FERS Retirement Calculator
Estimate your FERS Basic Annuity based on high-3 salary, years of federal service, and retirement age. Use this as one leg of the FERS three-legged retirement stool: Basic Annuity + Social Security + TSP.
Reviewed & updated for 2026 · How we calculate
FERS multiplier rules
| Retirement scenario | Multiplier | Notes |
|---|---|---|
| Standard FERS | 1.0% | Most retirees |
| Age 62+ with 20+ years | 1.1% | 10% higher annuity |
| FERS LEO / Firefighter / ATC | 1.7% first 20 yrs | Then 1% after 20 years |
| FERS MRA + 10 (early) | 1.0% | 5% reduction per year under 62 |
The three legs of FERS retirement
FERS was designed in 1987 to replace the old CSRS pension, which paid a generous lifetime annuity but no Social Security. The new system intentionally split retirement income across three sources so federal workers wouldn't depend on any one of them. Each leg has different rules, tax treatment, and risk profile:
- FERS Basic Annuity is the defined-benefit pension calculated above. For most retirees, it replaces 30-40% of pre-retirement income. It's COLA-adjusted starting at age 62 (a smaller increase than full CPI) and continues for life.
- Social Security kicks in at 62 (reduced) or 67 (full). Federal employees pay FICA like everyone else and receive standard Social Security benefits — usually another 20-30% of income replacement at full retirement age.
- Thrift Savings Plan (TSP) is the federal 401(k). The government auto-contributes 1% regardless of what you contribute, then matches 100% of your first 3% and 50% of the next 2%. Contribute at least 5% to get the full 5% match — leaving free money behind is the single most common FERS mistake.
The three-legged design means full retirement income for FERS employees typically lands at 75-90% of pre-retirement pay if all three legs are maximized. Skipping the TSP match cuts that to 60-70%. Retiring before 62 without the supplement and TSP-bridging strategy can drop you below 50% for years.
Retiring at different ages: what the numbers look like
The most consequential decision FERS-covered employees make is when to retire. The same salary and years of service produce dramatically different pensions depending on retirement age. This table assumes a $100,000 high-3 salary and shows the multiplier rule in action:
| Scenario | Multiplier | Annual pension | Income replacement |
|---|---|---|---|
| Age 57, 20 years (MRA + 10) | 1.0% (reduced 25%) | $15,000 | 15% |
| Age 60, 20 years | 1.0% | $20,000 | 20% |
| Age 62, 20 years | 1.1% | $22,000 | 22% |
| Age 62, 25 years | 1.1% | $27,500 | 27.5% |
| Age 62, 30 years | 1.1% | $33,000 | 33% |
| Age 65, 35 years | 1.1% | $38,500 | 38.5% |
Working from age 60 to 62 with 20+ years of service costs roughly $2,000 a year in lost pension (the 1.1% bonus) plus two additional years of service. For most people that translates to an extra $6,000-$10,000 per year of pension for life — a substantial reward for two more years of work.
Common FERS mistakes that cost real money
FERS is full of rules that look minor on paper but have outsized consequences over a 25-30 year retirement. The four mistakes below show up regularly in OPM's annual error analysis:
- Retiring before earning the 1.1% multiplier. A career fed who leaves at age 61 with 30 years gets 1.0% × 30 × high-3 = 30% replacement. One more year (age 62, 31 years) jumps to 1.1% × 31 = 34.1%. That's a permanent $4,100 per year of additional pension on a $100,000 high-3, just for one extra year of service.
- Buying back military or temporary service too late. If you served in the military or worked as a temp federal employee, you may be able to "buy back" that time and add it to your FERS years. The cost rises with each year you wait because interest accrues. Buying back early in your career is dramatically cheaper than buying back near retirement.
- Not contributing to TSP up to the 5% match. If you earn $80,000 and contribute 0%, you leave $4,000 a year on the table. Over 30 years with market returns, that's roughly $300,000+ of lost retirement savings. Always contribute at least 5%.
- Misunderstanding the survivor benefit election. The default election is 50% survivor benefit, costing 10% of your annuity for life. If you elect "no survivor" but your spouse outlives you, they keep nothing. If you elect 50% but die first, your spouse gets half your monthly pension for life. Most couples should elect at least 25% to provide some lifetime income to a surviving spouse.
A single appointment with a federal employee benefits counselor (free through your agency's HR office) 5-10 years before retirement is one of the highest-value financial conversations a fed can have. They catch errors, run scenarios, and explain the specific deadlines that affect your pension.
FAQs
What is FERS?
FERS (Federal Employees Retirement System) is the pension system for federal government employees hired after 1984. FERS has three parts: (1) FERS Basic Annuity (pension), (2) Social Security, (3) Thrift Savings Plan (TSP, like a 401k). Older feds may still be under the CSRS (Civil Service Retirement System) system, which has different rules.
How is FERS pension calculated?
Standard formula: Annual annuity = High-3 salary × Years of service × 1%. If you retire at age 62+ with 20+ years of service: factor is 1.1% (instead of 1.0%). Example: 30 years service, high-3 of $90,000 = 90,000 × 30 × 0.01 = $27,000/year pension. Retiring at 62 with 20 years: × 1.1% multiplier.
What is High-3 salary?
High-3 is your average annual basic salary during your highest-earning 3 consecutive years. Usually this is your final 3 years before retirement, but can be earlier years if you took a pay cut. Locality pay is INCLUDED. Overtime, bonuses, awards are NOT included. Step increases and within-grade pay raises do count.
When can I retire under FERS?
Minimum Retirement Age (MRA) varies by birth year: 55 if born before 1948, gradually increasing to 57 for those born in 1970+. To retire with full immediate annuity: MRA + 30 years service, OR age 60 + 20 years, OR age 62 + 5 years. MRA + 10 years: reduced annuity (5% reduction per year under 62).
What is the FERS Supplement?
FERS Annuity Supplement is a benefit for federal retirees who retire before age 62 with eligibility. It approximates the Social Security benefit you'd receive at age 62, based on your federal civilian service. Stops at age 62 when Social Security kicks in. Subject to an earnings test if you work elsewhere, earn over $22K (2024) and supplement is reduced.
How does TSP fit with FERS?
TSP is the third leg of FERS retirement. The government automatically contributes 1% of your salary regardless of your contribution. They match 100% of your first 3% and 50% of next 2%, so contributing 5% gets you a 5% match (total 10% going into TSP). Maximum federal contributions in 2026: $24,500 personal + $8,000 catch-up (age 50+) = up to $32,500.
Is FERS pension taxable?
Yes, most FERS pension income is taxable as ordinary federal income tax. A small portion may be tax-free (the part representing your own contributions to FERS, which were after-tax). State tax: some states (like Pennsylvania, Illinois, Mississippi) don't tax FERS pension. Most others do, at their normal income tax rates.