IRONS + COVID = Tsunami Retreat?

Have your career plans changed a little, a lot or completely since the COVID pandemic? Has the retirement tsunami, first predicted in the 1990s, really started? What if another recession is imminent? Lots of work-related issues for a lot of people.

If you are ordered to return to the office full time or even part time, will you do so or will you retire? Many surveys show that up to 40% of people who have worked from home don’t want to come back to the office. Already! The same studies show that many people are eager to return to the office, interact with co-workers, and work with office discipline.

Does the prospect of a Big Cost of Living Adjustment (COLA) of 6% or more in January affect your retirement plans under the COLA Plan of the Federal Employee Retirement System? After years of low inflation – 2-3% – many experts believe government spending programs, COVID and other things are driving up the cost of just about everything. This could present a problem for IRS retirees who obtain dietary COLA when the cost of living exceeds 2%. For an overview of the history of COLAs and their impact on FERS annuities, Click here.

Worried that a stock market correction / fall could eat away at or devour your savings plan nest egg if it is in funds C, S or I? Worried about the impact COVID will have on your 2022 health premiums? Will you need to reduce your coverage?

If you said yes to any or all of the above, welcome to a large and rapidly growing club of eligible retired feds whose bells are ringing.

Many people who have been working remotely or from home for 15 months like the situation. They say they are more productive. Others are eager to come back at least two days a week. What if your agency asks you to permanently work remotely or come back to the office?

Some federal authorities have said that if the vaccination mandate is implemented, they will refuse to take the required vaccines and will try their luck with a possible dismissal. So does this change the benefit levels? Will workers fired for non-compliance receive severance pay?

What if the long-anticipated retirement tidal wave really does occur in 2021-2022? Will you be ready for it or buried by it? Is this the right time to go?

Lots of questions – and we may have some or all of the answers. It is because my guest today on Your turn is Benefits Expert Tammy Flanagan. She will talk about the impact of a big COLA in 2022, the likely increase in federal wages, and what retirees 65 and older should do to prepare for the open season of federal health insurance. It starts on November 8 and will run until December 13. The good news is that all plans are good to great. And people can change every year, regardless of their health, pre-existing conditions, age, etc.

The bad news is that while all FEHBP plans are good, some are just too expensive. Or their disbursement requirement (cost to you) is too high.

Another bad news that can be fixed is that more than half of all federal and postal retirees are on the “bad” plans. As in the overpriced plans. They could save thousands of dollars a year by switching to another plan or option.

If you decide to retire this year or next, what impact will that have on your Social Security benefit? There are things you can do to increase your starting profit by 68%.

And once you leave government, should you leave the TSP to get more investment and withdrawal options? Think before acting.

And much more…

The show starts at 10 a.m. It will air live here and on radio at 3:00 p.m. in the DC-Baltimore area. The show will be archived here so you can listen to it later, replay it or refer it to a friend. If you have any questions for Tammy, please send them to [email protected] before show time.

Be calm and carry on, but not until you’ve listened to Tammy.