Thinking about retiring at 57 under FERS? Learn how an MRA + 30 retirement works for federal employees and how to tell if your pension, FERS supplement, and TSP can support it.
If you’re a federal employee in your 50s with 30 years of service, your minimum retirement age (MRA) may be your first chance at an immediate, unreduced retirement.
In this video, John Mason, CFP®, walks through how to calculate your FERS pension, estimate your FERS annuity supplement, and figure out how much income your TSP may provide using a 4% withdrawal rate.
John also shares the modified current income approach he has used with clients for years. You start with your current salary and subtract the costs that go away in retirement, like TSP contributions, FERS contributions, Social Security and Medicare payroll taxes, and sometimes a mortgage or college costs. The result is the income you actually need to replace.
When you compare that number to your FERS pension, supplement, and TSP income, you may find your retirement income is close to what you live on today, and in some cases higher.
We also cover the tradeoffs of retiring at 57, including no FERS cost of living adjustment until age 62, an annuity supplement that doesn’t adjust for inflation, and the non-financial side of leaving work. Finally, John explains why you should factor in the cost of full survivor benefits when you run your numbers, and why many federal employees can afford that protection more easily than they think.
This video focuses on regular FERS employees. It does not cover FERS special category employees, law enforcement officers, VERA, or deferred resignation offers.
Timestamps
0:00 Can you retire at 57?
1:00 How to calculate your FERS pension
1:40 Why age 57 retirement is possible for federal employees
2:55 The modified current income approach
4:12 The three-legged stool of FERS retirement
4:56 Estimating your FERS annuity supplement
5:51 Estimating TSP income with a 4% withdrawal rate
6:38 Comparing your retirement income to your current income
7:15 The downsides of retiring at 57
8:18 The upsides of retiring early
8:59 Accounting for survivor benefits
9:41 Can every federal employee retire at 57?
Resources
Schedule an Intro Call: https://www.masonllc.net/get-started
Listen to the Federal Employee Financial Planning Podcast: / @fedemployeefinancialplanning
Sign up for our newsletter: https://www.masonllc.net
About Mason
Mason is an independent, fee-only financial planning firm specializing in federal employee benefits and retirement planning. Our team of CFP® professionals, CPAs, and EAs helps federal employees understand their FERS, CSRS, TSP, and FEHB benefits so they can make confident retirement decisions. Our philosophy is simple: outsource the thinking, not the decision making.
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Website: https://www.masonllc.net
Disclaimer
Investment advisory services offered through Mason & Associates, LLC. The content of this video is for general educational and informational purposes only and should not be considered specific investment, financial planning, tax planning, legal, or other professional advice. The examples in this video are hypothetical and for illustration only. Every situation is different, so please consult a qualified financial professional regarding your specific circumstances.
