Early retirement and annuity


Q. If I retire at 58 with 20 years of service, what exactly do I lose? Should I wait at least until 60, or 62 or 65?

A. You would be retiring under the MRA+10 provision. As a result, your annuity would be reduced by 5 percent per year (5/12ths of 1 percent per year) that you were under age 62. You could reduce or eliminate that penalty by postponing the receipt of your annuity to a later date. If you did delay it and were covered by the FEHB and/or FEGLI program for the five consecutive years before you left, you could re-enroll when your annuity begins.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.


  1. Technically, you should refer to this as POSTPONING the annuity — not a deferred annuity. With a deferred annuity, you would be resigning and would NOT have the rights to re-enroll in FEHB and/or FEGLI. With a postponed annuity, you would actually retire and then still have the right to re-enroll for FEHB and FEGLI upon collection of the annuity. I think that’s what you were trying to get at anyway, but it’s important to use the word POSTPONE to avoid any confusion and not make the poster think they should go for a Deferred Annuity.

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