Retirement Income

Building Your Retirement Paycheck

While you were working, one paycheck covered everything. In retirement, your income arrives from three different sources, and they don't all start — or stop — at the same time. Building a steady "retirement paycheck" out of those moving pieces, without overpaying in taxes, is the core of a real income plan. Here's how the timeline tends to unfold.

The federal retirement income timeline

StageWhat's flowing inWhat to watch
Retirement to 62Pension + FERS supplement (if eligible) + TSP as neededThe supplement is your bridge; mind its earnings test if you work
At 62Supplement ends; Social Security becomes availableThe claim-now-or-delay decision; an income valley if you delay
62 to 73Pension + Social Security (whenever claimed) + TSPOften the best Roth conversion window — relatively low taxable income
73 and beyondPension + Social Security + required minimum distributionsRMDs force taxable TSP withdrawals whether you need them or not

The two problems sequencing solves

1. Bridging the gaps

The income timeline has soft spots — most notably the valley at 62 if you delay Social Security for a larger benefit. Sequencing means deciding, in advance, which source fills each gap. Usually that's the TSP: drawing it down deliberately in your early retirement years to bridge to a bigger Social Security check later can be a powerful move — but only if you've planned the drawdown so it lasts.

2. Lowering your lifetime tax bill

Every dollar from your pension, your Social Security, and your traditional TSP is taxable, and they stack. Pull too much from the traditional TSP in a high-income year and you push yourself into a higher bracket, make more of your Social Security taxable, and can raise your Medicare premiums. The fix is sequencing which account you draw from which year — blending traditional, Roth, and other savings to smooth your taxable income over decades rather than spiking it. The low-income years before RMDs are where Roth conversions often do the most good.

This is where a plan pays for itself. Sequencing isn't a single decision — it's a multi-year schedule that depends on your exact pension, supplement, Social Security timing, TSP balances, and tax situation, all at once. It's also genuinely a job for deterministic modeling and a qualified tax professional, not a rule of thumb. Our role is to lay out the moving parts clearly so you — and your advisor — can make the calls.

See your retirement paycheck, year by year.

The FedRetireCheck Readiness Report builds your income timeline across all three legs, so you can see the gaps and the tax-planning windows before you're in them.

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Verify with official sources: This article is general education, not advice. Income and tax sequencing are personal; consult a qualified tax professional.