Pension & TSP income
Will my money last?
Your retirement income comes from up to four places: your FERS or CSRS pension, the FERS supplement, your TSP and Social Security. Here's how each one works, and where the gaps usually hide.
What you need to know
The short answer
Your FERS pension
Generally 1% of your high-3 average salary for each year of service. Retire at 62 or later with at least 20 years and it rises to 1.1%. CSRS uses a higher formula, up to 80% of your high-3.
The FERS supplement stops at 62
If you retire on an immediate, unreduced annuity before 62, a supplement roughly approximates the Social Security you earned while a federal employee. It ends at 62, and an earnings test can reduce it if you work.
Your TSP is yours to manage
You choose how to draw it down: installments, partial withdrawals, a TSP annuity, or a mix. Required minimum distributions start at 73, or 75 if you were born in 1960 or later.
COLAs work differently under FERS
Most FERS retirees don't receive cost-of-living adjustments on their pension until age 62, and FERS COLAs can be smaller than inflation. CSRS COLAs start sooner and track inflation more closely.
Avoid these
Mistakes we see most
Counting on the supplement after 62
Your income can drop the month you turn 62. Plan for it now.
Forgetting the survivor reduction
A full survivor annuity under FERS reduces your pension by 10%. Your estimate should include it.
Using gross instead of net
Federal and state taxes, FEHB and FEGLI premiums come out of your pension. Plan from the net number.
Drawing the TSP too fast early on
Large early withdrawals can leave you short in your 80s, when health costs tend to rise.
Go deeper
Most-read guides on this topic
Plain-English articles from our Learning Center.
See all guides on this topicEvery federal career is different
A free Gap Report shows exactly what you'll receive, built from your own records, and where the gaps are. Ready 24–48 hours after a short call with Joe.
Educational information only, based on rules in effect as of October 2026. Benefit rules change. Confirm details with OPM, your agency or the TSP before making decisions.