A federal employee with 30 years of service and a $90,000 high-3 average salary receives a pension of roughly $27,000 per year. This amount is 30% of pre-retirement income, not the 60% to 70% many workers anticipate.
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fraud Social Security Impostor Scams Use Employee Photos to Forge Legitimacy
Retirees are losing money and sensitive personal information to criminals impersonating the Social Security Administration. This follows a surge in government impostor scams via emails, texts, and phone calls reported by the Social Security Administration's Office of the Inspector General. To establish legitimacy, criminals use the names and photos of actual SSA staff. They provide fake access to Social Security statements, a document retirees typically prioritize. Criminals demand payment via untraceable methods including gift cards, wire transfers, and cryptocurrency. The Social Security Administration emphasizes it never sends unsolicited messages demanding immediate action or insists on payment via payment methods of this kind. Retirees provide money or sensitive personal information to criminals, resulting in financial loss.
The FERS basic annuity formula pays 1% of the high-3 average salary for each year of service. The TSP is the primary tool available to make up the difference between the actual pension and expected income replacement.
Related Brief 2h ago
social security reform Social Security’s insolvency date moves up as tax and immigration policies shrink trust fund
A typical couple who turned 60 in 2025 could lose $18,400 a year in Social Security benefits if lawmakers fail to act as the program’s insolvency date moves closer. The Congressional Budget Office now projects the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund will be depleted by 2032, one year earlier than the 2023 projection in the June 2025 Social Security Trustees Report. The Committee for a Responsible Federal Budget confirms insolvency will hit by late 2032. The acceleration stems largely from the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. The OBBBA introduced a $6,000 senior tax deduction, reducing the number of beneficiaries paying taxes on their Social Security income. Since the program relies in part on that revenue, the change has a direct fiscal impact. The Social Security Office of the Chief Actuary estimated the law will drain $168.6 billion from Social Security between 2025 and 2034. The OBBBA also tightened immigration policy, potentially shrinking the U.S. workforce. Fewer wage-earners mean fewer payroll tax contributions, a primary funding source for Social Security. That pressure is compounded by declining birth rates. Without intervention, the CRFB warns benefit cuts become inevitable. For a couple turning 60 in 2025, that means a 24% reduction in annual benefits. While Congress could still act—through measures like adjusting retirement age, modifying cost-of-living adjustments, or expanding the employer tax base—the window for phased, predictable changes is closing.
Default TSP contributions grow at G Fund rates, which earned approximately 4.4% in 2025. The C Fund, which tracks the S&P 500, has delivered an average annual return of approximately 10.6% since 1988. Employees who have not reviewed their fund allocation may have accumulated decades of contributions growing at G Fund rates rather than C Fund rates.
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investing A $300 Monthly Investment in the S&P 500 Can Reach $1.08 Million Over 35 Years
An investor who consistently contributes $300 every month to a low-cost S&P 500 index fund for 35 years accumulates approximately $1.08 million. This outcome is based on the index's annualized average return of 10.5% over the past 50 years, including reinvested dividends. The strategy is advocated by Warren Buffett, who suggests that low-cost index funds beat the majority of professional money managers over long horizons. Buffett highlights the importance of minimizing fees, noting that a 1% annual management fee can consume more than $200,000 in compounding gains on a path to a $1 million portfolio. He recommends index funds with expense ratios as low as 0.03%.
For employees turning 60, 61, 62, or 63 in 2026, the TSP elective deferral limit is $24,500 with a higher catch-up limit of $11,250. This allows a total contribution of $35,750. A combination of shifting holdings toward the C Fund and utilizing the super catch-up increases the TSP balance at retirement.
Related Brief 10h ago
social security reform Social Security's insolvency date moves up by two years — and a typical couple could lose $18,400 annually
A typical couple who turned 60 in 2025 could lose $18,400 per year in Social Security benefits if lawmakers fail to act. That’s the projected consequence of a two-year acceleration in the depletion of Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund, now expected to run dry by 2032. The shift — from a 2033 insolvency date projected by the Social Security Trustees — stems largely from the fiscal impact of the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. The Social Security Office of the Chief Actuary has calculated that the OBBBA will drain $168.6 billion in revenue from the program between 2025 and 2034. A key driver: a new $6,000 senior tax deduction that reduces the number of beneficiaries paying taxes on their Social Security income, a direct hit to a secondary funding stream. The Congressional Budget Office and the Committee for a Responsible Federal Budget both confirm the updated 2032 insolvency timeline. The OBBBA also restricts immigration, a policy expected to shrink the U.S. workforce. Fewer wage earners mean lower payroll tax receipts — Social Security’s primary revenue source — compounding the shortfall. With demographic pressures from declining birth rates, the program faces a narrowing window for reform. The CRFB warns that without intervention, automatic benefit cuts will trigger a 24% reduction for a typical couple, a blow that would be worsened by potential Medicare reductions. Solutions exist — including a broader employer tax, adjustments to cost-of-living increases for higher earners, or raising the full retirement age — but they require time and political will. The terminal consequence is clear: a typical couple who turned 60 in 2025 would face an annual $18,400 reduction in benefits, a cut of approximately 24%.
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