Bedrock Investment Advisors understands your benefits and can help you with your goals.

Retiring Under FERS at 57 Sounds Great—But the Supplement’s Not What You Expect

Missy E
November 14, 2025

Key Takeaways

Retiring at 57 under FERS can be attractive, but the Special Retirement Supplement (SRS) might not fully bridge the gap to Social Security.
The supplement ends at 62 regardless of when you claim Social Security, and working post-retirement can significantly reduce it.

Why Age 57 Appeals to FERS Employees

For many government employees under the Federal Employees Retirement System (FERS), reaching age 57 marks a major milestone: eligibility for full, unreduced retirement benefits under the Minimum Retirement Age plus 30 years of service (MRA+30) rule. This early retirement option offers what looks like a smooth on-ramp to retirement.

At first glance, retiring at 57 can feel like you’ve cracked the code. You get your FERS basic annuity, you can start drawing from your Thrift Savings Plan (TSP) penalty-free, and you qualify for the FERS Special Retirement Supplement—a temporary payment meant to substitute for Social Security until age 62.

But the reality of how this supplement works, and when it doesn’t, often catches retirees off guard.

What the Special Retirement Supplement Actually Covers

The Special Retirement Supplement (SRS) is not a bonus. It’s a bridge—a temporary replacement for the Social Security benefit you would be entitled to if you were 62. Here’s how it works:

It approximates the Social Security benefit earned through your federal service only. Any non-federal work isn’t considered.
It starts when you retire with immediate eligibility (such as MRA+30 or age 60 with 20 years of service).
It ends at age 62—no exceptions.

This supplement is calculated as if you were eligible for Social Security at 62 and then prorated based on your federal service. For example, if you worked 30 years in federal service and your projected full Social Security benefit at 62 is $1,500, your supplement may be roughly 75% of that, or $1,125 per month. But the real number depends on your earnings record and other factors.

The Countdown Clock to Age 62

The SRS automatically stops the month you turn 62, whether or not you decide to claim Social Security. This abrupt end can create a sudden income gap for those who aren’t ready or eligible to claim Social Security immediately at 62.

It’s especially critical for those who expected to delay Social Security to age 67 or 70 to increase their benefits. The supplement does not support that delay. At 62, it disappears, and you’ll either need to claim Social Security early—locking in a permanently reduced benefit—or find other income sources.

Why the Supplement Might Be Lower Than You Hoped

While the FERS supplement is designed to fill the gap until age 62, it often falls short of expectations because:

It doesn’t reflect your full Social Security estimate. Only your federal service counts.
It excludes post-retirement earnings. If you worked in the private sector before your federal career or took side jobs, those earnings won’t increase your supplement.
It’s not adjusted annually like Social Security. The supplement does not include a Cost-of-Living Adjustment (COLA), meaning its value diminishes over time.

The Earnings Test That Can Shrink Your Supplement

The supplement is subject to the Social Security earnings test. If you continue to work after retiring and your income exceeds a certain threshold—$23,480 in 2025—your supplement is reduced.

For every $2 you earn above this threshold, $1 is deducted from your supplement. That means if you earn significantly more, your supplement could be reduced to zero.

This rule surprises many who planned on part-time work or consulting in retirement. You may be able to keep your annuity, but your supplement could vanish.

You Can’t Get the Supplement if You Use MRA+10

If you leave service at your Minimum Retirement Age (MRA) with at least 10 but fewer than 30 years of service and take an immediate annuity under the MRA+10 provision, you will not receive the Special Retirement Supplement.

This makes a major difference in retirement planning. You may be eligible for an annuity, but there will be no bridge to Social Security. You’ll either need to rely on TSP withdrawals or other savings, or take the Social Security reduction at 62.

Planning Around the Supplement’s Expiration

Knowing the supplement ends at 62 is only helpful if you prepare for it. You’ll want to:

Recalculate your retirement budget for the drop in income at 62.
Decide whether to claim Social Security early or delay and fill the gap another way.
Consider using your TSP or other investments to bridge the years between 62 and your full retirement age.
Speak to a financial professional about tax-efficient withdrawal strategies.

The risk isn’t just reduced income—it’s making rushed or uninformed decisions about Social Security that reduce your lifetime benefits.

Why This All Matters in 2025

In 2025, the maximum Social Security earnings limit for early retirees is $23,480, and the average FERS annuity remains around $1,810 per month. As inflation pressures persist and COLAs adjust benefits inconsistently, any missing or reduced income source—like the supplement—can quickly shift your retirement math.

At a time when Medicare Part B premiums are $185 and healthcare costs are rising, even a temporary shortfall matters. Many FERS retirees are re-evaluating their income streams as the economic environment demands more resilience.

How to Make the Most of the FERS Supplement

To use the supplement effectively:

Retire at the right time. The supplement only applies to those who retire under eligible provisions like MRA+30 or age 60 with 20 years.
Avoid exceeding earnings limits. If you plan to work after retirement, keep earnings below the annual limit or expect a reduced supplement.
Budget for its end. Treat age 62 as a mandatory review point for your retirement plan.
Delay Social Security strategically. If you want to wait past 62 to claim Social Security, your TSP and other savings must be positioned to cover the gap.

Talk to a Professional Before You Rely on the Supplement

While the FERS Special Retirement Supplement sounds like a built-in safety net, its short duration and limits can catch retirees off guard. Don’t rely on it as a full Social Security substitute. Instead, build a flexible retirement plan that can adapt to income changes at key ages—especially 62.

If you’re planning to retire at 57, or are already retired and unsure how the supplement fits into your broader income strategy, now is the time to review your numbers. A licensed professional listed on this website can help you align your FERS benefits, TSP, and Social Security timeline into a retirement plan that won’t leave you short.