As the federal workforce faces significant changes under the new Trump administration, many employees are contemplating retirement. Beyond understanding pension benefits and healthcare options, it's crucial for prospective retirees to consider the financial implications of long-term care.
Health insurance and Medicare cover only short-term skilled care, leaving you vulnerable to substantial out-of-pocket expenses, creating a cash flow issue, and changing your lifestyle due to extended long-term care needs.
Matt McCann, a nationally recognized expert in long-term care planning, emphasizes the importance of proactive planning. Long-Term Care Insurance provides you with access to your choice of quality care options when needed, even at home.
"Without an LTC policy, retirees risk creating a substanial cash flow problem, depleting their savings, altering their lifestyle, and placing a significant burden on their families."
Planning for Long-Term Care Now is Essential
Whether a federal employee or anyone planning early retirement, long-term care planning remains a crucial component of a comprehensive retirement strategy.
"An LTC policy can protect cash flow in retirement, preserve one's lifestyle, and alleviate family stress."
Federal Employees Being Offered Retirement Options
Recent executive orders have introduced several changes affecting federal employees:
- Return to Office Mandate: Federal employees are required to return to their offices, ending remote work arrangements.
- USPS Early Retirement Incentive: A $15,000 early-out bonus is being offered to U.S. Postal Service carrier employees.
- Senior Executive Service (SES) Reductions: Some SES positions may be eliminated through demotions or reductions in force (RIF).
- Deferred Resignation Offer: Certain federal employees have the option to accept an early-out offer, providing seven months of severance pay until September 30, with no work requirements.
- Federal Hiring Freeze: A hiring freeze has been implemented, preventing employees from transferring between agencies.
These policy shifts have prompted many federal employees to reassess their retirement plans. During the COVID-19 pandemic in 2020 and 2021, a notable number of federal employees retired to avoid vaccination mandates and the return to office settings.
McCann observed, "I had many clients who retired because of these reasons."
Surge in Federal Retirements Require Planning
Looking ahead, McCann says to due forecasts for a surge in retirement applications in 2025 and 2026, he advises federal employees to take proactive steps in preparation:
- Verify Eligibility: Check the minimum retirement age and confirm eligibility for retirement.
- Attend Seminars: Participate in retirement seminars offered by their agencies to gain insights into benefits and processes.
- Seek Professional Guidance: Consider consulting with professionals to navigate the complexities of the retirement process.
Seek Help in Long-Term Care Planning
Seeking professional help with long-term care planning is critically important. McCann says few financial professionals understand LTC Insurance, the partnership program, tax benefits, and policy design.
2025 Rankings of Top Long-Term Care Insurance Choices
McCann advises that individuals with pensions can opt for smaller benefit plans to save on Long-Term Care Insurance. However, he emphasizes the importance of consulting a qualified LTC insurance specialist who works with top-rated insurers providing long-term care solutions.
Incorporating an LTC policy into retirement planning is a critical component of being prepared for the consequences of aging. Such policies can safeguard retirement income and assets from the escalating costs of long-term care services nationwide.
2025 Tax benefits for Long-Term Care Insurance
"Tax-qualified Long-Term Care Insurance has consumer protection and tax benefits. Plus, some plans allow for international benefits for those thinking of retiring overseas."
McCann's extensive experience in policy design and underwriting positions him as a valuable resource for those seeking to understand the intricacies of long-term care planning.
Get Professional Planning Help Now
Matt McCann, licensed in all 50 states and the District of Columbia, represents top-rated insurance companies offering long-term care solutions. His innovative approach enables clients to consult with him remotely while viewing his computer screen, providing a convenient and transparent way to explore and select the best coverage options.
You can get free and accurate quotes from all the top companies, along with professional recommendations - Free and Accurate Quotes.
Media Availability
McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care.
Contact McCann through his website for information.