What It Means, What It Allows, and What to Watch Out For
If you’re a federal employee under the FERS system, one of the most important milestones in your retirement eligibility is reaching your Minimum Retirement Age (MRA). But MRA doesn’t automatically mean you’re ready to walk out the door with full benefits — far from it.
At Independence Benefits, we help federal employees understand the real meaning behind MRA — and how to use it wisely as part of a broader retirement strategy.
Here’s what you need to know.
What Is the FERS Minimum Retirement Age?
What Retirement Options Open Up at MRA?
There are three primary options available when you reach MRA, depending on your years of federal service:
1. Immediate Retirement at MRA with 30+ Years of Service
- Eligible for an immediate, unreduced annuity
- Also eligible for the FERS Special Retirement Supplement until age 62
- This is considered full retirement under FERS
2. Retirement at Age 60 with 20+ Years of Service
- Another path to unreduced retirement
- You don’t need to reach MRA if you’re 60 with 20+ years
3. MRA +10 Retirement (Early Retirement Option)
This is where many federal employees get confused — and where mistakes can be costly.
What Is MRA +10 Retirement?
MRA +10 allows you to retire at MRA with at least 10 years of service, even if you don’t meet the age or service thresholds for full retirement.
But there’s a catch:
You’ll receive a permanent reduction in your pension if you retire under this rule.
The Penalty:
Your FERS annuity is reduced by 5% for every year you are under age 62.
- If you retire at age 57 with 15 years of service, you’re 5 years under 62
- That’s a 25% permanent reduction in your pension
This can be a viable option for some, especially those planning to work elsewhere, but it should be used with full awareness of the impact.
Optional Deferral:
You can postpone your annuity to reduce or eliminate the penalty.
For example:
- Retire at 57 under MRA+10
- Postpone your annuity until age 60 (if you have 20 years) or 62 (if less)
- Your health and life insurance eligibility will depend on how you postpone
We help clients model this decision, factoring in income gaps, insurance options, and long-term projections.
The FERS Special Retirement Supplement and MRA
The FERS Special Retirement Supplement is a temporary income bridge between your retirement and eligibility for Social Security at age 62.
But you only qualify for it if:
- You retire with an immediate, unreduced annuity
- That typically means retiring at MRA with 30+ years, or age 60 with 20+ years
If you retire under MRA+10 or with penalties, you will not receive the FERS Supplement.
How We Help You Navigate the MRA Decision
MRA can be an opportunity — or a trap — depending on how it’s used. We help federal employees:
- Calculate their actual MRA and eligibility date
- Run side-by-side comparisons of MRA+10 vs full retirement
- Plan TSP withdrawals or income bridges to supplement early exits
- Preserve FEHB and FEGLI eligibility based on annuity choices
- Optimize timing for those near age 60 to avoid permanent penalties
The difference between a rushed retirement and a planned one can mean hundreds of dollars a month for life — and thousands over time.
Final Thoughts
Your MRA is a starting point — not the finish line.
Knowing when you can retire is helpful. Knowing how and whether you should is where the real strategy lies.
At Independence Benefits, we help federal employees make sense of these options and retire on their terms — with clarity, confidence, and no surprises.
Schedule Your Complimentary Retirement Session Today
We’ll help you break down your MRA eligibility, pension estimate, TSP strategy, insurance elections, and walk you through every key decision.
📍 https://retire.independencebenefits.com/consultation
📞 Or call 256-443-9964
