How much does a GS-14 make in retirement? This is a question that many federal employees find themselves asking as they approach the end of their careers. The answer to this question can vary greatly depending on several factors, including the employee’s total years of service, the specific agency they worked for, and the benefits they have accumulated over the years.
Retirement benefits for federal employees are primarily governed by the Federal Employees Retirement System (FERS), which includes three components: the Basic Benefit Plan, the Social Security benefit, and the Thrift Savings Plan (TSP). The GS-14 pay scale, which is one of the higher-grade levels in the General Schedule (GS) system, can provide a substantial foundation for a comfortable retirement.
In the 2023 pay scale, a GS-14 employee earns a base salary that ranges from approximately $93,174 to $119,554 per year, depending on the locality pay in their area. This base salary is a starting point for calculating retirement benefits.
When it comes to retirement benefits, the Basic Benefit Plan provides a pension based on the employee’s salary and years of service. A GS-14 employee with 30 years of service would receive a pension that is calculated at 1.7 percent of their average salary for each year of service. This means that an employee with a final average salary of $100,000 and 30 years of service would receive a pension of approximately $51,000 per year.
In addition to the pension, federal employees are entitled to Social Security benefits, which are calculated based on their earnings history. While Social Security benefits may not be as generous as those provided through the Basic Benefit Plan, they can still play a significant role in an employee’s retirement income.
The Thrift Savings Plan (TSP) is a tax-deferred retirement savings plan that allows employees to contribute a portion of their salary to a tax-deferred account. Contributions to the TSP are matched by the government up to a certain percentage, which can significantly increase the amount of money an employee has saved for retirement.
Considering all these factors, a GS-14 employee with 30 years of service could potentially have a retirement income that includes a pension of around $51,000, Social Security benefits, and a TSP account that has been fully funded by both the employee and the government. This could result in a total retirement income of well over $100,000 per year, depending on the individual’s specific circumstances.
However, it’s important to note that retirement income can vary widely based on the individual’s personal contributions, the amount of time they worked for the government, and the overall performance of the TSP investments. Additionally, the cost of living adjustments and other factors can also impact the actual amount of money an individual receives in retirement.
In conclusion, while a GS-14 employee can expect to receive a substantial retirement income, the exact amount will depend on a variety of factors. Planning ahead and understanding the components of the FERS retirement system can help ensure a comfortable and secure retirement.
