Exploring the Impact of Federal Employee Benefits and Retirement Trends: A Statistical Overview
Federal employee benefits continue to play a significant role in the decisions and plans of many workers, according to the latest data from the 2021 Federal Employee Benefits Survey. The availability of programs such as FEHB, TSP, and retirement annuities influenced over 70% of participants to take a job with the federal government, while an even higher percentage reported that these benefits influenced them to stay in their current positions.
The Office of Personnel Management administers several Earned Benefits Trust Funds, including the Federal Employees Health Benefits Fund, Federal Employees’ Life Insurance Fund, Civil Service Retirement and Disability Fund, and Postal Service Retiree Health Benefits Fund. These trust funds are among the largest held by the U.S. government, providing essential support to millions of federal employees and retirees.
Recent trends in the Federal Employees Retirement System, as summarized by the Congressional Research Service, reveal interesting statistics about retirement coverage, annuitants, average age at retirement, and more. The data shows a significant increase in the Civil Service Retirement and Disability Fund balance over the past 32 years, reflecting the importance of these benefits to federal workers.
Looking beyond federal employees, the 2024 Retirement Confidence Survey sheds light on American worker and retiree confidence about retirement. The survey found that a majority of respondents with a retirement plan have saved for retirement, while many without a plan have less than $1,000 in savings. Additionally, a significant percentage of retirees are working for pay in retirement, with some citing the desire to leave a legacy or support family members.
For those feeling anxious about retirement, the survey suggests taking small steps to improve financial preparedness and alleviate fears about the future. By setting aside an emergency fund, attending pre-retirement training events, and considering alternative retirement scenarios, individuals can take control of their financial future and approach retirement with confidence.