11 Important Work Milestones for Federal Employees

There’s no such thing as a “retirement magic number.” Whatever age you decide to retire is highly personalized and based on your own unique retirement goals. With federal employment, there are milestones that can unlock specific benefits, and the more you can reach, the better set up you’ll be to navigate your retirement decisions.

FERS Retirement Quick Reference

he table below summarizes the key retirement eligibility tiers for federal employees under the Federal Employees Retirement System (FERS), sourced from OPM.gov. Use it as a quick reference when reviewing the milestones below.

Work Anniversaries

5 Years on the Job

The current changes facing the federal workforce have highlighted probationary employees and the lack of job security they have relative to longer-tenured employees. For those new to the government, reaching the five-year mark is important—this milestone qualifies you for a pension one day. While it may not necessarily be a large pension, or an immediate one following retirement, reaching five years of civilian service and the age of 62 qualifies you for a pension under the current rules.

10 Years on the Job

Similarly, reaching your 10-year anniversary may qualify you for a form of retirement referred to as minimum retirement age (MRA) plus 10. MRA is a range of ages based on your birth year (between 55 and 57), but if your circumstances force you away from federal employment and you have these two qualifications, you should be eligible for an immediate retirement, which means income and access to health insurance.

20 Years on the Job

With all the current talk about Voluntary Early Retirement Authority (VERA), Voluntary Separation Incentive Payments (VSIPs), Discontinued Service Retirement (DSR), and Reduction in Force (RIF), federal employees are assessing if they are even eligible to participate in these different retirement programs—let alone if they want to. These programs can make you qualified to retire and receive a pension earlier—when you reach age 50 with 20 years on the job or at any age with 25 years on the job.

Age 60 with 20 Years on the Job

Federal employees who reach age 60 with at least 20 years of creditable service qualify for an immediate, unreduced FERS retirement. This is a distinct and often overlooked retirement tier — one that doesn’t require reaching your MRA or waiting until age 62. If you’re tracking your years of service and approaching this combination, it represents a meaningful planning decision point worth discussing with a financial advisor well in advance.

30 Years on the Job

For those fortunate few who have reached or are near the 30-year mark (which happens a lot more in federal employment than the private sector), this milestone allows you to achieve immediate retirement—which, again, means a pension and access to health insurance—upon reaching one’s MRA. This doesn’t necessarily mean the people choose to fully retire. They might go on to private sector work and achieve the famous “double dipping,” where you have two sources of income.

Ages

55

55 can feel early for a retirement age, but it’s the first age on the MRA chart (for those born before 1948). 55 is also important for another reason—if you reach this age while employed, and then separate, you can take withdrawals from your Thrift Savings Plan (TSP) without the 10% penalty. This provides an important source of bridge liquidity until fully retiring. For federal employees offered these VERAs who happen to be about age 53, they are weighing the advantages versus disadvantages of acting now versus a planned-out approach.

Minimum Retirement Age (MRA)

This is a provision within federal employment rules that gives you the option to retire at a specific age. This age is based on your birth year, and once you reach this age while employed and have met one of the tenures mentioned above, you have the option to retire. Knowing your specific MRA is important and being younger than MRA during this time makes for some difficult decisions.

59 ½

Reaching age 59 ½ unlocks IRS rules that open the door to withdrawals from qualified accounts like TSPs, 401(k)s, and IRAs without a 10% penalty. Withdrawals may still be taxed as income, but they won’t have the additional penalty. This might be relevant to your retirement timeline if you are trying to stay long enough to access your planned retirement funds.

62

Age 62 offers two important milestones. If you are 62 with five years of service, then you are eligible for this immediate retirement. You also become eligible for Social Security. Starting Social Security at the earlier age of 62 may not be best for your long-term financial plan, as it grows the longer you wait, but the option is there if needed.

Life Milestones

When the Kids Move Out

Many people use understandable thresholds to feel comfortable retiring or leaving their jobs. These are often related to an expense they see “coming off the books,” like children leaving the home and moving out on their own. This milestone occurs at different times for different people, but it’s something to keep in mind as you consider all your end of work options. If you haven’t already done so, it can be helpful to engage with a financial advisor to discuss cash flow planning and determine if this is a feasible option for you.

When You Pay off the House

For many households, if your money isn’t going toward your children, it’s going toward your house. Paying off a mortgage can feel like an opportune time to retire, as you’ll no longer have a large house payment each month. Perhaps you intend to move, and the proceeds of the home after paying off the mortgage will help you pay cash for the new one. Perhaps you can retire despite having a mortgage payment for the first few years of retirement. Or perhaps there is other liquidity you can use to pay off the remainder of the mortgage.

No matter your current situation, a financial or tax advisor can help you assess your options and plan for your future. You should also seek out clarification and details regarding these benefits with your human resources department.

Frequently Asked Questions About Federal Employee Retirement

1. How many years do I need to work to get a federal pension? 

The minimum to qualify for any FERS pension is five years of creditable civilian service. However, the age at which you can begin collecting that pension depends on how many years you’ve served. With five years and age 62, you qualify for an immediate unreduced benefit. More years of service unlock earlier retirement options, including retirement at your MRA with 30 years, or at age 60 with 20 years. 

2. What is the Minimum Retirement Age (MRA) for federal employees? 

MRA is the earliest age at which a FERS employee can retire with an immediate pension, and it varies by birth year. It ranges from age 55 (for those born before 1948) to age 57 (for those born in 1970 or later). You can look up your exact MRA on the OPM website or confirm it with your HR department. 

3. What is MRA+10, and what’s the catch? 

MRA+10 is a retirement option that lets you retire with at least 10 years of service once you reach your MRA. The catch is significant: your annuity is permanently reduced by 5% for every year you are under age 62 when your annuity begins. You can avoid this penalty by postponing the start of your benefit until age 62, but you will not have access to FEHB (federal health insurance) during that gap period. 

4. What happens to my health insurance when I retire from a federal job? 

Federal retirees who retire on an immediate annuity and have been enrolled in the Federal Employees Health Benefits (FEHB) program for at least five years before retirement can continue their FEHB coverage into retirement. If you retire under MRA+10 and postpone your annuity to avoid the reduction, you lose FEHB coverage during the postponement period and cannot re-enroll until your annuity begins. 

5. When can a federal employee retire with full, unreduced benefits? 

There are three primary paths to an immediate, unreduced FERS retirement: (1) age 62 with at least 5 years of service, (2) age 60 with at least 20 years of service, or (3) your MRA with at least 30 years of service. Early retirement programs like VERA may also allow retirement at age 50 with 20 years, or at any age with 25 years, though eligibility depends on whether your agency offers those programs. 

6. Can I withdraw from my TSP before retirement without a penalty? 

Yes, in certain circumstances. If you separate from federal service in the calendar year you turn 55 or later, you can take TSP withdrawals without the standard 10% early withdrawal penalty. Additionally, once you reach age 59½, IRS rules allow penalty-free withdrawals from TSPs, 401(k)s, and IRAs regardless of your employment status, though withdrawals will still be taxed as ordinary income.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

2026-14357