Why Federal Employees Retire at Age 57
There are a few retirement ages that seem to come up over and over again in federal planning conversations.
Age 57.
Age 60.
Age 62.
All of them matter. But age 57 gets a disproportionate amount of attention. And there are three very specific reasons why.
Key Takeaways
Age 57 is the Minimum Retirement Age for many federal employees
Retiring at your MRA can help preserve key benefits like FEHB
The Rule of 55 allows penalty-free access to TSP for many who separate at 57
Minimum Can Feel Like Maximum
Why do so many federal employees aim for age 57?
For many, 57 is their Minimum Retirement Age, often called MRA.
If you were born in 1970 or later, your MRA is 57. If you were born earlier, your MRA falls somewhere between age 55 and 56 and 10 months, depending on your birth year.
Your MRA matters because it is one of the key gates to retirement eligibility under FERS.
If you leave federal service before reaching your MRA, keeping benefits like FEHB becomes very difficult. In most cases, you need an immediate retirement and at least five years of FEHB enrollment to carry health insurance into retirement.
For employees who want to leave federal service as early as possible while still keeping important benefits, retiring at MRA often feels like the earliest workable option.on.
Not Everyone Gets Full Benefits at 57
Reaching your MRA does not automatically mean you qualify for a full, unreduced FERS retirement.
To retire with an unreduced pension, you generally need to meet one of the following combinations:
Your MRA with at least 30 years of service
Age 60 with at least 20 years of service
Age 62 with at least 5 years of service
If your goal is a full retirement right at 57, that usually means 30 years of service.
If you have at least 10 years of service at your MRA, you may still be eligible for what is known as an MRA+10 retirement. This allows you to retire, receive a pension, and potentially keep FEHB coverage, assuming you meet the standard five-year participation rule.
The tradeoff is that your pension is reduced for retiring early unless you choose to postpone the start of your annuity.
Many people use an MRA+10 retirement with a postponed pension as a bridge. They leave federal service, work elsewhere for several years, and then turn their pension and FEHB back on later. Timing matters here. A postponed retirement is different from a deferred one, and that distinction can affect whether FEHB can be reinstated.
These rules apply to traditional FERS employees. CSRS employees and special provision employees like law enforcement officers, firefighters, and air traffic controllers operate under different frameworks.
Some Roles Do Not Have a Choice
Another reason age 57 shows up so often is that some federal employees are required to retire by then.
If this applies to you, you likely already know.
Mandatory retirement rules typically affect physically demanding or high-stress roles, such as law enforcement officers and firefighters. These employees are often required to retire at 57 once they have completed the required years of covered service.
Air traffic controllers are usually subject to mandatory retirement one year earlier at age 56, assuming they have met their service requirements. In some cases, separation can be delayed until the required service time is completed.
TSP Access Is a Big Piece of the Puzzle
Many people believe they must wait until age 59½ to access their TSP without penalty.
That is not always true.
If you separate from federal service in the calendar year you turn age 55 or later, you may access your TSP without the standard 10 percent early withdrawal penalty. This applies regardless of whether you retire under a full retirement provision.
This rule is commonly referred to as the Rule of 55, and it is one of the biggest drivers behind retirements around age 57.
If you separate before the year you turn 55, this exception does not apply. At that point, you are generally subject to the 59½ rule unless you use another strategy, such as substantially equal periodic payments.
Taxes still apply to traditional TSP withdrawals. The Rule of 55 only removes the early withdrawal penalty.
Picking the Right Age for You
Should you retire at 57? It can make sense for some people. It does not make sense for everyone.
Some federal employees are not financially ready to stop working at that age. Others enjoy their work and prefer to stay longer.
The right retirement age is less about hitting a number and more about whether everything lines up. Cash flow. Benefits. Taxes. And how you actually want to spend your time.
Age 57 is popular for a reason. That does not mean it is automatically the right answer.
