The Foreign Service Journal, September 2022

THE FOREIGN SERVICE JOURNAL | SEPTEMBER 2022 75 tribute more to TSP, open an Individual Retirement Account and/or buy rental property. Focus on Your TSP. Since your Foreign Service pension plus Social Security benefits will not come close to replacing your salary, a signifi- cant portion of your retirement income will need to come from your TSP account. Thus, you should contribute as much of your salary as early in your career as you can (including making “catch up” con- tributions starting the year you turn age 50) since the government matches some of your contributions and all the money compounds over time. Just as importantly, if you or your sur- vivor anticipate drawing on your TSP account 20 or more years from now, most experts advise investing in funds with relatively high average rates of return (the C, S, I and/or long-range L funds) to increase the chances that your invest- ments will generate gains in the coming decades that outpace inflation. The same consideration applies if you own an IRA or other financial investments. Learn about Social Security. One of your most important deci- sions will be when to start taking Social Security benefits. You can do so anytime between age 62 and 70. For every month that you wait after your 62nd birthday, your monthly payment rises but you permanently forgo the skipped payments. So, what is the best age to start Social Security? The answer depends on such things as whether you are still employed, whether you have a spouse, what your life expectancy is, and whether you need those payments early in retirement to help cover living expenses including long, active trips while you are still physically able. As you approach age 62, learn more about Social Security so you can make an informed choice. Periodically Reassess Your Health Insurance. Every November, the Office of Person- nel Management holds an Open Season for Federal Employees Health Benefits during which you can change your plan election. There are more than 200 plans to choose from, with varying fea- tures and costs. As health care needs change over the years, it is wise to peri- odically reassess how your health plan is meeting your and your family’s needs. Also consider optional dental and vision coverage. AFSA offers its members a resource to assist in this process—access to the Consumers’ Checkbook Guide to Health Plans for Federal Employees. The checkbook boils down and interprets a massive amount of data to help you make an informed deci- sion. Look for an email from AFSA each November with instructions on how to access the online guide. Resolve Prior Service Issues. If you worked elsewhere in the federal government prior to joining the Foreign Service, youmust proactively take steps to ISTOCK/KWANGMOOZAA