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Reply to "FERS Retirement Planning - Still confused"

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[quote=Anonymous][quote=Anonymous]I admit that I have asked this question before, but I am still not clear on an answer (and I have asked others offline as well.)  Basically, I'm not sure how much to weigh the annuity in my calculation of what to save for retirement.

I know that if I wait until 62 and 20 years of service, FERS will pay 1.1% of my high-three salary per year of service.  At that point, being very conservative, I would guess that it will be approximately $2000 per month ([b]not adjusted for inflation[/b]).  That is not enough money to live on comfortably, but it is real money.  I am also putting 10% of my gross into the TSP, plus my 5% match, so a total of 15% of my gross invested per month.

In the abstract, I feel like this should be "enough."  But then I notice that many feds seem to disregard the annuity when planning for retirement and pretend it isn't going to happen.  IS that out of concern that the plan will change to eliminate the annuity?  Because the annuity is not a meaningful number?  I gather there must be something wrong with my reasoning, but I do not know what it is.

Thanks in advance [/quote]

Do they adjust the annuity for inflation?  Wasn't sure why you put that in parentheses OP... [/quote]

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