Organize savings by when you expect to spend them. The buckets are planning categories, not three required accounts or a promise of returns. Their sizes and time frames should reflect your spending, reliable income, taxes and comfort with risk.
Type into the PDF and save your own copy, or print it. Includes your spending gap, three buckets and replenishment plan. Calculations are manual; completed information is not submitted to us.
1 · Spend soon
Illustrative: years 1–2
Money for planned withdrawals and unexpected expenses. Prioritize access and stability.
What might go here?
Checking and savings, short-term CDs, Treasury bills, or suitable cash equivalents.
2 · Support the next stage
Illustrative: years 3–7
Prepare for upcoming withdrawals and replenish near-term reserves as part of a written plan.
What might go here?
Annuities selected for planned income needs, alongside a ladder of CDs where appropriate.
3 · Grow for later
Illustrative: year 8 onward
Seek long-term growth to help support later spending and keep pace with inflation.
What might go here?
Growth-focused fixed indexed annuities, alongside diversified stock funds or ETFs where appropriate.
Start with the gap—not your entire paycheck
For example, if spending is $5,000 a month and pension plus Social Security provide $3,500 after estimated taxes and deductions, savings must provide the remaining $1,500. Two years of that gap equals $36,000, before withdrawal taxes, inflation and any separate emergency reserve. This is an illustration, not a recommended allocation.
How do you refill the buckets?
Review reserves regularly. Use scheduled maturities, portfolio income and deliberate rebalancing to plan replenishment. Decide in advance how spending or withdrawals would change during a prolonged decline. Do not assume the growth bucket will always be up when you need cash.
Income-focused annuities may support bucket 2; growth-focused fixed indexed annuities may fit longer-term goals in bucket 3. Index-linked interest depends on contract caps, participation rates and other terms; it is not direct stock-market investing. Match surrender periods and withdrawal provisions to your timeline. Guarantees depend on the claims-paying ability of the insurer.
The time bands above are an illustrative framework, not an SEC rule. Asset mix depends on time horizon and risk tolerance; diversification does not eliminate losses. Reference: Investor.gov asset allocation guidance.
FERS combines three sources: the basic pension, Social Security and the Thrift Savings Plan. Think of your retirement spending as the seat supported by these three legs. They work together, but they need not provide equal amounts or start at the same time.
FERS pension
A defined benefit based on eligibility, creditable service and high-3 pay. Your retirement category, start date and survivor election affect the result. Qualifying special-category employees can have different rules.
Social Security
A separate benefit based on your earnings record and claiming decision. Use your personal SSA estimate and plan for its actual start date; leaving federal service does not automatically start Social Security.
Thrift Savings Plan
Your retirement savings account. Contributions, applicable agency contributions, investment results and withdrawals shape its role. Its balance is not itself a guaranteed monthly paycheck.
Make the legs work together
Map income at retirement, when Social Security starts, and after a spouse dies. An early retirement may require a bridge before all three sources begin. A FERS supplement is a separate eligibility question—not an automatic fourth leg—and is not included in our calculator.
The stool identifies your income sources; the buckets organize the savings you draw on. TSP is an account, not a single bucket: its investment mix can serve different goals. Avoid counting the same savings twice.
For clients outside FERS, a similar discussion considers Social Security, any employer pension, and personal retirement savings. Not everyone has a pension.
These are preparation materials, not completed legal documents. Completing them is optional. Keep completed worksheets private; do not send personal estate details through the website contact form. Ask us how to share documents securely. Wealth.com is not a law firm; individual legal questions should be reviewed with a licensed attorney.
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Federal benefits
Retirement in a special-category federal job
Air traffic controllers, covered law enforcement officers, firefighters, Capitol Police, Supreme Court Police, nuclear materials couriers and CBP officers may have special retirement provisions. A job title alone does not establish coverage.
Use your agency-confirmed covered service in our federal calculator. Its qualifying special-provisions pension estimate carries through to the paycheck and survivor tools. Military reserve technicians and CBPO transitional cases need separate review.
Ask your benefits office about mandatory separation, service combinations, the FERS supplement and access to TSP. Our calculators do not determine those benefits or tax exceptions.
Questions for your review
Which service dates count under my coverage?
Does my proposed date qualify for special retirement?
Which benefits and withdrawal rules need a separate estimate?
Your last day at work and the start of your pension are related decisions. Begin with an agency estimate, then compare the income available at each stage.
FERS eligibility depends on age and creditable service. Immediate, postponed, and deferred retirement can have different consequences. Meeting a minimum age does not by itself establish eligibility.
Ask your benefits office to confirm your retirement category, service record, pension start date, and any age reduction. Make a budget for the period before Social Security or other income begins.
Questions for your review
What retirement category applies to me?
When would each income source begin?
How much accessible cash do I need during the transition?
Health premiums belong in your retirement budget, but first confirm whether and when your coverage can continue.
Continuing FEHB generally requires an immediate annuity and enrollment or qualifying family-member coverage for the five years before retirement, or since your first opportunity if shorter. Exceptions and retirement-category details can matter.
Have your agency verify your coverage history before finalizing your retirement date. Postal employees should review PSHB-specific rules. Discuss Medicare coordination separately when relevant.
Questions for your review
Does my coverage history meet the requirements?
How does my retirement category affect continuation?
A useful review begins with your priorities. Organize what changed and what you want to understand.
Bring your existing trust, amendments, and a list of trust accounts for your own reference. Note family changes, property transactions, and questions about intended beneficiaries. Do not change account ownership or beneficiary designations based on a general checklist alone.
We offer free trust and trust-account reviews, help with updates, and new trust setup. Trust documents are prepared through a partner company. Confirm the proposed work and any charges before proceeding.
Questions for your review
What family or property changes should we discuss?
Which documents or accounts need individual review?
General education cannot determine your personal benefits, legal needs, or product suitability. Confirm benefit details with your agency and discuss individual decisions with the appropriate professional.
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