17 Feb Federal Retirement Planning: A Complete Guide for Southwest Florida Employees and Retirees

Federal Retirement Planning: A Complete Guide for Southwest Florida Employees and Retirees

Federal employees have access to one of the most structured and comprehensive retirement systems in the country — but maximizing its benefits requires planning, coordination, and a deep understanding of how the different pieces fit together.

Whether you live in Bonita Springs, Naples, Marco Island, Estero, Fort Myers, or are relocating to Southwest Florida for retirement, thoughtful planning can turn your federal benefits into a confident, sustainable retirement strategy.

At Nova Wealth Management, we help federal workers and retirees organize their income streams, manage taxes, integrate survivor and insurance benefits, and coordinate everything with personal savings and legacy goals.

1. Understanding Your Federal Retirement System

Every federal employee falls under one of two main systems:

A) FERS (Federal Employees Retirement System)

Most current federal employees are part of FERS, which includes:

• FERS Basic Benefit (pension)

• Thrift Savings Plan (TSP)

• Social Security

B) CSRS (Civil Service Retirement System)

An older system, primarily for employees hired before 1984:

• Larger pension

• No participation in Social Security under standard rules

• TSP participation optional

Knowing which system you’re part of is the foundation of your retirement plan.

→ Learn more:
Federal Retirement Planning

2. The FERS Basic Benefit (Your Pension)

Your FERS pension is based on:

• Your high-3 average salary

• Your years of creditable service

• Your retirement age category (MRA, early, deferred, disability, etc.)

Key Questions to Ask:

• When do I reach MRA + 30 or other eligibility thresholds?

• How will service credit, military time buybacks, or unused sick leave affect my benefit?

• Should I elect the survivor benefit for my spouse?

This is where federal retirement gets personal — and where tailored planning helps.

3. The Thrift Savings Plan (TSP)

Your TSP is your primary personal savings vehicle and includes federal matching contributions (for FERS).

Smart TSP Strategies Include:

• Creating the right mix of G, F, C, S, and I Funds

• Deciding between Traditional and Roth contributions

• Coordinating TSP withdrawals with your pension and Social Security

• Evaluating whether to leave funds in the TSP or roll them to an IRA in retirement

→ For broader investing guidance:
Retirement Investment Planning

4. FEHB, FEGLI, and Long-Term Health Planning

Healthcare is one of the largest expenses in retirement. Federal employees have access to excellent benefits — but decisions matter.

Key Components:

• FEHB (Federal Employees Health Benefits) — Can often be carried into retirement

• FEDVIP — Vision and dental coverage

• FEGLI — Optional life insurance

• FLTCIP — Federal long-term care insurance program (currently paused for new applicants)

Your election choices impact long-term costs, tax strategy, and survivor benefits.

→ Related service:
Health Care Retirement Planning

5. Social Security Coordination

Most FERS employees receive Social Security benefits. Planning involves:

• Choosing the right claiming age

• Coordinating benefits with the FERS pension and TSP withdrawals

• Managing federal taxation on Social Security (up to 85% may be taxable)

• Considering the FERS Supplement if retiring before age 62

For CSRS workers, eligibility rules may differ.

6. Taxes in Federal Retirement — Especially in Florida

Federal retirees in Florida benefit from:

• No state income tax

• No tax on Social Security, pensions, or IRA withdrawals

• No estate or inheritance tax

This makes federal-level tax planning your primary opportunity for optimization:

• RMD planning

• Roth conversion strategies

• Tax-efficient withdrawal sequencing

→ Learn more:
Retirement Tax Planning

7. Estate & Legacy Planning for Federal Retirees

A complete plan includes:

• Survivor benefit decisions

• Beneficiary coordination across TSP, IRAs, and annuities

• Integrating federal benefits with trusts, wills, and power of attorney documents

→ Explore:
Legacy & Estate Planning

TL;DR — Federal Retirement Planning Essentials

• Understand whether you’re under FERS or CSRS

• Use your pension, TSP, and Social Security in a coordinated strategy

• Evaluate healthcare decisions carefully (FEHB, FEGLI, FEDVIP)

• Build a federal-level tax plan, especially if living in Florida

• Integrate retirement income with your overall estate plan

• Review regularly — federal systems are complex, and small decisions carry long-term impact

Next Steps

If you’re a federal employee or retiree in Southwest Florida, we can help you build a plan that integrates all pieces of your benefit system into a clear, confident retirement strategy.

Contact Us
Call 1-888-677-9910 to schedule a consultation.

Disclosure: This article provides general educational information and is not individualized financial, investment, tax, or legal advice. Consult your advisor, CPA, or attorney for guidance specific to your situation.