FERS MRA+10 Early Retirement Calculator

Federal employees who leave service at their Minimum Retirement Age (MRA) with 10–29 years of FERS service face a binary choice: start a permanently reduced annuity immediately, or postpone it until 62 (or 60 with 20+ years) to receive the full rate. This calculator models both options — showing the penalty, monthly income, and the exact break-even age where postponing first outpays the early start.

Who this is for: FERS employees planning to separate at their MRA (age 56–57 for most workers born after 1952) with between 10 and 29 years of creditable service. If you have 30+ years at MRA, or 20+ years at age 60, you qualify for an immediate unreduced annuity — no penalty applies and this calculator is not needed.

Your retirement inputs

FERS Minimum Retirement Age by birth year

Your MRA is set by statute (5 U.S.C. § 8412) and depends on your year of birth. Workers born in 1953 or later have an MRA between 56 and 57.¹

Year of birth	Minimum Retirement Age	Current age in 2026
Before 1948	55	79+
1948	55 and 2 months	78
1949	55 and 4 months	77
1950	55 and 6 months	76
1951	55 and 8 months	75
1952	55 and 10 months	74
1953–1964	56	62–73
1965	56 and 2 months	61
1966	56 and 4 months	60
1967	56 and 6 months	59
1968	56 and 8 months	58
1969	56 and 10 months	57
1970 and after	57	56 or younger

How the 5% per year penalty works

Under the MRA+10 provision, OPM reduces your FERS annuity by 5/12 of 1% for each full month you are under age 62 at the time payments begin — which equals 5% for each full year under 62.²

Worked example — Retire at 57 with 22 years of FERS service and a high-3 of $90,000:

Unreduced annuity: 1.0% × $90,000 × 22 years = $19,800/year ($1,650/month)
Years under age 62: 5 years → 25% permanent reduction
Immediate annuity: $19,800 × 75% = $14,850/year ($1,238/month)
Monthly cost of taking it early: $412/month, permanently, for life

The reduction does not disappear when you turn 62. It is baked into your base annuity for the rest of your life — and into the survivor benefit base if you elected coverage for your spouse.

The postponed retirement escape hatch. If you separate at MRA but don't apply for your annuity until age 62, OPM computes your benefit with zero reduction. This is called a "postponed retirement" — you receive no annuity during the waiting period, but the eventual payment is the full unreduced amount. Importantly, FEHB health coverage can be suspended during the gap and reinstated when you start the annuity (if you had at least 5 consecutive years of FEHB before separating).³

Critical gotcha: the FERS Supplement is not available under MRA+10

This is the most significant hidden cost in MRA+10 planning. The FERS Special Retirement Supplement — a bridge payment that approximates the Social Security benefit you earned under FERS — is not payable to MRA+10 retirees, whether you take the immediate reduced annuity or the postponed annuity at 62.²

Under a standard "30/MRA" or "20/60" immediate retirement, OPM begins paying the supplement automatically. It runs from your retirement date to age 62. Under MRA+10, that supplement never exists.

For a federal employee with 20 years of service and an estimated Social Security benefit of $1,900/month at 62, the supplement would have been approximately:

(20 ÷ 40) × $1,900/month = $950/month — for as many as 5 years before 62
Total supplement foregone over 5 years: approximately $57,000

This foregone supplement is not reflected in the immediate vs. postponed break-even calculation above. It is a separate cost of the MRA+10 path compared to a standard full-eligibility retirement.

The 60/20 alternative — often the fastest break-even

If you have 20 or more years of FERS service and can wait until age 60 (rather than 62), you receive an immediate unreduced annuity with no penalty. For someone separating at 57 with 20+ years, this means waiting just 3 years instead of 5 — and the break-even vs. taking the reduced annuity immediately is typically in the late 60s, far sooner than the 77-ish break-even for waiting until 62.

The calculator above automatically shows this Option C when your service is 20+ years and your separation age is below 60.

Roth conversion opportunity during the waiting period

If you postpone your annuity to 62 or 60, the years between separation and annuity start are often low-income years — which creates a valuable Roth conversion window. With no pension income, your IRMAA-triggering provisional income may be minimal. Converting traditional IRA or TSP assets to Roth during this window at the 12% or 22% bracket can save tens of thousands in future RMD taxes. This is an important planning variable a fee-only FERS specialist will model alongside the annuity decision.

When to choose each option

Take the reduced annuity now if…

Your health suggests shorter-than-average longevity
You elected life-only (no spouse to protect) and the break-even is beyond your realistic horizon
You have no savings to bridge the waiting period
You have a high-return use for the cash (paying down a high-rate mortgage, funding a business)

Postpone (to 60 or 62) if…

You have savings, spousal income, or part-time earnings to bridge the gap
You have 20+ years and can reach 60 — waiting 3 years beats waiting 5 for the same full annuity
Your spouse is younger and will outlive you — the survivor benefit is computed on a permanently reduced base if you take Option A
You expect average or better longevity (typical break-even is mid-to-late 70s for Option B)
The low-income waiting period creates a Roth conversion opportunity worth more than the lost payments

VERA is different — no penalty, supplement available

Voluntary Early Retirement Authority (VERA) allows agencies to offer early retirement at age 50 with 20 years of service, or any age with 25 years. When a VERA is in effect, there is no reduction to the FERS annuity and the FERS Supplement is payable. VERA is agency-specific and not always available. If your agency has offered a VERA window, use the FERS Annuity Calculator (no penalty inputs needed) and confirm with OPM or your HR that the supplement is included.

Related tools & guides

FERS Annuity Calculator — Standard retirement: full survivor benefit comparison, FERS Supplement estimate, 1.0% vs. 1.1% multiplier analysis
FERS Supplement Earnings Test Calculator (2026) — If you qualify for the supplement, see how post-retirement earned income reduces it
FERS Retirement Planning Guide — Full decision framework: MRA eligibility, TSP rollover, diet-COLA, Social Security coordination
TSP to IRA Rollover Guide — The Rule of 55 you lose by rolling the TSP to an IRA; when to keep vs. roll
Leaving a Job With a Pension Before Retirement — Private-sector equivalent: three options when you leave with a vested pension before retirement age
Match with a FERS retirement specialist — Free match with a fee-only advisor who models MRA+10 vs. full eligibility vs. VERA with your actual numbers

Model your complete FERS early departure decision

The MRA+10 penalty, lost FERS Supplement, TSP rollover timing, FEHB health coverage gap, Roth conversion window, and Social Security claiming all interact. A fee-only FERS specialist has no incentive to push the TSP rollover (unlike wirehouse advisors who earn AUM fees on rolled money). Free match, no obligation.

Fee-only · No commissions · Free match · No obligation

Sources

OPM — FERS Retirement Eligibility — Minimum Retirement Age table by birth year; full vs. MRA+10 eligibility thresholds (30/MRA, 20/60, 5/62). Verified May 2026.
OPM FAQ — MRA+10 Annuity Under FERS — 5/12 of 1% per month penalty rate, no FERS Special Retirement Supplement for MRA+10, postponed retirement option. Verified May 2026.
FedWeek — The FERS Postponed Annuity Option — Postponed vs. deferred retirement distinction; FEHB suspension and reinstatement rules during the waiting period.
OPM — FERS Annuity Computation — 1.0%/1.1% multiplier rules; high-3 definition; creditable service calculation. Verified May 2026.

FERS retirement rules verified against OPM eligibility and computation pages, May 2026. The MRA+10 penalty rate (5/12 of 1% per month = 5% per year) and supplement ineligibility are statutory provisions under 5 U.S.C. § 8412 and have not been altered by OBBBA, SECURE 2.0, or the Social Security Fairness Act.