2025 Will See a Mass Exodus of Federal Employees Seeking Retirement

Remember, Proper Planning Prevents Poor Performance. Image: G.Tbov/Shutterstock.com

The new administration has started with executive orders which may change the complexity of how many federal agencies will be operating.

Some of the new executive changes are as follows:

1. Federal Employees are required to return to work at their offices.

2. A $15,000 early out bonus is being offered to US Postal Service Carrier Employees.

3. Senior Executive Service positions maybe eliminated by either a demotion or a RIF, Reduction in Force.

4. There is an early out (“deferred resignation“) offer from certain federal employees to have seven months of severance pay until September 30 with no work requirements.

5. There is a federal hiring freeze which will prevent employees from changing agencies.

During the pandemic in 2020 and 2021 federal employees were retiring because they did not want to take the COVID vaccine and they did not want to return to the office.

I had many clients that retired because of these reasons.

Personally, I forecast retirement applications will soar in 2025 and 2026.

What should employees do in the meantime.

1. Employees should check the minimum retirement age and see if they are eligible to retire.

2. Employees should take advantage of any retirement seminars offered by their agency.

3. Employees should consider seeking professional help to guide them through the retirement process.

Recently, I have been contacted by my clients who are rethinking their retirement plan.

Remember, Proper Planning Prevents Poor Performance.

Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor.  Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 80 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.

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