How to Calculate FERS Retirement Annuity with a Few Simple Examples

Published on December 9, 2023

Figuring out your FERS retirement annuity doesn't have to be a headache.

We'll break it down for you with a few simple and straight examples.

The Basic FERS Annuity Formula

Here's the deal:

  • 1% of your high-3 average salary
  • Multiplied by your years of service

But wait, there's a twist.

If you're 62 or older with 20+ years of service, that 1% becomes 1.1%.

Sounds small, but it adds up.

What's This High-3 Average Salary?

It's your highest average basic pay over any 3 consecutive years.

Usually, it's your last 3 years, but not always.

Pro tip: Check your entire career. You might find a higher 3-year average earlier on.

Let's Crunch Some Numbers

Time for the fun part. We'll look at three scenarios.

Example 1: Retiring at 57

  • Age: 57
  • Years of service: 30
  • High-3 average salary: $80,000

Calculation: $80,000 x 1% x 30 = $24,000 per year

Monthly annuity: $2,000

Example 2: Retiring at 62

  • Age: 62
  • Years of service: 25
  • High-3 average salary: $90,000

Calculation: $90,000 x 1.1% x 25 = $24,750 per year

Monthly annuity: $2,062.50

Example 3: Retiring at 70

  • Age: 70
  • Years of service: 35
  • High-3 average salary: $100,000

Calculation: $100,000 x 1.1% x 35 = $38,500 per year

Monthly annuity: $3,208.33

Don't Forget These Factors

Your actual annuity might be different. Why?

  • Survivor benefits reduce your annuity
  • Part-time service affects your total
  • Unused sick leave can bump up your years of service

It's not just about the base calculation.

FAQs: Your Burning Questions

Q: Does overtime count in my high-3?
A: Nope, just your basic pay.

Q: Can I get estimates for different retirement dates?
A: Absolutely. Use our FERS Annuity Calculator to play with different scenarios.

Q: What if I have military service?
A: It can count, but you might need to make a deposit. Check out our military service credit article.

The Bottom Line

Calculating your FERS annuity is just step one.

It's part of your bigger retirement picture.

Don't stop here. Look at your TSP, Social Security, and other savings too.

Want a deeper dive? Our FERS retirement guides got you covered.

Remember, knowledge is power. The more you know, the better you can plan.

Your FERS annuity is just the beginning of your retirement story. Make it a good one.

Related Resources

FERS Immediate Retirement: Complete Guide and Eligibility Requirements

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FERS Retirement Benefits Explained: Complete Guide

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FERS Retirement Date Calculator: Optimal Timing Guide

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