Q. I am a FERS employee who is 58 1/2 years old with 27 years of service. Can I retire now and defer my retirement annuity to age 60 without a penalty?
A: You can retire now and, because you have at least 20 years of service, postpone the receipt of your annuity until you reach age 60. That way you can avoid the 5 percent per year age reduction penalty.
