Federal Employee Pay Stub: Which Deductions Stop in Retirement

What happens to your FERS paycheck when you retire? William Smith walks through a real federal employee pay stub line by line and shows which deductions stop the day you leave. Social Security (the OASDI line), Medicare tax, your FERS contribution, your TSP contribution and your allotments all come off. Add your FERS pension and Social Security back in, and the gap between your working net pay and your retirement net pay can be a few hundred dollars a month, depending on your years of service. In this session: How to read your LES and find the deductions that end in retirement A real income gap example: $5,500 in monthly expenses, $1,647 from the FERS pension after taxes, $1,900 from Social Security, and a $1,900 gap the TSP covers How to calculate your FERS pension with your high-3, years of service and the 1% or 1.1% multiplier Why paying off a car note, credit cards or Parent PLUS loans shrinks how much you pull from your TSP How the FERS COLA works once you're retired Q&A: Medicare Part B with FEHB, withdrawal order for TSP and Social Security, and planning with a spouse who isn't a federal employee Chapters 00:00 What changes in your paycheck at retirement 02:50 Walking through a real federal pay stub 04:00 What OASDI is and why it goes away 07:00 What to pull from your LES tonight 09:30 Retirement income gap example 10:10 How the FERS COLA works 11:00 Should you pay off your car with your TSP? 12:30 Mortgage, credit cards and student loans 14:15 Why you shouldn't be afraid to use your TSP 19:00 How to calculate your FERS pension Book a free Discovery Call: https://fedlegacy.zohobookings.com/#/... Join the live webinar every Wednesday at 7:30 PM ET: https://webinar.fedlegacy.com/registr... This video is for educational purposes and isn't personalized financial advice.