“When can I retire?” is one of the most common questions federal employees ask as they advance in their careers. The Federal Employees Retirement System (FERS) considers several variables to determine when you are eligible to retire, including your age and years of creditable service. Depending on your retirement goals and individual situation, those eligibility requirements will point you toward a few options: immediate retirement, early retirement (MRA+10), postponed retirement, or deferred retirement. It’s important to understand age and service requirements for each path and other factors to consider as you plan for your future.
Key Takeaways
- Your Minimum Retirement Age (MRA) ranges from 55 to 57 years old, and once your years of service are included in the equation, you’ll have a clearer view of what FERS paths are available for you.
- There are four FERS retirement options: immediate, early (MRA+10), postponed, and deferred. Each option has its own eligibility requirements.
- If you retire before turning 62 years old by using MRA+10, your annuity could be permanently reduced by 5% for every retired year that you’re younger than 62.
- Retiring from federal service to start a new career does not automatically mean you lose your pension. If you meet the years of service requirements, a deferred or postponed retirement can protect what you’ve already earned in your pension.
- The most practical retirement path depends on more than just your age. You’ll also need to consider health insurance, the Special Retirement Supplement, and your overall financial health to make an educated retirement decision.
A Quick Refresher on FERS
If you’re ready to retire soon or just planning for the long term, our article “Understanding the Federal Employee Retirement System: A Primer” is a great place to get reacquainted with the basics about FERS and how it combines three sources of income (Social Security, FERS pension, Thrift Savings Plan (TSP)). In this article, we focus on your FERS pension eligibility, because that shapes how the other two income sources come together.
You can also explore more resources for federal employees, including our FERS calculator, frequently asked questions, and our monthly webinars for federal employees.
What Is Your Minimum Retirement Age in FERS?
To start analyzing your FERS retirement paths, you need to start with your Minimum Retirement Age (MRA). Your MRA depends on the year you were born and it ranges from age 55-57. While reaching your MRA is a significant milestone, it doesn’t instantly mean you’re eligible for your full pension. FERS uses your years of creditable service combined with your MRA to determine your retirement path and annuity amounts.
| Year of Birth | Minimum Retirement Age (MRA) |
| Before 1948 | 55 |
| 1948 | 55 years, 2 months |
| 1949 | 55 years, 4 months |
| 1950 | 55 years, 6 months |
| 1951 | 55 years, 8 months |
| 1952 | 55 years, 10 months |
| 1953–1964 | 56 |
| 1965 | 56 years, 2 months |
| 1966 | 56 years, 4 months |
| 1967 | 56 years, 6 months |
| 1968 | 56 years, 8 months |
| 1969 | 56 years, 10 months |
| 1970 and later | 57 |
The Four Paths to Retirement Under FERS (And How to Qualify)
Federal employees usually fall into one of four categories for FERS retirement eligibility. Here is how each category works and how it impacts your annuity.
1. Immediate Retirement
Immediate retirement gives you full access to your FERS annuity right after you retire from federal service. To qualify for immediate retirement, you must reach one of these combinations of age and service:
- 62 years old, minimum 5 years of service
- 60 years old, minimum 20 years of service
- Your MRA (see chart above), minimum 30 years of service
If you decide to retire at 62 and you also have at least 20 years of service, your pension is calculated using a slightly higher multiplier to increase your monthly benefit throughout your retirement. For a closer look at exactly how the annuity formula works, check out our article: How FERS Calculates Your Retirement Annuity.
2. Early Retirement (MRA+10)
If you’ve reached your MRA and have at least 10 years of service (but fewer than 30 years), you can retire early through MRA+10. However, there are tradeoffs you need to consider. If you retire using this path, your annuity is permanently reduced by 5% for every year you are under 62 years old.
For example, if a federal employee is 57 years old with 15 years of service and wants to retire, they will have a reduced pension of 25% and significant and permanent decrease in monthly income.
3. Postponed Retirement
The MRA+10 pension reduction can be softened by using something called postponed retirement. If you meet the MRA+10 requirements for early retirement, you can choose to delay the start date of your annuity. The later your delay, the smaller the reduction in your pension. If you wait until you turn 62 to take the annuity, the 5% reduction requirement is removed, and you’ll have full access to your pension.
4. Deferred Retirement
It’s becoming more common for federal employees to leave mid-career for jobs in the private sector or state/local government. Deferred retirement may still protect the federal pension already earned.
You’re eligible for deferred retirement if you have at least 5 years of service before leaving federal employment, regardless of your age. Your pension doesn’t grow after you leave, but it doesn’t go away, either. You’re eligible to receive it once you reach one of the age and service combinations listed above.
The primary trade-off involves your healthcare options. Deferred retirees are not eligible for FEHB or federal life insurance coverage. If you are considering a career change, you need to keep this trade-off in mind so you can make an informed decision.
Choosing the Best Retirement Path for Your Situation
Now that you’ve gotten a handle on the basic rules, you can start evaluating what path makes the most sense for you. Some questions to ask yourself as you plan for retirement include:
- How much income do you need in retirement to cover expenses?
- How important is keeping your FEHB coverage into retirement?
- How will your TSP and Social Security timing need to adjust to match your FERS path?
- If you’re considering a career change, have you confirmed your years of service for eligibility?
Our FERS Calculator is a helpful first step for estimating your numbers under each scenario, and our YouTube channel has a growing library of videos on FERS, TSP, taxes, Social Security, and more.
Frequently Asked Questions About FERS Eligibility
What happens to my pension if I leave federal service before I’m eligible to retire?
If you separate with at least 5 years of service but haven’t met one of the immediate retirement combinations, you may qualify for deferred retirement, and your pension will be preserved. This is common for people who change careers to work in the private sector. You can access your pension once you reach eligibility age, though it will not include FEHB continuation or the FERS Special Retirement Supplement.
If I postpone my retirement, will my pension increase?
Postponing your retirement does not increase your pension, but it can reduce or eliminate the 5% per-year MRA+10 reduction. This means waiting to reach full eligibility gives you more of the pension you’ve already earned.
Am I eligible for the FERS Special Retirement Supplement?
The Special Retirement Supplement is generally available to employees who retire on an immediate, unreduced annuity before turning 62. This includes people retiring at their MRA with 30 years of service, or at age 60 with 20 years of service. The FERS Special Retirement Supplement is not available to MRA+10, postponed, or deferred retirees.
Can I keep my federal health insurance (FEHB) after I retire?
If you’ve been continuously enrolled in FEHB for the five years before retirement and you retire on an immediate annuity, your coverage will usually continue into retirement. Postponed retirees may be able to reinstate FEHB when their annuity begins, while deferred retirees are not eligible to continue or reinstate it.
Want help navigating your federal retirement? That’s what we’re here for.
Ensuring that federal employees are set to get the maximum benefit from their retirements is a huge part of what we do at Christy Capital Management. When you’re ready to start planning for life after your federal service, we’re ready to help.
