Retirement
Get the basics on retirement planning and pension benefits, such as how Social Security works, retiring from the civil service, and managing a private pension.
Determining a Target Retirement Saving Rate
Make a plan with the Retirement Saving worksheet: Link opens in a new windowhttps://www.askebsa.dol.gov/SavingsFitness/Worksheets. Learn more at Savings Fitness (PDF): Link opens in a new windowhttps://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/savings-fitness.pdf. You can also watch this video: Link opens in a new windowhttps://youtu.be/V-7ojClANHo.
Social Security and How It Works
Social Security provides you with a source of income when you retire or if you can't work due to a disability. It can also support your legal dependents (spouse, children, or parents) with benefits in the event of your death.
What's Social Security?
Social Security is a program run by the federal government. The program works by using taxes paid into a trust fund to provide benefits to people who are eligible. You'll need a Social Security number when you apply for a job.
How do benefits work and how can I qualify?
While you work, you pay Social Security taxes. This tax money goes into a trust fund that pays benefits to
- Those who are currently retired
- People with disabilities
- The surviving spouses and children of workers who have died
Each year you work, you'll get credits to help you become eligible for benefits when it's time for you to retire. There are four main types of benefits that the Social Security Administration (SSA) offers:
- Retirement benefits
- Disability benefits
- Benefits for spouses or other survivors of a family member who's passed
- Supplemental Security Income (SSI)
How to Open a "my Social Security" Account
If you receive or will receive Social Security benefits, you may want to open a "my Social Security" account: Link opens in a new windowhttps://www.ssa.gov/myaccount. This online account is a service from the SSA that allows you to keep track of and manage your SSA benefits. You can also make changes to your Social Security record.
How to Find More Help
If you have specific questions about your Social Security benefits, you can try these avenues:
- Review the SSA's frequently asked questions: Link opens in a new windowhttps://faq.ssa.gov/en-US.
- Contact the SSA directly: Link opens in a new windowhttps://www.ssa.gov/agency/contact.
Protecting Your Private Pension Benefits
Read up on how to correct calculation errors. Find out if your pension is covered if the company defaults. See if there's an unclaimed pension owed to you or someone you know.
Avoid errors in pension calculation, and get help fixing them.
If your job is covered by a traditional pension plan, make sure you get the pension amount you're owed:
- Find ways to protect yourself. Read these 10 common causes of errors in pension calculation: Link opens in a new windowhttps://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/10-common-causes-of-errors-in-pension-calculation.
- Get free legal help if you're experiencing a problem with your pension plan: Link opens in a new windowhttps://www.pensionrights.org/find-help.
- Find out whether your pension or annuity income is taxable: Link opens in a new windowhttps://www.irs.gov/forms-pubs/about-publication-575.
- For questions or complaints about your plan, contact your human resources (HR) office, or contact the Employee Benefits Security Administration (EBSA) regional office near you: Link opens in a new windowhttps://www.dol.gov/agencies/ebsa/about-ebsa/about-us/regional-offices.
Federal Insurance for Private Pensions
If your company runs into financial problems, you're likely to still get your pension. The Pension Benefit Guaranty Corporation (PBGC, Link opens in a new windowhttps://www.pbgc.gov)
- Insures most private-sector defined-benefit pensions—These are plans that typically pay a certain amount each month after you retire. (These are single-employer plans. Multi-employer plans have different coverage.)
- Covers most cash-balance plans—Those are defined-benefit pensions that allow you to take a lump-sum distribution.
- Does not cover government and military pensions, 401(k) plans, IRAs, and certain others
Is your pension insured?
- Search the PBGC's database of insured plans: Link opens in a new windowhttps://www.pbgc.gov/search-insured-plans.
- If your plan is insured and it ends without enough money to pay all benefits, the PBGC steps in. The PBGC will pay you the money you're owed, up to the legal limits: Link opens in a new windowhttps://www.pbgc.gov/wr/benefits/guaranteed-benefits.
- To learn more about PBGC-insured pensions, view these frequently asked questions: Link opens in a new windowhttps://www.pbgc.gov/about/faq.
Find an unclaimed pension.
More than 80,000 people in the U.S. haven't claimed pension benefits they have earned. Find out if you, or someone you know, is owed a pension: Link opens in a new windowhttps://www.pbgc.gov/about/pg/contact/contact-unclaimed.
Civil Service Retirement
If you've retired from the federal government or plan to, get to know the Office of Personnel Management (OPM)'s retirement services: Link opens in a new windowhttps://www.opm.gov/retirement-services. You can contact them for help with your federal retirement benefits: Link opens in a new windowhttps://www.opm.gov/support/retirement/contact.
Federal Employee Retirement Planning and Management
The OPM has information to help you with the following:
- Learn about retirement options: Link opens in a new windowhttps://www.opm.gov/retirement-services/federal-employees.
- Find answers to common questions about federal retirement: Link opens in a new windowhttps://www.opm.gov/retirement-services/retirement-faqs.
- Manage your benefits online: Link opens in a new windowhttps://www.servicesonline.opm.gov.
Thrift Savings Plan for Current Employees
As a current federal employee, you can contribute to the Thrift Savings Plan (TSP). The TSP offers the same types of savings and tax benefits as a 401(k) plan: Link opens in a new windowhttps://www.tsp.gov.
Retirement Credit for Military Service
Military service does not automatically count toward civil service retirement. To receive credit for military service performed after 1956, you must pay a deposit.
Federal Taxes on Government Pensions
Your pension or annuity payment may be taxable. Find out with the online tool Is My Pension or Annuity Payment Taxable?: Link opens in a new windowhttps://www.irs.gov/help/ita/is-my-pension-or-annuity-payment-taxable.
Survivors of Federal Employees and Retirees
If you're the survivor of a federal employee or retiree, you may qualify for death and survivor benefits. Visit the OPM website to report the death of a federal employee or retiree and apply for death benefits: Link opens in a new windowhttps://www.opm.gov/retirement-services/my-annuity-and-benefits/life-events/death/report-of-death.
USA.gov. (Updated 2022, March 29). Retirement. Retrieved May 22, 2022, from https://www.usa.gov