Federal Pension Advice and Insights

Jun 26, 2026

Taxes on federal retirement income include the federal and state taxes that may apply to a retired federal employee's main income streams: FERS pension, TSP withdrawals, and Social Security benefits. Most of this income is taxed as ordinary income. Each source follows its own rules, and coordinating them is where retirees may reduce or increase their lifetime tax bill significantly.

Jun 25, 2026

Your FERS pension comes down to one formula: High-3 average salary × years of creditable service × a multiplier of 1% (or 1.1%). FERS, the Federal Employees Retirement System, covers most federal employees first hired after December 31, 1983, with full FERS becoming effective January 1, 1987.

Jun 22, 2026

Many federal employees with strong pension and Thrift Savings Plan income can raise their lifetime income by delaying Social Security until full retirement age or age 70.

Jun 19, 2026

The 2026 federal tax brackets apply to income earned from January 1, 2026, through December 31, 2026. You will use these rates when filing your 2026 federal income tax return in early 2027.

Jun 18, 2026

The best states to retire for federal employees in 2026 include Pennsylvania, Mississippi, Iowa, Illinois, Florida, Tennessee, Wyoming, South Dakota, Nevada, Texas, Alabama, and New Hampshire.

Jun 17, 2026

Here are the TSP funds explained simply. The Thrift Savings Plan (TSP) is the federal government's tax-advantaged retirement savings program. It offers five core investment funds: the G Fund (government securities), the F Fund (fixed-income bonds), the C Fund (large U.S. companies), the S Fund (small and mid-sized U.S. companies), and the I Fund (international stocks).

Jun 16, 2026

As of June 16, 2026, the 2027 federal employee pay raise has not been finalized. The FAIR Act proposes an average 4.1% raise for civilian federal employees, including a 3.1% across-the-board increase and an average 1.0% locality pay increase.

Jun 15, 2026

As of the latest available May 2026 CPI-W data, the running 2027 COLA estimate is approximately 3.6%. This is not the final COLA. The official 2027 COLA will be based only on the average CPI-W readings for July, August, and September 2026, compared with the Q3 2025 average.

Jun 12, 2026

To meet FEHB retirement eligibility, you must retire on an immediate annuity and stay continuously enrolled in the Federal Employees Health Benefits (FEHB) program, the federal government's health insurance system, for the five years right before your annuity begins. If your service is shorter, you must have been covered for your entire period of service since your first chance to enroll.

Jun 11, 2026

The FERS supplement goes only to federal employees who retire on an immediate, unreduced annuity before age 62. You can reach it through one of three paths: your Minimum Retirement Age (MRA) with at least 30 years of service, age 60 with at least 20 years of service, or a special-category role such as law enforcement officer or firefighter.

Jun 10, 2026

Federal early retirement in 2026 means leaving federal service before standard age and service thresholds using two tools: VERA, the Voluntary Early Retirement Authority, and VSIP, the Voluntary Separation Incentive Payment.

Jun 9, 2026

A mid-year TSP check-up is a contribution review you run around June or July to confirm your year-to-date Thrift Savings Plan (TSP) deposits are on pace to hit your 2026 target by the final pay period. Half the year's pay periods are now behind you.