When is the optimal age to retire under FERS?

The optimal FERS retirement age depends on your specific career timeline. Retiring at 62 or later with 20+ years unlocks the 1.1% pension multiplier (vs. 1%), adds more years of service to the pension formula, and allows continued FEHB and TSP contributions. Use a retirement timing calculator to model your specific break-even point.

What is the break-even age for delaying FERS retirement?

The break-even age for delaying retirement is typically 10–14 years after your potential early retirement date. For example, delaying from MRA+30 to age 62 costs several years of pension income but gains the 1.1% multiplier and higher high-3. A timing calculator shows the exact crossover point for your situation.

Does working longer significantly increase the FERS pension?

Yes. Each additional year adds to both your years-of-service count and potentially your high-3 average salary. Combined with the 1.1% multiplier bonus at 62+20, working to age 62 instead of MRA (57) can increase the pension by 30–40% in many scenarios.

When Should a Federal Employee Retire?

Retirement Timing Analysis

Not shown: FERS Annuity Supplement. If you retire at MRA with full-career service (30+ YOS) before age 62, you may also receive the FERS Annuity Supplement — a bridge payment until SS begins at 62. This tool does not currently model that benefit. It could add $10,000–$20,000/year to your pre-62 income depending on your SS earnings history. Consult OPM or your agency HR for your eligibility and estimated amount.

Annual cash flow gap at your planned retirement — salary vs. retirement income

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— per year more you earn by working instead of retiring.

Working salary

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Retirement income

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Lifetime value gain /yr

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Planned retirement age

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Income comparison: working vs. retirement

Compare your working salary against projected first-year retirement income for each potential retirement year.

Lifetime value analysis

Total lifetime present value and marginal gain from working each additional year.

Year-by-year breakdown

Each row shows what your salary vs first year retirement income would be if you retired that year.

Retire year	Age	YOS	Working salary	Retirement income				Cash flow gap ?	Marginal gain ?
				Pension	TSP draw	SS	Total

What this means

Social Security timing is separate from when you retire from federal service. Delaying SS from 62 to 70 can increase your benefit by up to 32%. That decision happens independently of your federal retirement date. The SS column above uses the claim age selected in assumptions.

Note: retirement income is typically taxed at a lower effective rate than working income — no payroll taxes, lower bracket, standard deduction still applies. Your after-tax cash flow gap is likely smaller than the headline figure above.

When Should You Retire?