Federal Retirement Calculator

Begin with the FERS Annuity section. Enter your "High-3 Average Salary," which is the average of your highest 36 consecutive months of basic pay. Next, input your total "Years of Service" you expect to have at retirement and your planned "Retirement Age." Your "Current Age" helps the calculator determine how many more years your TSP has to grow.

Move to the Thrift Savings Plan (TSP) section. Provide your "Current TSP Balance" from your account statement. Then, estimate the "Expected TSP Return" as an average annual percentage. A common long-term estimate is between 5% and 7%, depending on your fund allocation. Finally, set a "TSP Withdrawal Rate," which is the percentage you plan to withdraw each year in retirement. The 4% rule is a common starting point.

Next, complete the Social Security section. Enter your "Estimated Monthly SS Benefit" at your planned start age. You can get this estimate from your statement on the official Social Security Administration website. Then, enter the "SS Start Age" when you plan to begin receiving benefits. Use the best age to take Social Security calculator to explore this decision.

For a more detailed projection, open the Advanced Options. Here you can adjust your "Life Expectancy" for long-term planning, add your monthly "FEHB Monthly Premium" (health insurance), set an "Inflation Rate," and include the monthly "FERS Supplement" if you plan to retire before age 62 and are eligible.

Once all fields are complete, click the calculate button to see your detailed federal retirement income projection.

High-3 Average Salary

This is the foundation of your FERS annuity calculation. It represents the average of your highest 36 consecutive months of basic pay. It does not typically include overtime, bonuses, or awards. For most employees, this will be the average of their last three years of service. A higher High-3 salary directly results in a larger pension.

Years of Service

This is your total creditable service time under FERS. It includes your time as a FERS employee and may also include military service for which you've made a deposit. Each year of service increases the size of your FERS annuity.

Retirement Age & Current Age

Your retirement age determines when your FERS annuity and TSP income will begin. Your current age is used to calculate the number of years remaining until retirement, which is critical for projecting the growth of your Thrift Savings Plan (TSP) balance.

Current TSP Balance

This is the total amount you currently have saved in your TSP account across all funds (G, F, C, S, I, and L funds). This is the starting point for projecting your future TSP value at retirement.

Expected TSP Return & Withdrawal Rate

The Expected TSP Return is your estimated average annual investment growth before and during retirement. This is an assumption; past performance does not guarantee future results. Your return will depend on your allocation across the different TSP funds.

The TSP Withdrawal Rate is the percentage of your TSP balance you plan to withdraw each year for income. A lower rate (e.g., 3-4%) makes your money last longer, while a higher rate provides more income but increases the risk of depleting your account.

Estimated Monthly Social Security Benefit & Start Age

This is the monthly benefit you expect to receive from Social Security. You can find your personalized estimate on SSA.gov. The SS Start Age is when you elect to begin benefits, which can be as early as 62 or as late as 70. Delaying benefits results in a higher monthly payment. See our guide on when to take Social Security for more details.

Advanced Options

• Life Expectancy: A planning assumption for how long your retirement will last. A longer life expectancy requires your savings to last longer.
• FEHB Monthly Premium: The amount you'll pay for your Federal Employees Health Benefits premium in retirement. This is a key retirement expense.
• Inflation Rate: The assumed annual rate of inflation. This is used in more complex projections to adjust future costs. You can learn more about how inflation affects retirement savings.
• FERS Supplement: An additional payment for certain FERS employees who retire before age 62. It approximates the Social Security benefit earned during FERS service and stops at age 62.

This calculator models the "three-legged stool" of FERS retirement by calculating each of your three main income streams and then combining them into a comprehensive projection.

1. FERS Annuity Calculation: The calculator first determines your FERS pension. It uses the standard formula: your High-3 salary multiplied by your years of service, multiplied by a percentage factor. This factor is typically 1%, but it increases to 1.1% if you retire at age 62 or later with at least 20 years of service. This provides a stable, predictable income stream for life.

2. TSP Projection and Income: The calculator takes your current TSP balance and projects its growth until your planned retirement age using your "Expected TSP Return" assumption. This gives you an estimated TSP balance at retirement. From that balance, it calculates your initial annual retirement income using your specified "TSP Withdrawal Rate."

3. Social Security Benefit: The calculator takes your estimated monthly Social Security benefit and incorporates it into your total income starting at your selected "SS Start Age."

4. Year-by-Year Simulation: After calculating the initial income from each source, the tool runs a year-by-year simulation from your retirement age to your life expectancy. It shows how the FERS annuity provides a baseline, how Social Security kicks in, and how TSP withdrawals supplement your income. It also projects the decline of your TSP balance over time based on your withdrawals and continued investment growth.

The final results, including the score and charts, are based on this combined, year-by-year projection of your total federal retirement income.

The calculator uses several key formulas to estimate your federal retirement benefits.

FERS Annuity Formula

The FERS basic annuity is calculated with a straightforward formula. The multiplier changes based on your age and service.

FERS Multiplier = IF(Retirement Age >= 62 AND Years of Service >= 20, 1.1%, 1.0%)

FERS Annual Annuity = High-3 Average Salary x Years of Service x FERS Multiplier

TSP Projection Formulas

First, the calculator projects your TSP balance growth from today until retirement.

Years to Retirement = Retirement Age - Current Age

TSP at Retirement = Current TSP Balance x (1 + Expected TSP Return / 100) ^ Years to Retirement

Next, it calculates the annual income you can draw from your TSP based on your withdrawal rate.

TSP Annual Income = TSP at Retirement x (TSP Withdrawal Rate / 100)

Total Income Formula

Your total annual income in retirement is the sum of all three sources. Note that Social Security may not start in your first year of retirement.

Social Security Annual Benefit = Estimated Monthly SS Benefit x 12

Total Annual Income = FERS Annual Annuity + TSP Annual Income + Social Security Annual Benefit (when active)

The Federal Employees Retirement System (FERS) is designed as a portable and flexible system with three distinct components, often called the "three-legged stool." A stable retirement depends on the strength of all three legs.

1. FERS Basic Benefit (Annuity) This is a defined benefit plan, or a traditional pension. You and your agency contribute a small percentage of your pay to the FERS retirement fund. In return, you receive a guaranteed monthly payment for life after you retire. The amount is based on your salary and years of service, as calculated above. It is designed to be a stable foundation for your retirement income.

2. Thrift Savings Plan (TSP) This is a defined contribution plan, similar to a private-sector 401(k) plan. You contribute your own money (pre-tax or Roth), which your agency matches up to 5% of your basic pay. You control how your money is invested across various funds. The income you receive from the TSP in retirement depends on how much you contribute, your agency's match, and your investment performance over time.

3. Social Security As a FERS employee, you pay Social Security taxes and earn benefits just like private-sector workers. This provides a third stream of income based on your earnings history over your entire career. Your benefit is determined by a complex formula, but you can get a reliable estimate from the Social Security Administration. You can use our Social Security strategy calculator to explore claiming options.

A successful federal retirement involves maximizing all three components: working long enough for a solid pension, contributing consistently to the TSP to build a large nest egg, and making a smart decision about when to claim Social Security.

To receive an immediate, unreduced FERS annuity, you must meet one of the following age and service combinations:

• Age 62 with 5 years of service: This is the standard eligibility for a full, unreduced pension.
• Age 60 with 20 years of service: You can retire earlier if you have more service time.
• Minimum Retirement Age (MRA) with 30 years of service: Your MRA is based on your birth year (it's 57 for those born in 1970 or later). This is the earliest you can retire with a full, unreduced benefit.

There are also options for early retirement, but they may come with a benefit reduction. For example, you can retire at your MRA with at least 10 years of service, but your annuity will be reduced by 5% for each year you are under age 62.

Your TSP is arguably the most powerful wealth-building tool available to federal employees. Here’s how to make the most of it:

• Get the Full Match: Your agency automatically contributes 1% of your basic pay to your TSP. They will then match your contributions dollar-for-dollar on the first 3% you contribute, and 50 cents on the dollar for the next 2%. To get the full 5% total agency contribution, you must contribute at least 5% of your own pay. Not doing so is like leaving free money on the table.
• Strive to Max Contributions: The 2026 TSP contribution limit is $23,500. If you are age 50 or over, you can contribute an additional $7,500 as a catch-up contribution. While maxing out may not be possible for everyone, contributing as much as you can will dramatically increase your retirement security. Use the 401(k) contribution calculator to see how different contribution rates add up.
• Choose the Right Funds: The TSP offers several investment funds, from the risk-free G Fund to stock index funds like the C, S, and I Funds. The Lifecycle (L) Funds offer a pre-mixed portfolio that automatically becomes more conservative as you approach retirement. Your investment choice should align with your age, risk tolerance, and retirement timeline.

• Federal Retirement Score: This score gives you a quick assessment of your plan's strength, based on the percentage of your High-3 salary that your total retirement income replaces. A higher score indicates a stronger income replacement rate.
• Total Monthly/Annual Income: This is the headline number showing your combined estimated income from FERS, TSP, and Social Security once all three are being paid.
• FERS Annuity & TSP Income: These cards break down your total income into its core components, showing how much comes from your guaranteed pension versus your investment portfolio.
• Income Replacement: This percentage shows how your estimated retirement income compares to your working salary. Financial planners often recommend a target of 70% to 85% for a comfortable retirement.
• Retirement Income by Source Chart: This visual shows your income streams over time. You can see your base FERS and TSP income, and then the increase when Social Security benefits begin.
• TSP Balance Projection Chart: This chart shows how your TSP balance is expected to decline throughout retirement based on your withdrawal rate and assumed investment returns. A steep decline may indicate your withdrawal rate is too high.

If your projected income is lower than you'd like, consider these strategies:

1. Work Longer: Each additional year of service increases your High-3 salary and adds another year to the FERS annuity formula, boosting your pension. It also gives your TSP another year to grow.
2. Increase TSP Contributions: The most direct way to improve your outcome is to save more. Increase your TSP contribution percentage, especially if you are not yet getting the full 5% agency match.
3. Delay Social Security: Waiting to claim Social Security from 62 to 67, or even 70, can significantly increase your monthly benefit for life. This reduces the amount you need to withdraw from your TSP.
4. Review Your TSP Allocation: If you have a long time until retirement, a more growth-oriented allocation (e.g., C, S, and I funds) may lead to a larger balance than a conservative one (e.g., G and F funds).
5. Reduce Your TSP Withdrawal Rate: If your TSP is projected to run out too early, lowering your annual withdrawal rate can extend its lifespan. This may mean adjusting your retirement budget.

1. Missing the Full TSP Match: Failing to contribute at least 5% to your TSP means you are forfeiting part of the 5% agency matching contribution, which is a core part of your compensation.
2. Investing Too Conservatively: While the G Fund is safe from losses, its low returns may not outpace inflation over a long career, significantly reducing your potential TSP balance.
3. Ignoring FEHB Requirements: To keep your Federal Employees Health Benefits (FEHB) in retirement, you must be enrolled for the five years immediately preceding your retirement.
4. Misunderstanding the FERS Supplement: The supplement is not a permanent benefit; it ends at age 62. You must have a plan to cover the income gap when it stops.
5. Forgetting About Taxes: Your FERS annuity, traditional TSP withdrawals, and a portion of your Social Security benefits are generally subject to federal income tax. Factoring taxes into your plan is crucial. Explore tax-efficient withdrawal strategies to keep more of your money.