Federal retirement is full of small decisions that can create very large financial consequences.
A slightly wrong retirement date, poor TSP timing, or missing FEHB eligibility can cost thousands over time.
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1) Choosing the Wrong Retirement Date
A poor date can impact:
- Pension timing
- Leave payout
- FEHB eligibility
- Taxes
Even a small shift can make a big difference.
2) Misunderstanding Your High-3
Many people overestimate their pension by including:
- Overtime
- Bonuses
Only basic pay + locality counts.
3) Missing the FEHB 5-Year Rule
Without it, you may lose FEHB in retirement.
That can mean:
- Higher healthcare costs
- Private insurance reliance
4) Ignoring Military Buyback
Veterans often miss:
- Increased pension
- Fast break-even timelines
This is one of the strongest financial moves available.
5) Taking Too Much from TSP Too Early
Early withdrawals can:
- Increase depletion risk
- Hurt long-term income
Especially dangerous before Social Security begins.
6) Starting Social Security Too Early
Taking benefits at 62 reduces lifetime income.
Sometimes delaying:
- Increases income
- Improves survivor benefits
7) Treating Each Benefit Separately
Biggest mistake of all.
You must combine:
- FERS
- TSP
- Social Security
- VA disability
Into one plan.
Example of Compounding Mistakes
Someone who:
- Retires too early
- Starts SS at 62
- Withdraws too much TSP
May end up with:
- Lower income
- Higher risk
- Reduced lifetime benefits
What to Do Next
Compare everything together:
Check:
- Retirement dates
- Income sources
- Withdrawal strategies
- Healthcare timing
Disclaimer
Educational only. Confirm with professionals before making decisions.