Federal and Military Benefits Planning Guide
Financial Planning for Federal Employees and Military Members
Federal and military benefits are among the most valuable compensation packages available, but only if you understand how all the pieces fit together. Our guides cover FERS, TSP strategy, FEHB, Survivor Benefit Plan elections, and military retirement planning.
How do federal employees and military members plan their retirement when government benefits like FERS, TSP, and military pensions are their primary assets?
Federal and military benefits planning addresses the financial decisions unique to federal employees and service members, including the FERS retirement system, Thrift Savings Plan contribution and investment strategy, FEHB health insurance in retirement, FEGLI life insurance coverage, military retirement pay, Survivor Benefit Plan elections, VA benefits, and how these government benefits interact with Social Security, Medicare, and personal savings to create a comprehensive retirement income plan.
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The Complete Federal Employee Retirement Guide: FERS, TSP, and Social Security Coordination
Coordinating your FERS pension, TSP, and Social Security comes down to sequencing the three income sources around your tax bracket. This guide walks through the exact order, the highest-value decisions, and the mistakes that cost federal employees thousands.
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The major benefit areas for federal and military personnel, each with a dedicated guide and supporting articles.
What is the best strategy for withdrawing from my TSP when I retire?
What is the best strategy for withdrawing from my TSP when I retire? Last reviewed: July 2026 There is no single best TSP withdrawal strategy, because the right approach depends on your tax situation, income needs, and goals, but the key decisions are how to handle Roth versus traditional balances, which withdrawal method to use, and whether keeping money in ... <div><a href="https://chesapeakefp.com/perspectives/federal-military-benefits/" class="more-link">Read More</a></div>
How Does Aberdeen Proving Ground Retirement Work With FERS and TSP?
How Does Aberdeen Proving Ground Retirement Work With FERS and TSP? Last reviewed: July 2026 Aberdeen Proving Ground retirement means coordinating three income sources: the FERS basic annuity, the Thrift Savings Plan (TSP), and Social Security. Each has its own start age, claiming rules, and tax treatment. APG civilians who retire well plan the sequence years in advance. The ones ... <div><a href="https://chesapeakefp.com/perspectives/federal-military-benefits/" class="more-link">Read More</a></div>
Should I take my pension as a lump sum or monthly payments?
Should I Take My Pension as a Lump Sum or Monthly Payments? Last reviewed: July 2026 A pension lump sum gives you the full present value of your benefit in one payment that you control and invest, while monthly payments give you guaranteed income for life that you cannot outlive. The right choice comes down to four things: your health ... <div><a href="https://chesapeakefp.com/perspectives/federal-military-benefits/" class="more-link">Read More</a></div>
How should Aberdeen Proving Ground federal employees manage their FERS, TSP, and benefits?
How Should Aberdeen Proving Ground Federal Employees Manage Their FERS, TSP, and Benefits? Last reviewed: July 2026 Aberdeen Proving Ground federal employees should manage their benefits by treating the FERS pension, the Thrift Savings Plan, and FEHB health insurance as one connected system rather than three separate accounts. The biggest wins come from contributing enough to TSP to capture the ... <div><a href="https://chesapeakefp.com/perspectives/federal-military-benefits/" class="more-link">Read More</a></div>
All articles in this guide Spoke
Every article in the federal and military benefits pillar, covering FERS, TSP, FEHB, SBP, military retirement, and VA benefits.
Frequently asked questions
What is the difference between FERS and CSRS?
FERS is the Federal Employees Retirement System, a three-part retirement package covering most federal civilian employees hired after 1983. The three components are the FERS Basic Benefit annuity, Social Security, and the Thrift Savings Plan. CSRS applies to employees hired before 1984 and provides a larger annuity but no Social Security coverage.
How does the Thrift Savings Plan work?
The Thrift Savings Plan is the federal government's 401k equivalent, available to both federal civilian employees and military members. It offers traditional and Roth contribution options, extremely low-cost index funds, and a government match for FERS employees of up to 5% of salary.
What is the Survivor Benefit Plan and should I elect it?
The Survivor Benefit Plan is an annuity continuation program that allows a retiring military member or federal civilian to provide their spouse with a portion of their retirement pay after death. For military retirees, SBP costs 6.5% of the covered base amount. Electing SBP at retirement is irrevocable without spousal concurrence.
Can I keep my FEHB health insurance in retirement?
Federal employees can continue their FEHB coverage into retirement if they were enrolled for the five years immediately before retirement. Premiums in retirement are the same as those paid during employment.
Is military retirement pay taxable?
Military retirement pay is generally taxable at the federal level and in most states, though several states exempt military retirement income entirely. VA disability compensation is tax-free at both federal and state levels.
Does Social Security apply to federal employees?
Most federal employees under FERS are eligible for Social Security because FERS employees pay into Social Security throughout their careers.
Jeff Judge CFP®, AEP®, ChFC®, CLU®
Managing Partner of Chesapeake Financial Planners in Forest Hill, Maryland, serving families and business owners across Harford County and the Baltimore metro area.
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