As a federal employee approaching retirement, you’re facing one of the most important financial decisions of your career. When planning your retirement, determining the best age to retire from the federal government is an essential consideration.
The timing of your retirement affects not just your immediate lifestyle change but potentially decades of financial security. While you might be eager to start the next chapter, the Federal Employees Retirement System (FERS) creates a complex landscape of age milestones and service requirements that deeply impact your retirement income.
Understanding these key age-related tipping points can help you maximize your hard-earned benefits.
What is the Best Age to Retire from the Federal Government?
There is no single “best” age to retire that applies to all federal employees, as the optimal retirement age depends on your specific FERS benefits, years of service, financial needs, and personal circumstances. Many federal employees find that waiting until their Minimum Retirement Age (MRA) with at least 30 years of service, or age 62 with at least 20 years of service, provides the most advantageous combination of full benefits and pension calculations.
Understanding FERS Retirement Eligibility Basics
The Federal Employees Retirement System operates like a three-legged stool, with each component supporting your retirement: the Basic Benefit Plan (your pension), Social Security benefits, and the Thrift Savings Plan (TSP). Your eligibility hinges primarily on the relationship between your age and years of service.
Your Minimum Retirement Age varies based on birth year. For those born before 1948, the MRA is 55, while the threshold gradually increases to 57 for anyone born in 1970 or later:
| If you were born | Your MRA is |
| Before 1948 | 55 |
| In 1948 | 55 and 2 months |
| In 1949 | 55 and 4 months |
| In 1950 | 55 and 6 months |
| In 1951 | 55 and 8 months |
| In 1952 | 55 and 10 months |
| In 1953–1964 | 56 |
| In 1965 | 56 and 2 months |
| In 1966 | 56 and 4 months |
| In 1967 | 56 and 6 months |
| In 1968 | 56 and 8 months |
| In 1969 | 56 and 10 months |
| In 1970 and after | 57 |
FERS offers several retirement pathways:
- MRA with 30 years of service (immediate, unreduced annuity)
- MRA with 10–29 years of service (reduced annuity unless you postpone)
- Age 60 with 20 years of service (immediate, unreduced annuity)
- Age 62 with at least 5 years of service (immediate, unreduced annuity)
Your pension calculation multiplies 1% of your high-3 average salary by your years of service—increasing to 1.1% if you retire at age 62 with at least 20 years of service.
For additional legal guidance regarding FERS benefits, consider consulting a FERS lawyer.
The MRA+30 Sweet Spot: Retiring with Full Benefits
Many federal employees view the MRA+30 combination as the golden ticket of federal retirement. This timing allows you to collect an immediate, unreduced annuity at the earliest possible age while also qualifying for the valuable FERS Supplement.
The FERS Supplement serves as a financial bridge, approximating your Social Security benefit until you reach age 62. This additional income helps compensate for the gap before Social Security typically begins. The supplement automatically stops at age 62, regardless of whether you claim Social Security then.
For example: If your MRA is 57 and you’ve completed 30 years of service with a high-3 average of $90,000, you’d receive $27,000 annually ($2,250 monthly), plus the FERS Supplement until age 62.
While this timing enables earlier retirement with full benefits, consider whether these income sources will adequately support what could be several decades of retirement.
Early Retirement Options: Before MRA or With Fewer Service Years
If you’re contemplating retirement before reaching your MRA or without 30 years of service, several options exist—though they often involve financial trade-offs.
The MRA+10 option allows retirement at your MRA with at least 10 years of service, but your annuity faces a permanent reduction of 5% for each year you’re under age 62. Retiring at an MRA of 57 with 15 years of service would result in a 25% permanent reduction—a substantial price for early retirement.
Federal agencies occasionally offer Voluntary Early Retirement Authority (VERA) opportunities or early outs, which allow retirement earlier than standard eligibility without the usual penalties, typically requiring age 50 with 20 years of service or any age with 25 years of service.
In conjunction with VERA, agencies may also offer Voluntary Separation Incentive Payments (VSIP)—a financial incentive of up to $25,000 to encourage voluntary resignations or retirements. These incentives can make early retirement more financially attractive and are often used during agency restructuring or downsizing. While valuable, both VERA and VSIP are only available under specific conditions authorized by the Office of Personnel Management (OPM) and your employing agency.
Deferred retirement is available if you leave federal service before meeting immediate retirement eligibility. With at least 5 years of service, you can receive a deferred annuity beginning at age 62. With at least 10 years, you can start collecting at your MRA, though you’ll face reduction penalties if claiming before 62.
Early retirement means funding more retirement years, potentially navigating health insurance gaps, and having less time to build your TSP balance—all requiring careful consideration.
Maximizing Benefits by Waiting: Age 60 and Age 62 Milestones
While many federal employees aim to retire at their MRA, compelling financial incentives exist for waiting until age 60 or 62.
At age 60 with at least 20 years of service, you qualify for an immediate, unreduced annuity—providing a higher benefit than the reduced MRA+10 annuity without requiring the full 30 years needed for MRA+30.
Age 62 represents a particularly valuable milestone, especially with at least 20 years of service. Your annuity calculation increases from 1% to 1.1% of your high-3 average salary for each year of service—a 10% overall enhancement. With 20 years of service and a high-3 average salary of $100,000, this means:
- Retiring before 62: $20,000 annual pension
- Retiring at 62 or later: $22,000 annual pension
This $2,000 annual increase continues for life, growing more substantial with longer service.
Additionally, at 62 you can begin drawing Social Security benefits if desired and you’ll have had more time to build your TSP balance. However, you cannot receive both the FERS Supplement and the 10% pension bonus, as they’re mutually exclusive benefits.
Special Retirement Provisions for Specific Federal Careers
Certain positions operate under modified retirement rules due to their demanding nature. These “special category” employees—including law enforcement officers, firefighters, air traffic controllers, and others—receive:
- Earlier eligibility: Typically retirement at age 50 with 20 years of service or any age with 25 years in covered positions
- Mandatory retirement ages: Generally age 57 for law enforcement and firefighters, age 56 for air traffic controllers
- Different pension calculations and supplement provisions
- Military service credit options through “military buyback”
Understanding these special provisions is necessary if you work in these fields, especially if transitioning between special category and standard positions.
Health Benefits and Financial Planning Considerations
Your pension is just one piece of your retirement puzzle. Other key considerations include:
- FEHB coverage: To maintain Federal Employees Health Benefits in retirement, you must have been enrolled for the five years immediately preceding retirement—a key rule since this valuable coverage continues with the same government contribution.
- Medicare: At 65, Medicare becomes important—Part A is generally premium-free, while Part B requires premiums. How Medicare coordinates with FEHB affects your overall health costs.
- TSP access: Penalties for early withdrawals typically apply before age 59½, though federal employees who retire during or after the year they turn 55 can avoid the 10% early withdrawal penalty.
- Required distributions: TSP and other retirement accounts require minimum distributions beginning at age 73 for individuals who turn 72 after December 31, 2022.
- Tax planning: Your tax situation changes in retirement—consider taxes on pension income, TSP withdrawals, and potentially Social Security benefits.
The interplay between these factors profoundly impacts your retirement security and should be evaluated alongside pension calculations when determining your optimal retirement timing.
Creating Your Personal Retirement Timeline
- Your pension at different potential retirement ages
- Projected Social Security benefits
- TSP growth and withdrawal strategies
- Health insurance needs and costs
- Personal health, family longevity, and lifestyle preferences
- Debt situation and ongoing financial obligations
Consider phased retirement as a middle ground, allowing part-time work while beginning to draw benefits.
A financial planner specializing in federal benefits can help navigate the complex interplay between these elements. Your ideal retirement age ultimately balances financial optimization with quality of life considerations. By understanding the key milestones in the federal retirement system, you can make an informed choice that supports your vision for retirement.
Do You Need Legal Help?
At The Law Office of Justin Schnitzer, we specialize in federal employment law services for federal employees across the country.
Whether you are facing disciplinary action, discrimination, retaliation, or other employment-related issues, our federal employment attorneys are here to provide the legal support and guidance you need. Contact us today or call 202-964-4878 to schedule your initial consultation and learn more about how we can help you with your federal employment law matter.
