“The average GS Pay increase for 2019 should be about 2.1percent… it’s probably a good idea to evaluate your retirement contribution before the increase hits your paycheck and your pocket.”
OPM published newly proposed locality pay areas, and according to the articles linked to in the post, federal employee salaries have been increasing steadily since 2014, and the average GS basic pay increase for 2019 should be about 2.1 percent.
Are you one of the 62,000 federal employee salaries will see an increase with the proposed changes in the locality pay schedules? If you are like most people, it’s much easier to save money when it comes out before you see it in your paycheck, and in your bank balance.
So, if you are slated to receive a pay increase, whether from a locality pay increase, a step increase, or changing to a higher paying job – it’s probably a good idea to evaluate your federal retirement contribution level before that money hits your paycheck and your pocket. Or, if you haven’t yet started saving for your retirement, starting by contributing all or a portion of your locality pay increase might be a great, and easier way to start.
Of course, knowing how much you are going to need to rely on TSP for retirement income, how much income will come from other sources in retirement, and what expenses to plan for in retirement are much more complex questions. Insight Benefit Counselors (IBC) provides tools and services that can help: the FedTrack federal employee benefits and retirement calculator, and one-to-one benefits reviews with an experienced and trained federal benefits counselor. Current and former federal employees are qualified to access these resources at no cost.
By using the FedTrack system and working directly with a benefits counselor now, you can be prepared ahead of your next pay increase. Being prepared ahead of time may also help take the emotion out of saving and retirement planning. This way you can focus on working towards higher compensated positions, accumulating more time in service, and get the peace of mind that comes from having a plan.
Contact us to get started with Insight Employee Benefits Counselor today.
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