Federal Retirement FAQs

Your retirement eligibility depends on your age and years of federal service. Generally, FERS employees may qualify for an immediate retirement at their Minimum Retirement Age (MRA) with at least 30 years of service, age 60 with 20 years of service, or age 62 with at least 5 years of service. Special provisions may apply to law enforcement officers, firefighters, air traffic controllers, and certain other federal employees. Those retiring after age 62 with 20+ years of service may also receive a 10% increase to their pension, making this a popular milestone amongst federal employees.

The FERS Supplement is a temporary benefit available to certain federal employees who retire before age 62 with an immediate, unreduced retirement benefit. It is designed to bridge the gap until one is eligible to start Social Security, ending the month prior to one reaching age 62. It is calculated by taking the years of service, divided by 40, multiplied by their anticipated Social Security benefit at age 62. The Social Security earnings test may reduce or eliminate the supplement if a recipient has earnings from other employment that exceed annual limits.

Want to learn more? Read our Blog Post: The Essentials of the FERS Special Retirement Supplement: Bridging the Gap to Social Security

Most FERS employees are covered by Social Security and may be eligible to receive both a FERS pension and Social Security benefits in retirement. The timing of when to claim Social Security can significantly impact your lifetime benefits and should be coordinated with your pension, TSP withdrawals, and other retirement income sources. It’s beneficial to consider your health, family history, retirement timeline, and taxation to make the best financial decision for you.

Want to learn more? Read our Blog Post: Finish Strong: Essential Retirement Planning Tips for Federal Employees

Many federal employees can continue their Federal Employees Health Benefits (FEHB) coverage into retirement if they meet certain eligibility requirements. In most cases, you must retire on an immediate annuity and have been enrolled in FEHB for the five years immediately preceding retirement, or since your first opportunity to enroll. A postponed retirement (not deferred retirement) may also make one eligible to pick FEHB back up in retirement.

Want to learn more? Read our Blog Post: OPM Clarifies FEHB Rules for Married Federal Employees

Both options offer valuable tax advantages. Traditional TSP contributions may reduce your taxable income today, while qualified Roth TSP withdrawals are taxed now but grow tax-free afterwards. The right choice depends on your current tax situation, future income expectations, legacy planning goals, and overall retirement strategy. Many federal employees use a combination of both.

Want to learn more? Read our Blog Post: TSP Made Simple: Smart Choices for Investing and Withdrawing

There is no one-size-fits-all answer. The amount needed depends on your retirement spending goals, pension income, Social Security benefits, healthcare costs, and other assets. A comprehensive retirement analysis can help determine whether your savings are sufficient to support your desired lifestyle.

Traditional TSP withdrawals are generally taxed as ordinary income in the year they are received. Qualified Roth TSP withdrawals are generally tax-free. The timing and sequencing of withdrawals from retirement accounts can have a significant impact on taxes, Medicare premiums, and long-term retirement income planning.

You can begin receiving Social Security benefits as early as age 62, but your monthly benefit will be reduced. Waiting beyond full retirement age may increase your benefit through delayed retirement credits. The optimal claiming age varies based on factors such as life expectancy, marital status, retirement income needs, tax and Medicare premium brackets, and survivor benefit considerations.