Many federal employees do not realize that the COLA number they hear in the news may not be the same adjustment applied to their FERS pension.
Federal employees may hear “COLA increase” and assume their retirement income keeps full pace with inflation, but under FERS, the cost-of-living adjustment can work differently than many expect. Before you retire, it is important to understand how FERS COLA, CSRS COLA, Social Security COLA, and your overall federal retirement income may interact over time.
This video (4 min, 23 sec.) covers:
Why Real Cost of Living Can Feel Higher Than Your COLA
Grocery, Housing, and Inflation Pressure on Retirees
How Rising Food Prices Can Affect Retirement Income
Housing Costs, Rent, and Family Financial Pressure
Regional Inflation and Cost-of-Living Challenges
FERS, CSRS, and COLA Differences in Retirement
Why Future Growth May Matter in Retirement Planning
Balancing Safety, Income, and Inflation Risk