There’s no universal “right” age to retire. But under FERS, understanding how your age and years of service interact is critical to making an informed decision. Image: Pla2na/Shutterstock.com
By: Dallen HawsOne of the most common questions federal employees ask is, “When can I retire?” The answer depends on two key factors: your age and your years of creditable service. Under the Federal Employees Retirement System (FERS), these two elements — along with the type of retirement you choose — directly impact when you’re eligible to retire, how much your pension will be, and what other benefits you’ll receive.
While there’s no single “perfect” age for everyone, understanding the rules can help you pick the retirement date that works best for your goals and lifestyle. This article breaks down the main retirement milestones, the incentives built into the system, and the trade-offs you need to consider.
Understanding Your Minimum Retirement Age (MRA)
Your MRA is the earliest age at which you can retire with certain benefits under FERS. It ranges between 55 and 57 depending on your birth year:
| Year of Birth | MRA |
|---|---|
| Before 1948 | 55 |
| 1948 | 55 and 2 months |
| 1949 | 55 and 4 months |
| 1950 | 55 and 6 months |
| 1951 | 55 and 8 months |
| 1952 | 55 and 10 months |
| 1953–1964 | 56 |
| 1965 | 56 and 2 months |
| 1966 | 56 and 4 months |
| 1967 | 56 and 6 months |
| 1968 | 56 and 8 months |
| 1969 | 56 and 10 months |
| 1970 or later | 57 |
Your MRA is a key part of several retirement eligibility categories. Let’s go through the main ones.
1. Immediate Retirement
This is the most common type of retirement. You qualify if you meet one of these combinations:
● MRA + 30: You’ve reached your MRA and have at least 30 years of creditable service.
● 60 + 20: You’re at least age 60 with at least 20 years of service.
● 62 + 5: You’re at least age 62 with at least 5 years of service.
The 10% Pension Bonus at 62…
If you’re at least 62 and have at least 20 years of service, your pension multiplier increases from 1% to 1.1%. That’s a 10% boost to your pension for life.
Example:
● 30 years of service
● High-3 salary: $100,000
● Standard multiplier (1%): $30,000/year pension
● Higher multiplier (1.1%): $33,000/year pension
*That’s an extra $3,000 per year.
2. MRA+10 Retirement
If you’ve reached your MRA and have at least 10 years of service (but not enough to qualify for immediate voluntary retirement), you can retire under the MRA+10 provision.
The downside? Your pension will be reduced by 5% for every year you retire before age 62. For example, retiring three years early means a 15% permanent reduction.
Avoiding the Penalty:
You can postpone or defer your pension until age 62 (or age 60 with 20 years) to avoid the 5% per year reduction.
● Postponed Retirement: You maintain eligibility for FEHB and FEGLI when your pension starts (as long as you were eligible while employed). You do not have FEHB or FEGLI coverage while your pension is postponed.
● Deferred Retirement: You get your pension later, but you lose FEHB and FEGLI coverage.
3. Special Cases
There are also provisions for:
● Involuntary or Discontinued Service Retirement
● FERS Disability Retirement
These come with their own rules and exceptions, so if you find yourself in this situation, make sure you fully understand the impacts before making a decision.
Why Age 62 Is a Big Milestone
For many FERS employees, age 62 is a key decision point. Several benefits kick in or improve significantly at that age:
- 10% Pension Bonus — The jump from a 1% multiplier to 1.1% with at least 20 years of service.
- Social Security Eligibility — You can start Social Security benefits (though whether you should is another question entirely).
- Immediate COLAs — Retirees under FERS don’t receive COLAs on their pension until age 62. If you retire earlier, your pension is frozen until then. Retiring at 62 means you start receiving COLAs right away. Note: One exception to this is a special provisions retirement (Firefighters, Law Enforcement Officers, Air Traffic Controllers, etc.).
The Impact of Working Longe
Even beyond the age milestones, every extra year (or month) you work:
● Increases your years of service — which directly raises your pension.
● Raises your High-3 salary — if your final years are your highest paid.
● Gives you more time to contribute to the TSP — adding to your retirement savings.
● Shortens the length of retirement you’ll need to fund — reducing the strain on your savings.
Trade-Offs of Retiring Early vs. Later
Retiring earlier can mean more years to enjoy life outside of work — but potentially with a smaller pension, delayed COLAs, and less time to save. Retiring later can mean more income and security — but fewer years in retirement.
Here are some things to consider:
● Financial readiness — Can you maintain your lifestyle without working
● Health and energy — Do you want to maximize your healthy, active years?
● Personal goals — Travel, hobbies, family time, second careers.
Final Thoughts
There’s no universal “right” age to retire. But under FERS, understanding how your age and years of service interact is critical to making an informed decision.
Retirement is one of the most important financial decisions you’ll ever make. Going in with your eyes wide open — and knowing exactly how your benefits work — can help you make the choice that best serves your life, your health, and your goals.
Dallen Haws is a Financial Advisor who is dedicated to helping federal employees live their best life and plan an incredible retirement. He hosts a podcast and YouTube channel all about federal benefits and retirement. You can learn more about him at Haws Federal Advisors.
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
The Best Ages for Federal Employees to Retire
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process
FERS Retirement Guide 2025 – Your Roadmap to Maximizing Federal Retirement Benefits
