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Freedom Financial Solutions, Inc. |
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What is Pension Maximization?
Upon retirement, many federal employees may wish to share a percentage of this basic benefit with their spouse in the event of their (the federal employee’s) death during retirement. This is called a survivor benefit. In the CSRS and CSRS offset, a little less than 10% of their basic annuity is given up in order to provide a 55% benefit for their spouse. In the case of a FERS employee, the full 10% of their basic benefit is given up in order to provide their spouse a 50% benefit of their basic annuity. This amount is paid by the federal employee on an annual basis. A similar program called SBP exists for members of the military. Are you aware that…. Without the surviving spouse benefit option, an early death would If your spouse dies first, you lose your survivor benefit. All money If the retiree lives a short time, the surviving spouse faces a lifetime of If both retiree and spouse live a full life and die within a relatively close In either case, the children, estate or charity will never inherit any benefits? The difference in cost between the single life benefit and the surviving spouse benefit can be used today to purchase a permanent life insurance policy that can accumulate cash values? If the spouse precedes the federal employee in death, the retiree can surrender the policy for the cash values or leave the death benefit to another beneficiary of their choice. This is referred to as pension maximization. |
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Are you paying too much
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What is the Thrift Savings Plan?The Thrift Savings Plan (TSP) is a retirement savings and investment plan forFederal employees and military personnel. Know your options at retirement or separation and at age 59 1/2. |
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Smart Consumer savings tips on Autos, Homes, Travel, the best Colleges and College Scholarships, Job Search, and more |
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Veterans Advantage is the leading nationwide membership benefits organization for all U.S. military Veterans, those who actively serve, and their families. |
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