FERS Retirement Age Explained: When You Can Retire, What It Means, and How to Decide

The federal government offers one of the most stable and flexible retirement systems in the country. Yet many employees are surprised to learn that there is no single minimum retirement age that applies to everyone. Instead, your retirement age depends on your federal retirement system, years of service, separation type, and personal circumstances.

This flexibility is helpful but it also creates confusion. In this guide, we’ll break down the minimum retirement age for federal employees under both CSRS and FERS, explain the alternative pathways that allow employees to leave earlier, and outline key considerations before you make a decision.

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Understanding the Basics of Federal Retirement Systems

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Federal employees today are covered under one of two systems:

• CSRS (Civil Service Retirement System) – for employees hired before 1987
  
  
• FERS (Federal Employees Retirement System) – for employees hired in or after 1987
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• Each system has different - rules for when you can retire and how much you receive.

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Minimum Retirement Age Under CSRS

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If you joined federal service before 1987, you may be under CSRS, a system that operated for more than 60 years.

Under CSRS, employees technically can retire at any time. However, employees generally wait until they are eligible for an immediate, unreduced retirement, which typically occurs at:

• Age 55 with 30 years of service
  
  
• Age 60 with 20 years of service
  
  
• Age 62 with 5 years of service
  
  

CSRS employees do not have a traditional MRA the way FERS employees do, but these benchmarks function similarly in practice.

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Minimum Retirement Age (MRA) Under FERS

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For employees under FERS, the Minimum Retirement Age is tied directly to your birth year.

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Your MRA determines when you can retire but not whether you qualify for a full benefit.

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When Can You Retire With an Unreduced FERS Benefit?

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Reaching your MRA alone doesn’t guarantee a full annuity. Unreduced FERS retirement requires a combination of age and service:

• MRA with 30 years of service
  
  
• Age 60 with 20 years
  
  
• Age 62 with 5 years
  
  

Scenario Example: MRA vs Age 60 vs Age 62

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Employee A

• Age: 57 (MRA)
  
  
• Service: 30 years
  
  
• Result: Full, unreduced FERS annuity
  
  

Employee B

• Age: 60
  
  
• Service: 18 years
  
  
• Result: Not eligible for full retirement; must work 2 more years
  
  

Employee C

• Age: 62
  
  
• Service: 6 years
  
  
• Result: Eligible for immediate unreduced retirement, but lower annuity due to fewer years of service
  
  

These distinctions matter because they determine whether your benefit is reduced or fully preserved.

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Early and Reduced-Benefit Retirement Options

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Federal employees may retire early under several alternative pathways. These options allow earlier separation but often come with trade-offs.

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MRA+10 Retirement

You may retire at your MRA with at least 10 years of service, but your benefit will be reduced 5% for every year you are under age 62.

Example Calculation

Employee retires at age 57 with 20 years of service.
Age 62 − 57 = 5 years early
5 years × 5% penalty per year = 25% permanent reduction

Employees may postpone the annuity to avoid the reduction, but postponing changes FEHB/FEGLI eligibility.

Deferred Retirement

Employees who leave federal service before reaching their MRA may receive a deferred annuity, as long as they have at least five years of service.

Example:
An employee separates at age 48 with 12 years of service. They can claim a deferred benefit at their MRA (reduced benefit) or age 62 (unreduced benefit), but will lose FEHB.

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Disability Retirement

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Employees qualify for disability retirement if:

• They have 18 months of creditable service
  
  
• They have a long-term disabling condition
• The agency cannot accommodate the condition
  
  

Disability retirement is available at any age if these criteria are met.

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Involuntary Early Retirement (VERA)

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When agencies downsize or reorganize, they can offer early retirement under VERA rules.

• Employees can retire at age 50 with 20 years of service
  
  
• Or at any age with 25 years of service
  
  
• Benefits are unreduced

These programs provide employees facing separation the option to maintain stability in retirement.

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How Retirement Age Affects Your Benefits

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Beyond your annuity, retiring earlier affects several core components of total retirement income.

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Impact on Your FERS Annuity

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Most employees receive a 1% multiplier, calculated as:

1% × high-3 salary × years of service

However, retiring at age 62 with 20+ years increases the multiplier to 1.1%, a meaningful long-term difference.

Example:

• High-3 salary: $92,000
  
  
• Years of service: 30
  
  

At age 61 → 1% × 92,000 × 30 = $27,600/yr
At age 62 + 20 years → 1.1% × 92,000 × 30 = $30,360/yr

A difference of $2,760 per year—for life.

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Effect on Social Security

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You may begin Social Security at age 62, but full benefits start at your full retirement age, and benefits increase by delaying up to age 70.

Because of this, many employees choose to:

• Retire under FERS
  
  
• Delay Social Security
  
  
• Use annuity + TSP withdrawals as a bridge
  
  

Special Retirement Supplement (SRS)

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If you retire with MRA + 30 years or age 60 + 20 years, you may qualify for the Special Retirement Supplement until age 62.

Leaving early may cause you to lose SRS eligibility entirely.

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Health Insurance (FEHB)

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FEHB is one of the most valuable benefits in federal retirement.
To keep FEHB into retirement:

• You must have FEHB for the 5 years prior to retirement, and
  
  
• You must retire with an immediate (not deferred) annuity
  
  

Postponing or deferring your annuity may cause FEHB loss.

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Decision Framework: Choosing the Right Time to Retire

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Because there are multiple pathways and age rules, employees should consider:

Years of service

Are you near a threshold (e.g., 20 years, 30 years)?

Age milestones

Would waiting until 60 or 62 open up more favorable formulas?

FEHB implications

Will your chosen pathway preserve health coverage?

Long-term financial impact

Even a one-year delay can alter your lifetime benefit significantly.

Personal health and career goals

Not all decisions are financial health, stress, job demands, and relocation often play important roles.

Ongoing Changes and Future Considerations

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• MRA increases for younger generations
  
  
• Potential legislative adjustments
  
  
• Workforce trends shifting average retirement ages
  
  
• Evolving agency restructuring initiatives (affecting early-out opportunities)
  
  

Federal employees should monitor OPM guidance, agency notices, and legislative updates to stay informed.

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Schedule a free consultation with our federal retirement experts.

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Actionable Takeaways

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• Confirm your retirement system (FERS or CSRS) and birth year MRA.
  
  
• Identify which retirement category you qualify for (immediate, early, deferred, disability).
  
  
• Review how different retirement ages affect your annuity, FEHB, and SRS.
  
  
• Run calculations using your high-3 salary to understand the financial impact of retiring early.
  
  
• Consider waiting for milestone ages (60 or 62) if financially advantageous.
  
  
• Speak with a retirement specialist before making a final decision.
  
  

Conclusion

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Federal retirement rules offer significant flexibility, but this flexibility comes with important considerations. Understanding how your retirement age, service time, and benefit structure interact will help you avoid costly mistakes and make an informed choice about when to retire.

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Content Disclaimer

The information provided in this article is for general educational purposes only and is not intended as legal, financial, or tax advice. Federal retirement eligibility and benefit calculations depend on individual employment history, service records, and agency policies. Employees should confirm specific details with their agency’s human resources office, the Office of Personnel Management (OPM), or a qualified federal retirement professional before making any retirement decisions. While every effort has been made to ensure accuracy, federal regulations and agency procedures may change without notice.

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Content References

The material in this article is based on publicly available federal guidance and authoritative sources, including:

• U.S. Office of Personnel Management (OPM) – FERS and CSRS retirement eligibility, age and service requirements, disability retirement criteria, and benefit calculations
  
  
• U.S. Office of Personnel Management Retirement Handbook – Chapters covering immediate, deferred, early, and disability retirement provisions
  
  
• Civil Service Retirement System (CSRS) Regulations – Title 5, Code of Federal Regulations
  
  
• Federal Employees Retirement System (FERS) Regulations – Title 5, Code of Federal Regulations
  
  
• U.S. Customs and Border Protection (CBP) – Minimum Retirement Age (MRA) charts and retirement overview
  
  
• Social Security Administration (SSA) – Guidance on early, full, and delayed Social Security benefits
  
  
• Federal agency VERA/VSIP policy notices – Early retirement and separation authority criteria
  
  
• Publicly accessible federal retirement education resources used for clarification of service rules, age thresholds, and benefit options

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