Annex Wealth Management is a wealth advisor for federal employees weighing TSP, FERS pension and Social Security decisions, starting from the monthly spending plan. Pension, supplement, TSP and FEHB all feed one monthly number, so we build that number first and fit the portfolio to it.
Doctors and dentists in federal service often started saving late and still carry student debt. Annex Wealth Management covers those pieces through Financial planning for doctors and Physician student loan planning, alongside the federal benefits.
Build the monthly spending number before you pick a retirement date
Annex Wealth Management advisors begin with what you spend each month: mortgage, health premiums, taxes, the things you won't give up. The pension and Social Security cover part of it. The TSP covers the gap, and the size of that gap decides how much you draw.
Before anyone suggests a change in TSP funds or a Roth conversion, we estimate what it would add to your tax return.
How are a FERS pension and the supplement worked out?
A FERS pension is your high-3 average salary times 1% for each year of service, or 1.1% if you retire at age 62 or later with at least 20 years. The FERS supplement is a bridge payment that roughly stands in for Social Security until age 62, and only some retirees qualify.
Take a hypothetical dentist at a federal agency with a high-3 of $120,000 and 30 years of service. Retiring at 62 gives 1.1% × 30 = 33%, or $39,600 a year ($3,300 each month). Retiring at 61 gives 1% × 30 = 30%, or $36,000, so one more year adds $3,600 each year for life.
The supplement usually stops at 62, so an earlier retirement needs a plan for that income drop.
Does FEHB coverage carry into retirement?
Usually yes, if you've been covered by FEHB for the five years just before you retire, or since your first chance to enroll if that came later. Premiums come out of your pension, so they belong in the monthly spending plan.
At age 65, Medicare Part B adds $202.90 a month at the standard rate (2026). Many retirees compare keeping both against FEHB alone.
Choose the survivor election with the numbers in front of you
The full election lowers your pension by 10% and the partial by 5%. The table uses the hypothetical $3,300 monthly pension from above.
If your spouse has their own income and health coverage, a smaller election can make sense. If they rely on yours, the full election is often worth its cost.
| Election | Reduction | Monthly pension |
|---|---|---|
| Full survivor | 10% | $2,970 |
| Partial survivor | 5% | $3,135 |
| No survivor | None | $3,300 |
Decide how the TSP pays you after the pension
Once the pension is counted, the TSP only needs to fill the remaining monthly gap. These are the usual options to compare.
Required minimum distributions begin at age 73 (age 75 if you were born in 1960 or later). TSP funds can lose value, and you may get back less than you put in, which is why we keep a couple of years of spending in safer funds.
- Installments by amount or life expectancy
- Partial single payment for a one-time cost
- Annuity through the TSP's provider
- Rollover to an IRA for more choices
Ask Annex Wealth Management to test your retirement date
Annex Wealth Management reviews a few dates side by side, showing pension, supplement, premiums and TSP draws for each. Reviews happen online or by phone with clients coast to coast, and the minimum is $500K in investable assets. A written agreement sets out the fees before any work starts, so use the request form to ask for a first review.
Annex Wealth Management: common questions
Can I retire before 62 and still get the FERS supplement?
What does a 10% survivor election cost on a $3,300 monthly pension?
Should I leave my TSP in place or roll it into an IRA?
This material is general information only and does not constitute investment, tax or legal advice tailored to your circumstances. Investing involves risk, including possible loss of principal. Before acting on any information here, speak with a financial advisor, tax professional or attorney about your specific situation.