What is the federal retirement age?

There is no single federal retirement age. FERS employees can retire at age 62 with 5 years of service, age 60 with 20 years, or at their Minimum Retirement Age (MRA) with 30 years for full benefits. MRA ranges from 55 to 57 depending on birth year. You can also retire at MRA with 10+ years, but with a 5% penalty per year under age 62.

How is my FERS pension calculated?

Your FERS pension is calculated using the formula: High-3 Salary × Years of Service × Multiplier (1% or 1.1%). The 1.1% multiplier applies if you retire at age 62 or older with at least 20 years of service.

What is the high-3 salary?

Your high-3 salary is the average of your highest 36 consecutive months of basic pay. For most employees, this is their final three years of service, but it could be from an earlier period if you had higher earnings then.

When can I retire with full FERS benefits?

You can retire with full FERS benefits at: age 62 with 5 years of service, age 60 with 20 years of service, or at your Minimum Retirement Age (MRA) with 30 years of service.

What is the early retirement penalty?

If you retire at your MRA with 10-29 years of service, your pension is reduced by 5% for each year you are under age 62. For example, retiring 4 years before age 62 results in a 20% reduction.

What is the FERS Supplement and how is it calculated?

The FERS Supplement is a temporary benefit paid from retirement until age 62, approximating your Social Security benefit. It equals your estimated Social Security benefit at 62 multiplied by the ratio of your FERS service to 40 years. Only available if you retire at MRA with 30 years, under VERA, or special provisions.

What is the difference between postponed and deferred retirement?

Postponed retirement: You leave at MRA+10 but delay receiving your pension until age 62 to avoid the 5% per year penalty. Deferred retirement: You leave before meeting any retirement eligibility (but with 5+ years), and your pension starts at age 62. Both eliminate early retirement penalties.

How much does the survivor benefit cost?

The full survivor benefit (50% to your spouse) costs 10% of your gross pension. A partial survivor benefit (25% to your spouse) costs 5% of your gross pension.

Does unused sick leave count toward my pension?

Yes! Unused sick leave is converted to additional service credit for your pension calculation. 2,087 hours equals one year of credit. It counts toward your pension amount but not toward eligibility requirements.

What pay is included in my High-3 average salary?

Your High-3 includes basic pay, locality pay, and certain special pay rates. It does NOT include overtime, bonuses, cash awards, holiday pay, night differential, or Sunday premium pay. Only your scheduled rate of pay counts.

How do breaks in federal service affect my pension?

Breaks in service do not reduce your service credit, all your federal civilian time adds up. However, you must have at least 5 years of creditable civilian service to qualify for a FERS pension. If you left and returned, your prior service still counts.

What are the most common FERS calculation mistakes?

The biggest mistakes are: (1) Using gross pay instead of basic pay for High-3, (2) Forgetting the 5% per year early retirement penalty for MRA+10, (3) Not accounting for the survivor benefit reduction, and (4) Assuming sick leave counts toward eligibility (it only adds to the pension amount, not years for eligibility).

Does military service count toward my FERS pension?

Military service can count if you complete a military deposit (buyback). You pay 3% of your military basic pay (plus interest if more than 3 years since separation) to get credit. Without the deposit, military time may not count, and your Social Security benefit could be reduced.

How is my FERS pension taxed?

Your FERS pension is subject to federal income tax. The taxable portion depends on your contributions: employee contributions were already taxed, so only the government's portion and interest are taxable. Typically, 95-98% of your pension is taxable. State tax treatment varies, some states fully exempt federal pensions.

Does my FERS pension increase with inflation?

Yes. FERS annuitants receive annual Cost-of-Living Adjustments (COLAs) based on the Consumer Price Index. If inflation is 2% or less, you get the full adjustment. If 2-3%, you get 2%. If over 3%, you get 1% less than the CPI increase. COLAs start the year after you turn 62 (or immediately for disability/survivor annuities).

What counts as creditable service for FERS?

Creditable service includes: all civilian federal employment, military service (if you pay the deposit), Peace Corps/AmeriCorps VISTA time, certain DC government employment, and periods of OWCP workers' compensation. It does NOT include: federal contractor time, NAF employment (unless converted within 3 days), or LWOP over 6 months per year.

How does federal law enforcement officer (LEO) retirement work?

Federal LEOs with "6(c)" special provisions coverage can retire at age 50 with 20 years of covered service, or at any age with 25 years of covered service. The pension formula is more generous: 1.7% of High-3 for the first 20 years, then 1% thereafter. LEOs also receive the FERS Supplement without earnings limits. Premium pay and availability pay count toward High-3. There is mandatory retirement at age 57 (extendable to 60). Note: Not all federal law enforcement positions qualify, only those designated as 6(c) covered positions.

Can I use this calculator for USPS postal retirement?

Yes. USPS career employees follow the same FERS retirement rules as other federal employees. If you were hired after 1983, you are under FERS with the standard eligibility: MRA+30 for full benefits, age 60+20, age 62+5, or MRA+10 with the 5% per year penalty. If hired before 1984, you may be under CSRS with different rules (age 55+30, 60+20, or 62+5). The main difference is that postal pay is set by union contracts rather than the GS schedule, and USPS pays for its own retirement costs rather than receiving appropriations.

FERS · Retirement

FERS Retirement Calculator

Estimate your Federal Employees Retirement System (FERS) pension using official formulas. Model different retirement scenarios, survivor benefits, and service credits.

Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov · Updated June 2026

High-3 salary

Date of birth

Social Security at 62 (monthly)

Retirement timing

Approx. retirement date: 1/1/2027

Years of service

Your retirement snapshotEligible for an immediate, unreduced FERS annuity. No early retirement reduction applied. Annuity commencement age: 62.

$31,350

Annual pension

1.1% multiplier

$2,612

Monthly pension

Before taxes & FEHB

1.1%

Multiplier applied

Age 62+ · 20+ yrs

33%

Income replaced

Pension ÷ High-3

$31,350 unreduced annuity

0% survivor reduction

0% early-retirement reduction

Service credit

Eligibility service30 years

Sick-leave credit0 months

Service used in annuity30 years

Age milestones

Age at retirement62 years

Minimum Retirement Age56.166666666666664

Survivor electionNone

Pension = High-3 × Years × Multiplier. Multiplier is 1.1% at age 62+ with 20+ years, otherwise 1.0%. Estimates only — actual figures depend on your service computation date and OPM adjudication. Get your SSA estimate.

Planning your next chapter?

Get an agency-ready professional headshot before you update your LinkedIn or resume.

Try FedShot Free →

How the FERS pension works

Your FERS basic annuity rests on three numbers: your High-3 (the average of your highest 36 consecutive months of basic pay), your years of creditable service, and a multiplier. Multiply them together and you have your unreduced annual pension.

This calculator uses the official formula: High-3 × Years × Multiplier. The multiplier is almost always 1.0% — but it jumps to 1.1% if you retire at age 62 or later with at least 20 years of service. On a 30-year career that single tenth of a percent is worth thousands a year for life, which is why timing matters so much.

The calculator automatically determines your eligibility for immediate, MRA+10, postponed, or deferred retirement, and calculates any early retirement penalties. If eligible, it also estimates your FERS Supplement — the temporary bridge payment until age 62 that approximates your Social Security benefit.

Two careers, two pensions

Real numbers showing what federal employees at different career stages can expect.

Case study · 20 years

High-3$128,000

ProfileGS-13 Step 10, DC locality

Age / service60 · 20 yrs

Multiplier1.0%

$128,000 × 20 × 1.0% =

$25,600 / year

No FERS Supplement · no early retirement penalty · eligible at 60+20

Case study · 30 years

High-3$155,000

ProfileGS-14 Step 10, DC locality

Age / service57 · 30 yrs (MRA)

Multiplier1.0%

$155,000 × 30 × 1.0% =

$46,500 / year

FERS Supplement eligible · MRA+30 immediate · no penalty

What the 1.1% is worth

If the 30-year employee waited until age 62 with 35 years: $160,000 × 35 × 1.1% = $61,600/year. That's $15,100 more per year for life — the reward for reaching age 62 with 20+ years. Use the calculator above to model your specific scenario.

What counts as creditable service

Your total creditable service determines both your pension amount and retirement eligibility. A few common categories surprise people.

Counts toward service

✓All federal civilian employment

✓Military service (with buyback deposit)

✓Unused sick leave (pension amount only)

✓Part-time service (prorated)

✓Peace Corps / VISTA service

✓Transferred CSRS service

Does not count

✕Military service without buyback

✕Contractor / private sector time

✕LWOP over 6 months per year

✕State / local government service

✕NAF employment (without conversion)

✕Periods with refunded retirement contributions

Military Buyback: Pay 3% of your military basic pay (plus interest if separated more than 3 years ago) to get credit. This is almost always worth it — the return on investment is excellent. Contact your HR office to start the deposit process.

When you can retire

The age-and-service combinations that unlock an immediate FERS annuity.

FERS immediate retirement eligibility combinations
Your age	Years needed	Annuity
MRA (55–57)	30	Full + FERS Supplement
MRA (55–57)	10–29	5%/yr penalty (or postpone)
60	20	Full, no supplement
62	5	Full, 1.1% if 20+ yrs

MRA (Minimum Retirement Age) is 57 for anyone born in 1970 or later. MRA+10 retirements are reduced 5% for each year you are under 62.

Postponed vs. deferred

These two retirement types are often confused, but the distinction is critical — especially for health insurance.

Postponed

For MRA+10 retirees who delay collecting to reduce or erase the age penalty. You separate at MRA with 10+ years but “postpone” receiving your pension until age 62. The key advantage: you can keep FEHB by reinstating it when your annuity begins.

✓ Retains FEHB & FEGLI

Deferred

For employees who leave federal service before retirement age (but with 5+ years) and claim the pension later at age 62. Simpler to elect, but you permanently lose FEHB coverage during the deferral period.

✕ No FEHB in retirement

The FERS Supplement

If you retire before 62 with an immediate, unreduced annuity, the Special Retirement Supplement approximates the Social Security you've earned from federal service — and bridges the gap until you can claim it.

Supplement ≈ (Years of FERS service ÷ 40) × your estimated SS benefit at 62

Eligible

✓MRA + 30 years of service (immediate retirement)

✓VERA (Voluntary Early Retirement Authority)

✓Special provisions: LEO, firefighters, air traffic controllers

✓Discontinued service (involuntary separation)

Not eligible

✕MRA+10 retirees (even taking full penalty)

✕Age 60 + 20 years retirees

✕Deferred retirement

✕Postponed retirement

Earnings limit: the supplement is reduced if your post-retirement earnings exceed the annual limit ($24,480 in 2026) — reduced $1 for every $2 over — and it stops entirely at 62.

Five costly FERS mistakes

Federal employees often make these errors when estimating their pension. Avoid these pitfalls:

Using gross pay for High-3

Your High-3 is based on basic pay only — not overtime, bonuses, awards, night differential, or Sunday premium. Many employees overestimate their pension by including these amounts.

Forgetting the early retirement penalty

MRA+10 retirees face a permanent 5% reduction per year under age 62. Retiring at 57 instead of 62 means a 25% lifetime reduction, not just until you turn 62.

Ignoring survivor benefit costs

Electing the full survivor benefit (50% to spouse) costs 10% of your gross annuity. A $50,000 pension becomes $45,000 net. Plan for this reduction in your retirement budget.

Counting sick leave for eligibility

Sick leave adds to your pension amount but not your service time for eligibility. You can't use sick leave to meet the 30-year, 20-year, or 5-year service requirements.

Misunderstanding the 1.1% multiplier

You get the 1.1% multiplier only if you retire at age 62+ with 20+ years. Otherwise it's 1.0%. On a 30-year career at $100,000 High-3, that's $33,000 vs $30,000/year — a meaningful lifetime difference.

Retirement date optimizer

See your eligibility timeline and find your optimal retirement date. Enter your birth date and service computation date to get started.

Retirement eligibility timeline

Enter your birth year and federal hire date to see when each retirement pathway unlocks.

More FERS calculators