What income can you use in retirement under FERS?

By the OnPAR Federal Retirement Education editorial team · Last updated November 2, 2026

Related: FERS pension · FERS supplement · TSP withdrawal options · Social Security and FERS · FERS for Veterans

Most FERS retirees live on up to four income streams: the FERS pension (basic annuity), the FERS annuity supplement if you retire before 62 on an eligible retirement, TSP withdrawals, and Social Security. OPM describes the design simply: after 62 you generally get your FERS annuity, your TSP and your Social Security. Retire earlier, before you can get Social Security, and you may get the supplement instead [1].

1. The FERS pension (basic annuity)

This is the lifetime monthly payment from OPM. The basic formula is 1% of your high-3 average salary for each year of service. It rises to 1.1% if you're 62 or older when you separate and have at least 20 years of service [1][2]. OPM's own example: a $90,000 high-3 with 20 years at age 62 gives 1.1% × $90,000 × 20 = $19,800 a year, or $1,650 a month, before reductions such as a survivor annuity [1].

Some things shrink the check. If you retire under MRA+10, the annuity is cut by 5% for each year you're under 62, unless you postpone it [1]. If you're married, a full survivor annuity reduces your annuity by 10%, and a partial (25%) survivor annuity by 5% [1]. See our FERS pension guide and how the pension is calculated.

2. The FERS annuity supplement (bridge to 62)

The supplement is part of your FERS annuity, not a Social Security payment. It's meant to stand in for the Social Security you earned under FERS until you can claim it [1]. OPM figures it by estimating your full-career (40-year) Social Security benefit and scaling it by your FERS civilian years. OPM's example: a $1,000 estimate and 30 years of FERS service gives 30 ÷ 40 × $1,000 = $750 a month [1].

• Who gets it: people on an immediate voluntary retirement that isn't reduced for age. Early-out (VERA) and involuntary retirees get it too, but only once they reach their MRA. It is not paid on MRA+10, deferred or disability retirements [1].
• When it stops: at the end of the month you turn 62, or earlier if you become entitled to Social Security first [1].
• Earnings test: if you work after retiring, it's cut $1 for every $2 you earn above Social Security's exempt amount [1]. That amount is $24,480 for 2026 and $25,560 for 2027 [6]. Your FERS annuity itself doesn't count as earnings [1].

More detail is on our FERS supplement page.

3. TSP withdrawals

Your TSP is the flexible piece. After you leave federal service, the TSP rules let you take money as installment payments, single (partial) withdrawals, a life annuity, or a combination [4]. Things to know [3]:

• Taxes: the TSP withholds federal income tax from the taxable part of most payments and reports them on Form 1099-R. It doesn't withhold state tax, but your state may still tax the money.
• Required minimum distributions: once you've left federal service, they start at 73 if you were born before 1960, or 75 if you were born in 1960 or later. RMDs are figured on your traditional balance only. Roth money isn't subject to RMDs.
• Spouse's rights: a married FERS participant needs the spouse's notarized consent for a partial withdrawal. A spouse is also entitled to a joint life annuity on a full withdrawal of more than $3,500 unless they waive it.
• Traditional vs. Roth: you can choose to take a withdrawal from traditional money, Roth money, or both in proportion.

Compare the choices on our TSP withdrawal options page.

4. Social Security

FERS employees pay into Social Security and earn regular Social Security benefits. You can start them as early as 62, but they're reduced for each month before your full retirement age. Full retirement age is 67 for anyone born in 1960 or later. Claiming at 62 cuts the benefit by about 30% (a $1,000 benefit becomes $700) [5]. Waiting past full retirement age, up to 70, raises it [5]. If you claim before full retirement age and keep working, Social Security's own earnings test applies [6]. See Social Security and FERS and our article on Social Security's future.

How the four fit together

Sources: OPM [1], TSP [3], SSA [5].

The key timing problem is the gap at 62. The supplement stops then, but you may not want to claim Social Security at 62 because of the permanent reduction. Many retirees plan bigger TSP withdrawals for those years so they can let Social Security grow. That's a planning choice, not a rule, so test it with your own numbers.

Worked example (illustration only)

These are made-up numbers, not anyone's real benefit. Dana was born in 1969, so her MRA is 56 and 10 months [1], and her Social Security full retirement age is 67 [5]. She retires on an unreduced MRA+30 retirement at 57 with 30 years of FERS service and a $100,000 high-3. She's single and takes no survivor annuity.

• Pension: under 62, so the factor is 1%: 1% × $100,000 × 30 = $30,000 a year ($2,500 a month) [2].
• Supplement: suppose OPM's estimate of her full-career Social Security at 62 is $1,800. Then 30 ÷ 40 × $1,800 = $1,350 a month until 62, as long as she doesn't earn over the exempt amount [1][6].
• TSP: she sets up installments of, say, $1,000 a month [4].

Ages 57–61: $2,500 + $1,350 + $1,000 = $4,850 a month before taxes and health premiums.

At 62 the supplement ends [1]. Suppose her Social Security at full retirement age is $2,400. Claiming at 62 would pay about 70% of that, or $1,680 [5]. Waiting to 67 pays the full $2,400. If she waits, she could raise TSP installments to about $2,350 for those five years to keep income near $4,850 ($2,500 + $2,350). Then at 67 she'd drop back to $1,000 from the TSP once Social Security starts ($2,500 + $2,400 + $1,000 = $5,900). Whether that's wise depends on her TSP balance, health and taxes. This example leaves out COLAs, taxes and FEHB premiums.

Run your own version in the FERS Retirement Calculator.

Checklist

1. Get an official annuity estimate from your HR office, including the supplement.
2. Download your Social Security estimate at ssa.gov/myaccount.
3. Check your TSP balance and decide how to cover the gap from 62 to when you claim Social Security.
4. Veterans: check whether a military deposit would add pension years. See FERS for Veterans.

Run the numbers → open the FERS Retirement Calculator

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Official sources

1. OPM: Types of Retirement (eligibility, MRA, FERS annuity supplement)
2. OPM: FERS Computation
3. TSP: Taking money from your account (taxes, RMDs, spouses' rights)
4. eCFR: 5 CFR Part 1650, Subpart B (TSP post-employment withdrawals)
5. SSA: Starting your retirement benefits early (full retirement age and age-62 reduction)
6. SSA: Exempt amounts under the earnings test

Checked against the official sources above on November 2, 2026. Education only, not legal, tax or financial advice. Not affiliated with OPM, SSA, the TSP or any government agency.