For many federal employees, age 57 is the goal.
That’s because it’s typically your Minimum Retirement Age (MRA) under the Federal Employees Retirement System.
But the real question is:
Can you actually afford to retire at 57?
Step 1: Do You Qualify?
To retire at MRA (around 57), you need:
- At least 30 years of service
OR
- Age 60 with 20 years
OR
- Age 62 with 5 years
Step 2: What You Get at 57
If eligible, you may receive:
1. Immediate Pension
Based on your High-3 and years of service
2. FERS Supplement (Temporary)
This is designed to:
- Bridge income until Social Security at 62
But:
- It ends at age 62
- It may be reduced if you have outside income
Step 3: The Income Gap Problem
Here’s where many people get surprised.
At 57:
- You don’t have Social Security yet
- Your pension may only cover part of expenses
Example Scenario
- Pension: $50K/year
- Needed income: $100K
Gap: $50K/year
This gap must come from:
- TSP withdrawals
- Other savings
Step 4: Healthcare Considerations
If you meet eligibility requirements, you can keep:
- FEHB (health insurance)
This is a major advantage vs private sector retirees.
Step 5: TSP Strategy
You’ll need to think about:
- Withdrawal rate
- Market risk
- Longevity
Retiring at 57 means:
- Your money may need to last 30+ years
When Retiring at 57 Works Well
- You have strong TSP savings
- You have low expenses
- You’ve planned income streams carefully
When It’s Risky
- You rely heavily on pension alone
- You haven’t modeled withdrawals
- You underestimate expenses
Bottom Line
- You can retire at 57
- But affordability depends on your full financial picture
