The FERS Basic Annuity is a defined benefit plan, meaning it provides a guaranteed income stream in retirement. Your annuity amount is primarily determined by three factors:

• Years of Creditable Service: The total number of years you've worked under FERS.
• High-3 Average Salary: The highest average of your basic pay earned during any 3 consecutive years of service. This is often your most recent three years of highest earnings.
• Multiplier: This is typically 1% for each year of service. However, if you retire at age 62 or later with at least 20 years of service, the multiplier increases to 1.1% per year of service.

Formula: (High-3 Average Salary) × (Years of Creditable Service) × (Multiplier)

Our calculator uses your input for "Years of Creditable Service," "High-3 Average Salary," and "Age at Retirement" to determine the correct multiplier and calculate your estimated annual FERS annuity.

2. Thrift Savings Plan (TSP)

The TSP is a defined contribution plan, similar to a 401(k), allowing federal employees to save for retirement on a tax-deferred basis. It includes both employee contributions and agency contributions:

• Employee Contributions: You can contribute a percentage of your basic pay each pay period.
• Agency Automatic 1% Contribution: Your agency automatically contributes an amount equal to 1% of your basic pay to your TSP account, even if you don't contribute yourself.
• Agency Matching Contributions: Your agency matches your contributions dollar-for-dollar for the first 1% of pay you contribute, and then 50 cents on the dollar for the next 4% of pay you contribute. To receive the full 5% agency contribution (1% automatic + 4% matching), you must contribute at least 5% of your basic pay.

Our calculator projects your TSP balance at retirement by considering your current balance, your annual contributions (employee + agency), and an expected annual growth rate over your remaining working years. It then estimates an annual withdrawal amount using the common 4% rule, which suggests withdrawing 4% of your balance each year to make your savings last through retirement.

3. Social Security Benefits

As a federal employee under FERS, you also contribute to and are eligible for Social Security benefits, just like most private sector workers. The amount you receive depends on your earnings history and the age at which you begin collecting benefits. Your full retirement age (FRA) for Social Security varies based on your birth year.

For this calculator, we ask for your "Estimated Annual Social Security Benefit (at Full Retirement Age)." You can typically find this estimate on your annual Social Security Statement, which you can access through your account on the Social Security Administration website.

How to Use the Calculator

Simply input your personal financial and service details into the fields provided:

• Current Age & Age at Retirement: These determine your years until retirement.
• Years of Creditable Service: Your total FERS service.
• High-3 Average Salary: Your highest average basic pay over 3 consecutive years.
• Current TSP Balance: Your current savings in your TSP account.
• Current Annual Salary: Used to project future TSP contributions.
• Employee TSP Contribution Rate (%): The percentage of your salary you contribute to TSP.
• Expected Annual TSP Growth Rate (%): Your anticipated average annual return on TSP investments.
• Estimated Annual Social Security Benefit: Your personal estimate from the SSA.

Click "Calculate Retirement Income" to see your estimated annual income from each component and your total projected annual retirement income.

Important Considerations

This calculator provides an estimate and should be used as a planning tool. Several factors can influence your actual retirement income:

• Inflation: The purchasing power of your retirement income may decrease over time due to inflation.
• Taxes: Your FERS annuity, TSP withdrawals, and Social Security benefits may be subject to federal and state income taxes.
• Healthcare Costs: Medicare premiums and other healthcare expenses can be significant in retirement.
• Investment Performance: Actual TSP returns may vary from your estimated growth rate.
• Policy Changes: Retirement rules and benefits can change over time.

For personalized advice and a comprehensive retirement plan, it is always recommended to consult with a qualified financial advisor specializing in federal benefits.