Federal employees make a LOT of mistakes when it comes to retirement.
Actually, let me rephrase that,
Federal EmployeesEverybody makes a LOT of mistakes when it comes to retirement.
It’s true, mistakes being made regarding retirement is not exclusive to federal employees. There are constantly new, news stories being published that make this point very clear to me; such as this one that says 62% of Americans have less than $1,000 in savings.
To me, the BIGGEST issue doesn’t have to do with how federal employees allocate their investments or whether they’ve began planning for their increase in life insurance costs or things like that.
The BIGGEST federal employee retirement mistake that I see being made is: Not Contributing 5% to the TSP.
This is the mistake I see more than any other–and I believe it’s due to a lack of education and discipline among other things.
Today, I’m going to discuss why this is a problem and what can be done about it.