Federal Employee Retirement System (FERS)	Send this page to a friend

FERS Retirement Income Example (see your $$$$)

The examples below illustrate the value of the Federal Employee Retirement System (FERS) Basic Annuity retirement income stream. These values represent the Basic Annuity only. They do not contain any Social Security, Special or Supplemental benefit, TSP component, etc.

The purpose is to illustrate the large lifetime value of the Basic Annuity, stripped of any other additions.

These are shown at several "Final Average Salary" levels, ages 55 and 60, and different periods into retirement. They all represent considerable sums of income as they are received over the years of life expectancy.

And large sums to forfeit by not living to or through life expectancy!

Life Expectancy Value of
Basic Annuity* Retirement Income
Age Of Retiree & Spouse	Final Average Salary	Pension Year 1	Pension Year 10	Pension Year 20**	At Year of Life Expectancy	Total Value at Life Expectancy
55	$60,000	$18,000	$20,600	$23,900	$25,800	$525,000
60	$60,000	$18,000	$20,600	$23,900	$22,300	$450,000
55	$80,000	$24,000	$35,300	$40,400	$34,200	$700,000
60	$80,000	$24,000	$35,300	$40,400	$32,100	$550,000
55	$110,000	$33,000	$48,600	$55,600	$47,100	$960,000
60	$110,000	$33,000	$48,600	$55,600	$44,100	$830,000

The Pension Maximization Plan Advantage

If your personal, lifestyle, and financial objectives align positively with the What Is Important To You section, then this table approximates the advantage your own PenMax Plan may have over the FERS Basic Annuity. The FERS ceases its Basic Annuity retirement payments to the retiree at his death, and likewise, ceases any Spousal Reduction payments at the death of the survivor (retiree/spouse).

However, it is likely that under your PenMax Plan there would still be a large sum which could be used to benefit whomever you wish. The approximate range of value is shown in the columns titled "PenMax Advantage" below.

It is this amount that may be "left on the table" simply by ignoring the opportunity, or being unable to qualify for it.

How Large is the Pension Maximization Plan Advantage?
FERS, or FERS and PenMax Plan
Age Of Retiree & Spouse (both)	Final Average Salary	Basic Annuity Income* (monthly)	Survivor's Benefit* (monthly)	PenMax Advantage at Life Expectancy (Approx.)
55	$60,000	$1,500	$750	$85,000 to $95,000
60	$60,000	$1,500	$750	$55,000 to $70,000
55	$80,000	$2,000	$1,000	$140,000 to $165,000
60	$80,000	$2,000	$1,000	$100,000 to $125,000
55	$110,000	$2,750	$1,375	$165,000 to $190,000
60	$110,000	$2,750	$1,375	$105,000 to $125,000