Which Thrift Savings Plan Withdrawal Method Is Best? (Free Video Gives Pros and Cons)
The National Active and Retired Federal Employees Association (NARFE) reports
that:
- approximately 88
percent of federal retirees elect to take their TSP savings in monthly
withdrawal payments,
- 12 percent
elect a single payment withdrawal,
- and less
than 1 percent elect the annuity-purchase option.
Knowing the pros and cons of the TSP's monthly withdrawal options is critical
to preparing for retirement -- whether you are retiring this year or 10-20
years from now.
After years of faithfully contributing your hard-earned
money into your Thrift Savings and carefully managing the allocations for
optimal growth, the last thing you would want is a costly surprise because your
contributions weren't enough to supplement your other sources of government
income: retirement annuity, FERS Supplement, and Social Security.
The following free online video gives an informative case scenario of
the three different TSP monthly withdrawal options. It analyzes the
pros and cons of each using the Benefits Calculator and Retirement Planner
software, and includes 20 pages of training notes (PDF download)
To download the training notes, click here.
To view the online video (approx 10 minutes),
click here.
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Overview - CSRS
