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Planner Warns FERS Retirees: Inflation Erodes Annuities, G-Fund

6/6/2026

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Summary

Story summary

Planner Art Stein warned FERS retirees that annuities and TSP G-Fund holdings could erode purchasing power.
He said FERS COLA equals inflation minus 1 % when inflation exceeds 3 %, otherwise it stays at 2 %.
He warned that bonds, though less volatile than stocks, risk loss of purchasing power from taxes and inflation.
He warned that TSP L Funds shift to 67 % G-Fund and 5-6 % F-Fund ten years before retirement, forcing withdrawals.

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Story summary

Planner Art Stein warned FERS retirees that annuities and TSP G-Fund holdings could erode purchasing power.
He said FERS COLA equals inflation minus 1 % when inflation exceeds 3 %, otherwise it stays at 2 %.
He warned that bonds, though less volatile than stocks, risk loss of purchasing power from taxes and inflation.
He warned that TSP L Funds shift to 67 % G-Fund and 5-6 % F-Fund ten years before retirement, forcing withdrawals.