The Two-Year Retirement Countdown: A Washington State Public Employee's Guide

As a former city employee, I understand the unique challenges of planning for retirement in public service. These to-dos will help you navigate the crucial final two years before retirement.
 
For State and Local government employees approaching retirement, particularly those in the Department of Retirement Systems (DRS), the final two years are crucial for ensuring a smooth transition. Having worked with cities, fire districts, and other municipalities, I've seen how proper planning can make all the difference.
 
Remember: This should be customized to your specific situation and employer requirements! It may not include everything that you need to consider for your unique situation.
 
24-22 Months Before Retirement
 
Month 24

• Create a comprehensive retirement budget, separating essential needs from discretionary spending.
• Consider using a retirement lifestyle calculator to help you create your retirement budget. [3]
• Calculate your expected monthly retirement income from all DRS sources.
• Review your debt situation and create a plan to eliminate high-interest debt.

 
Month 23

• Begin exploring healthcare options and costs post-retirement.
• Start tracking monthly expenses to validate your retirement budget.
• Research Washington State-specific healthcare considerations.

 
Month 22

• Review and update all insurance policies.
• Begin researching Medicare options if you'll be 65 at retirement.
• Consider long-term care insurance needs.

 
21-19 Months Before Retirement
 
Month 21

• Evaluate your investment portfolio's risk level.
• Consider consolidating retirement accounts for easier management.
• Review your emergency fund status.

 
Month 20

• Analyze Social Security claiming strategies.
• Meet with a financial advisor familiar with Washington State DRS plans.
• Review DRS pension options.

 
Month 19

• Start researching tax implications of retirement withdrawals.
• Review pension benefit options.
• Consider downsizing needs and housing plans.

 
18-16 Months Before Retirement
 
Month 18

• Maximize contributions to retirement accounts.
• Review beneficiary designations on all accounts.
• Create a retirement income withdrawal strategy.

 
Month 17

• Evaluate whether to pay off your mortgage.
• Research health savings account options.
• Begin planning post-retirement activities and lifestyle.

 
Month 16

• Review estate planning documents.
• Calculate expected healthcare costs.
• Consider part-time work options if desired.

 
15-13 Months Before Retirement
 
Month 15

• Test-drive your retirement budget.
• Review and update your will and other estate planning documents.
• Research required minimum distributions (RMDs).

 
Month 14

• Check Social Security earnings record.
• Review life insurance needs.
• Begin transitioning to more conservative investments if needed.

 
Month 13

• Schedule Washington State DRS retirement planning seminar. [2]
• Create a retirement filing system.
• Review credit reports and scores.

 
12-6 Months Before Retirement
 
Month 12

• Begin Medicare enrollment process if applicable – You can start applying for Medicare 3 months before your 65th birthday, and the initial enrollment period extends three months’ pay your birthday. [4] Do NOT miss this sign-up window – doing so could be very costly.
• Review DRS pension survivor benefit options.

 
Month 9

• Schedule meetings with HR about retirement procedures. This may need to take place sooner, depending on your organization’s policies.
• Review unused vacation and sick leave policies.
• Begin organizing important documents.

 
Month 6

• Request an official benefit estimate from DRS. [1]
• Submit retirement paperwork to employer.
• Finalize healthcare coverage plans.
• Review required tax withholdings.

 
Final 5 Months
 
Month 5

• Set up new bank accounts if needed.
• Review automatic bill payments.
• Begin transitioning work responsibilities.

 
Month 3

• Complete a DRS retirement application at least 5 weeks before your intended retirement date.
• Confirm all retirement paperwork is processed.
• Review and adjust tax withholding strategies.

 
Month 1

• Complete COBRA or healthcare enrollment.
• Set up direct deposits for pension and other income.
• Create a schedule for your first month of retirement.

 
Important Considerations for Washington State Employees

• Factor in regional cost-of-living differences.
• Consider healthcare availability and costs in your chosen retirement location.
• Review Washington State-specific tax implications.
• Understand your specific DRS plan details and options.

 
Next Steps
 
Working with a financial advisor who understands Washington State retirement systems can help ensure you haven't overlooked any critical steps in your countdown to retirement.
 
Sources
 
[1] https://www.drs.wa.gov/life/retire/
 
[2] https://www.drs.wa.gov/life/retire/seminar/
 
[3] https://calculators.everfi.net/index.html#/lifestyle?nodeId=5836&accu=DRSWR&isChild=true
 
[4] https://www.insurance.wa.gov/when-can-i-sign-medicare
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-Seth Deal