Retirement brings freedom, but also a series of important financial and lifestyle decisions. The first 6–12 months after leaving FRS are critical to setting the tone for a secure and fulfilling retirement. Here’s are a few things to consider next.
Start by understanding your full retirement income picture:
FRS Pension Payments: Confirm the monthly amount, payment start date, and direct deposit setup.
DROP Lump Sum: Decide whether to roll over to an IRA, to the FRS Investment Plan, or take a distribution, (keeping tax implications in mind).
Social Security (if eligible): Determine the appropriate time to start claiming benefits.
Other Savings: Include IRAs, 457(b), or personal investment accounts.
💡 Tip: A written income plan can help you map out what’s coming in monthly and annually — especially important when managing withdrawals and taxes.
Even in retirement, taxes don’t go away. In fact, they can become more complex depending on how you access your retirement savings.
DROP distributions are taxable as ordinary income unless rolled over.
Pension income is taxable federally, though Florida doesn’t tax retirement income at the state level.
Social Security may be taxable depending on your income levels.
Consider Roth conversions or multi-year withdrawal strategies to manage your tax brackets long-term.
💡 Tip: Work with a financial professional or CPA to avoid surprises in your first year of retirement.
If you're not yet eligible for Medicare, you’ll need a plan to bridge the gap.
FRS Health Insurance Subsidy may provide up to $225/month to help offset premiums.
Consider whether you’re staying on your employer’s retiree health plan or moving to the Marketplace.
If you’re 65+, review Medicare enrollment options and supplemental coverage needs.
FRS retirees face specific rules if they plan to work after retirement:
FRS Retirees must wait 6 months before returning to an FRS employer
Working in the private sector or with non-FRS employers typically has no impact.
Entering retirement may be an appropriate time to update (or create) an estate plan:
Review beneficiaries on your FRS pension, DROP account, IRAs, and life insurance policies.
Consider creating or updating a will, power of attorney, health care surrogate, and living will.
Check that your retirement accounts align with your broader estate intentions.
If you’re 73 or older (or will be during the year), you may be required to take RMDs from certain retirement accounts.
Pension payments count toward your income but not RMDs.
DROP money rolled into a traditional IRA or the Investment Plan may be subject to RMDs eventually.
Missing an RMD can result in penalties — planning ahead helps you avoid that.
Retirement isn’t just a financial transition — it’s a lifestyle shift.
Consider volunteering, part-time work, or starting a small business.
Create a weekly routine that blends rest, activity, social time, and goals.
Schedule personal projects, trips, or hobbies that give structure to your new free time.
💡 Tip: Many retirees find that staying mentally and socially active improves well-being more than any spreadsheet ever could.
Retiring from FRS is a major milestone — but it’s not the end of the road. It’s the start of a new chapter that requires thoughtful planning, especially in that crucial first year. From taxes and health care to income planning and lifestyle choices, the steps you take now can set the tone for decades to come.
If you’d like a customized post-retirement checklist or guidance on managing your FRS benefits in retirement, our team is here to help.