Simple Formula For Estimating Retirement Income

~~A Simple Formula for Estimating What Your Retirement Income Might Look Like

Estimate of Social Security eligibility and payments plus Estimate of your pension or annuity plus any income that you Thrift Savings Plan is able to produce equals the Estimate of Your Retirement Income

Until you actually get ready to retire and submit you retirement application this formula is a moving target because your earnings are changing, thus impacting the outcome of what your retirement income will look like. However, checking the health of your financial picture, such as looking at how your TSP account is performing and making any necessary changes is a good exercise to keep you on track to retiring well.  About 5 years before you are going to retire (and certainly within 1 year and consistently thereafter) you should be working with a financial expert who is knowledgeable in Federal Benefits and TSP Fund choices and alternatives and looking for financial guidance.
This exercise will also alert you to whether you need to consider other options for your retirement future such as increasing savings or contributions to your TSP and evaluating Annuity expenses and spending habits.   It can also be very useful in determining what your income and expenses represent at various stages in your work career and life.   It is easier by the inch than the mile.  Getting a snap shot view of your financial health early is tantamount to a successful retirement future.

P. S.   Always Remember to Share What You Know

Information on your Annuity Calculations can be found here

Check out your Social Security Benefits

How can you access your TSP account

Postal employees can access their Thrift Savings Plan through LiteBlue