The FERS Supplement is a payment some federal retirees receive to help bridge the income gap between retirement and Social Security eligibility at 62. It's designed to approximate the Social Security benefit a retiree would be eligible for at that age, and eligibility depends on the type of retirement taken and years of service. The supplement stops at 62 regardless of when Social Security is actually claimed, and it can be reduced if outside earnings go above a certain amount.
Video Transcript
Read the full transcript128 words
The FERS supplement is a payment that some federal retirees receive to help bridge that income gap between when they retire and when they become eligible for Social Security at age 62. It's designed to approximate the Social Security benefit you'd be eligible for at 62, so your income doesn't drop off sharply during those early retirement years.
Not everyone qualifies. Eligibility depends on the type of retirement you took and your years of service. The supplement stops at 62, whether you start Social Security at that point or not, and it can be reduced if you earn over a certain amount from other work.
Knowing whether you qualify and what you'd actually receive can have a meaningful impact on how you plan your income in the years leading up to 62.
Ready to review your plan?
These videos cover the general rules. Your numbers are specific to you and need guidance tailored to your situation and goals. Schedule a call with an advisor and walk through your plan.
Schedule Your CallThe content in this library is provided for educational and informational purposes only and does not constitute investment, tax or legal advice, or a recommendation to buy, sell or hold any security or to pursue any particular strategy. It does not take into account your individual objectives, financial situation or needs. Investing involves risk, including the possible loss of principal. Rules governing federal benefits, the Thrift Savings Plan, Social Security and taxation are subject to change, and information presented may not reflect the most current guidance. Consult a qualified professional regarding your own circumstances before acting on any information presented here.