Survey Reveals Federal Employees’ Financial Confidence Level

Federal employees benefit from one of the most robust retirement systems available, yet having strong benefits doesn’t always translate into financial peace of mind. The Federal Retirement Thrift Investment Board’s (FRTIB) 2025 Financial Wellness Survey provides an up-to-date snapshot of how federal workers view their financial health, retirement preparedness, and where challenges remain.

Conducted between May and July 2025, the survey gathered input from FERS participants at every stage of their careers, from early and mid-career employees to those nearing retirement and already retired. Overall, the results point to a workforce that remains cautiously optimistic, even as rising costs and long-term economic uncertainty continue to weigh on financial confidence.

Financial Confidence Increases Over Time

One of the strongest themes in the survey is that financial satisfaction tends to improve as employees advance through their federal careers. Late-career employees and retirees reported the highest confidence levels, while those earlier in their careers were more likely to feel financially stretched.

Compared to 2023, overall satisfaction dipped slightly, particularly among early- and mid-career employees. Higher housing costs, day-to-day expenses, and competing financial priorities continue to make it harder for many to feel secure in the early stages of their careers.

Retirement Confidence Remains Solid

Even with these pressures, most federal employees remain optimistic about retirement. Nearly three-quarters of respondents said they feel very or somewhat confident they will have enough income to retire comfortably. Confidence rises notably as retirement approaches, with retirees expressing the greatest assurance overall.

This pattern reflects the benefit of clarity. As employees near retirement, they typically gain a clearer understanding of how their FERS pension, Social Security, and Thrift Savings Plan (TSP) will work together to support their retirement income.

What’s Holding Employees Back

Among those who reported lower confidence, the leading concerns were consistent: rising living costs, worries about saving enough, and uncertainty surrounding long-term income sources. Debt, medical expenses, and market volatility also ranked high. Even with strong federal benefits, balancing immediate financial needs with long-term planning remains a challenge for many employees.

Planning Is Improving, But Often Later Than Ideal

Encouragingly, more than half of respondents now say they have a specific idea of how much income they will need in retirement, an improvement over previous years. Many are shifting toward thinking in terms of monthly or annual income rather than a single savings target — an important step toward more effective retirement planning.

Engagement with TSP educational resources has increased significantly, signaling growing awareness. However, younger employees are still less likely to seek professional guidance, even though earlier planning can reduce stress and improve outcomes over time.

The Bottom Line for Federal Employees

The takeaway from the 2025 survey is clear: federal employees are generally confident about retirement, but financial stress remains a reality, especially earlier in a career. Building emergency savings, aligning TSP contributions with long-term goals, and regularly reviewing benefits with a Federal Retirement Consultant (FRC®) can help strengthen confidence and create lasting financial security.