Retiring by 2030? These 5 Outdated Rules Could Sabotage Your Exit

August 08, 2025

You've done the work. Your TSP has grown. And you're within striking distance of retirement.

Normally, congratulations would be in order.

But most federal employees heading for the door by 2030 are still relying on rules that made sense in 2005—not the present.

The systems changed. The math shifted.

And if your plan hasn’t evolved, you could be setting yourself up for a bumpy, expensive landing.

5 Outdated Rules That Need a Second Look

1. “The G Fund is My Safe Haven”

If your G Fund allocation hasn’t changed since the Bush years, it might be quietly costing you six figures.

I know it feels like the safest choice.

But after inflation, the G Fund’s real returns often hover near zero.

The risk? Your money’s not growing enough to support a 20–30 year retirement.

2. “I'll Be in a Lower Tax Bracket in Retirement”

Maybe. Maybe not.

Between RMDs, Social Security taxes, and policy shifts, many feds find themselves paying more, not less, in retirement.

That’s why it pays to run the numbers (both pre- and post-tax) and explore Roth conversions while you're still working — especially during lower income years.

3. “My TSP Withdrawal Strategy Is Already Set”

TSP withdrawal rules changed in 2019.

You now have more control than ever—but most aren’t using it.

Stop thinking “one-time withdrawal” and start thinking income layers. Partial, periodic, tax-smart withdrawals = flexibility.

4. “FEHB Will Just Roll Over—I’m Good”

It might.

But miss the 5-year rule? You could lose coverage entirely.

Pick the wrong plan pre-retirement? Your premiums could eat up your COLA.

Audit your eligibility now and lock in smarter coverage before you retire—the peace of mind is well worth it.

5. “The FERS Supplement Is My Bridge to 62”

It’s still around—for now.

But proposed cuts come up almost every year.

If you’re counting on it, you’re building on unstable ground.

Model your retirement with and without it. Build a cushion, not a crutch. Then enjoy the bonus of it sticking around (if it does).

The old rules served a different era.

You’re retiring into a world with:

  • Higher inflation

  • Increased longevity

  • Rising taxes

  • Policy volatility

  • And smarter tools—if you know how to use them

Don’t let a 2005 strategy undermine your 2030 retirement.

Update your assumptions. Audit your income plan. Build for the world you’re actually retiring into—not the one you started working in.

—FWR