Should I retire at MRA+10 or wait?

MRA+10 retirements take a permanent 5%-per-year reduction for each year under 62 unless you postpone the annuity. Postponing to 60 (with 20 years) or 62 can erase the reduction and preserve FEHB — usually worth the wait.

Is the FERS Supplement worth planning around?

Yes — it bridges from your retirement age to 62, but it's earnings-tested. A part-time job or consulting income above the annual limit reduces or eliminates it, so coordinate the supplement with any second-career plans.

Did the WEP/GPO repeal change anything for CSRS retirees?

Substantially. The Social Security Fairness Act repealed WEP and GPO for benefits payable for months after December 2023. A CSRS or CSRS-Offset retiree entitled to Social Security on another record, or to a spousal/survivor benefit, is no longer reduced. Old estimates may need an SSA recomputation.

Should I keep money in the TSP after I retire?

Often yes — the TSP's institutional fees are hard to beat and it now offers flexible withdrawals. Roll out only for a specific capability the TSP lacks (e.g., certain Roth conversion or estate strategies).

By profession · Federal employee

Retirement planning for federal civilian employees (FERS)

A profession-specific look at the retirement levers a federal employee actually has — pension rules, tax-advantaged accounts, and the Social Security wrinkles unique to your job.

Last reviewed May 4, 2026

Editorial review pending — see editorial process

The retirement landscape for a federal employee

Pension

FERS rests on three legs: the FERS basic annuity (a defined-benefit pension, generally 1.0% of high-3 salary per year of service, or 1.1% if you retire at 62+ with 20+ years), Social Security, and the Thrift Savings Plan with up to a 5% agency match. Minimum Retirement Age (MRA) is 55-57 depending on birth year. Immediate unreduced retirement requires age/service combinations such as MRA with 30 years, 60 with 20, or 62 with 5. The older CSRS system (pre-1984, now a small population) pays a much larger annuity but provides no Social Security through that service.

Tax-advantaged accounts

The TSP has the lowest fees of any US defined-contribution plan; Roth TSP is available. Contribute at least 5% to capture the full agency match — the most basic, highest-return move in FERS. The 2026 elective-deferral limit is $23,500 (under 50) or $31,000 with the age-50 catch-up. SECURE 2.0 adds a larger catch-up for ages 60-63 — confirm the exact 2026 figure on the IRS cost-of-living-adjustments page before relying on it. The FERS Annuity Supplement is a distinct benefit: for those who retire at MRA with 30 years (or 60 with 20) before age 62, it approximates the Social Security a year of FERS service would have earned and bridges to 62. It is earnings-tested — significant wages or self-employment income in retirement reduce or eliminate it.

Social Security

FERS employees pay into Social Security normally and face the ordinary claim-age decision. CSRS employees historically had non-covered service and were subject to WEP/GPO — but that has changed. The Social Security Fairness Act, signed January 5, 2025, repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) for benefits payable for months after December 2023. Public-sector retirees whose benefits were previously reduced are no longer subject to those offsets; SSA has been issuing adjusted and retroactive payments. A CSRS retiree (or CSRS Offset employee) who also earned Social Security through other work, or who is entitled to a spousal/survivor benefit, is no longer reduced by WEP or GPO. If your retirement estimate predates 2025 and still shows a WEP/GPO reduction, request a recomputation from SSA.

Common pitfalls

Frequent errors: retiring under MRA+10 without realizing the annuity is permanently reduced 5% for every year you are under 62 (postponing the annuity start avoids the reduction while keeping FEHB); forfeiting FEHB into retirement by not meeting the 'enrolled for the 5 years immediately before retirement' rule — keeping FEHB is often worth more than a chunk of the annuity; ignoring a military-service deposit ('buyback') that can add years to the FERS computation; and underusing the TSP's low-cost lifecycle funds out of inertia.

Worked example

A 47-year-old FERS employee, 22 years of service, $95,000 high-3 trajectory, $280,000 in TSP, plans to retire at MRA (57) with 32 years. Basic annuity: roughly 1.0% x 32 x ~$110,000 high-3, about $35,000/year, plus the FERS Supplement bridging 57 to 62, plus a TSP that has captured the full 5% match and compounded. From 57 the annuity plus supplement plus a modest TSP draw can cover baseline spending while FEHB (retained under the 5-year rule) handles healthcare until Medicare at 65. Enter the annuity and supplement as income, keep the TSP as the balance, and test the supplement's earnings test if a second-career income is likely.

Run the calculator with a typical federal employee starting point

Pre-filled: age 47, savings $280,000. Adjust to your actual numbers from there.

Run my numbers

Frequently asked

Should I retire at MRA+10 or wait?
MRA+10 retirements take a permanent 5%-per-year reduction for each year under 62 unless you postpone the annuity. Postponing to 60 (with 20 years) or 62 can erase the reduction and preserve FEHB — usually worth the wait.
Is the FERS Supplement worth planning around?
Yes — it bridges from your retirement age to 62, but it's earnings-tested. A part-time job or consulting income above the annual limit reduces or eliminates it, so coordinate the supplement with any second-career plans.
Did the WEP/GPO repeal change anything for CSRS retirees?
Substantially. The Social Security Fairness Act repealed WEP and GPO for benefits payable for months after December 2023. A CSRS or CSRS-Offset retiree entitled to Social Security on another record, or to a spousal/survivor benefit, is no longer reduced. Old estimates may need an SSA recomputation.
Should I keep money in the TSP after I retire?
Often yes — the TSP's institutional fees are hard to beat and it now offers flexible withdrawals. Roll out only for a specific capability the TSP lacks (e.g., certain Roth conversion or estate strategies).

Primary sources

Every profession-specific rule above traces to one of these primary sources. We re-verify each link annually; current as of the last-reviewed date below.