Foreign Service Retirement vs. Current Salary Calculator (BETA)

Understand Your FSPS Retirement Income

The FSPS Earnings Equivalent & Lifestyle Simulator (FEELS) helps Foreign Service employees estimate how their retirement income will feel compared to their current federal salary. Many assume they need to match their full working salary in retirement to maintain their lifestyle. This is a myth! In retirement, you’ll no longer pay certain payroll deductions, freeing up income that would otherwise be withheld. This calculator shows how your retirement income, combined with these savings, compares to your current salary.

What is FSPS?

The Foreign Service Pension System (FSPS) is a defined benefit pension plan for U.S. Foreign Service employees, similar to FERS but tailored for diplomats. It provides a monthly annuity based on your high-3 average salary and years of service, using a 1.7% multiplier for the first 20 years and 1% thereafter (or 1.7% for all years if retiring at age 65 with 5+ years). For those retiring at the Minimum Retirement Age (MRA, 55–57) with 10–19 years, a 1% multiplier applies, with a 5% reduction per year under age 62. An FSPS Supplement may be available for eligible retirees under 62, mimicking Social Security benefits until age 62, subject to an earnings test starting at age 55. Military buyback years count toward annuity and eligibility but not the Supplement.

Why This Calculator Works

The FSPS FEELS calculator is designed to reflect the unique financial realities of Foreign Service retirees. It accounts for:

• FSPS Annuity & Supplement: Enter your estimated monthly annuity and Supplement, or use the built-in estimator for precise calculations based on your high-3 salary, service years, and retirement age.
• TSP Withdrawals: Include flexible withdrawals (as a percentage or fixed dollar amount) from your Thrift Savings Plan.
• Additional Incomes: Add other monthly incomes (e.g., rental, part-time work) to capture your full retirement picture.
• Payroll Savings: Automatically calculates savings from no longer paying Social Security (6.2%), Medicare (1.45%), FSPS contributions (0.8%–7% based on entry year), and annual TSP/ROTH contributions.

By combining these income sources and savings, the calculator computes a “feels like” income that reflects your effective purchasing power in retirement, expressed as a percentage of your current salary.

The Math Behind the “Feels Like” Income

The “feels like” income shows how your retirement income compares to your current salary, accounting for deductions you’ll no longer pay. Here’s the basic math:

1. Gross Monthly Retirement Income: Sum of your FSPS annuity + Supplement (from input or estimator), monthly TSP withdrawal (percentage of balance or fixed amount divided by 12), and other monthly incomes (e.g., rental).
2. Annual Retirement Income: Multiply gross monthly income by 12.
3. Add Payroll Savings: In retirement, you save:
   • Social Security tax: 6.2% of your current salary.
   • Medicare tax: 1.45% of your current salary.
   • FSPS contribution: 0.8%–7% of your current salary (based on entry year).
   • Annual TSP/ROTH contributions: The amount you currently invest annually.
4. “Feels Like” Income: Annual retirement income + total payroll savings = your effective annual income in retirement.
5. Percentage of Current Salary: (“Feels Like” Income ÷ Current Salary) × 100. A result ≥90% typically indicates a very comfortable retirement lifestyle.