Federal Employee Retirement Optimizer

What you’ll get from the results

After you click Calculate Retirement Benefits, the results panel shows:

• Estimated annual FERS pension at your target retirement age (plus a monthly estimate).
• Projected TSP balance at retirement based on contributions, match, and assumed return.
• Estimated first-year TSP withdrawal using a 4% rule-of-thumb.
• Combined annual income (FERS + 4% TSP withdrawal) and a simple lifetime comparison based on your life expectancy.

This is an educational estimator. It does not model taxes, FEHB premiums, survivor elections, early retirement reductions, SRS, or Social Security.

Key assumptions (read before using)

• High-3 approximation: The tool estimates High-3 from your current salary and a short growth assumption (selected in the High-3 method dropdown). Your real High-3 depends on your actual pay history and basic pay rules.
• FERS multiplier: Uses 1.0% for most cases, and 1.1% if you retire at age 62+ with 20+ years of service at retirement.
• COLA vs inflation: The calculator applies a simplified adjustment using the difference between your FERS COLA assumption and general inflation. Real COLA rules can be more complex.
• TSP projection: Contributions are treated as annual amounts, and the employer match is estimated as a percentage of salary each year.
• 4% rule: The 4% withdrawal estimate is a planning heuristic, not a guarantee.

Formulas used (simplified)

FERS basic annuity (annual): Estimated annual pension equals high three average salary times multiplier times years of service.

TSP first-year withdrawal (rule-of-thumb):

Worked example (realistic numbers)

Suppose you are 45 with 15 years of service and a current salary of $85,000. You plan to retire at 62 (17 years from now). If your estimated High-3 is about $90,000 and you have 32 years of service at retirement, then:

• If you qualify for the 1.1% multiplier (age 62+ and 20+ years), the pension estimate is roughly: 0.011 × 90,000 × 32 ≈ $31,680/year (about $2,640/month before any deductions).
• If your projected TSP balance at retirement is $600,000, the 4% rule estimate is about $24,000/year.
• Combined first-year income estimate: about $55,680/year.

Use this example as a quick sanity check: if your inputs are in the same ballpark, your results should be in a similar range.

Tips for choosing inputs

• Salary growth: Use a long-run average you can defend (step increases and promotions are not guaranteed).
• Employer match: Many employees receive up to 5% matching when contributing enough; enter your expected match rate.
• Investment return: Consider running a conservative and an optimistic scenario (e.g., 4% and 7%) to see sensitivity.
• Life expectancy: This affects only the “lifetime total” comparison; it’s not a promise of benefits.

FAQ

What is “High-3” for FERS?

Your High-3 is generally the highest average basic pay over any 3 consecutive years of creditable service. This calculator estimates it from your current salary and a growth assumption.

When does the 1.1% FERS multiplier apply?

Commonly, the enhanced multiplier applies if you retire at age 62 or later with at least 20 years of creditable service. Otherwise, 1.0% is used.

Does this include the FERS Special Retirement Supplement (SRS)?

No. If SRS applies to you, you’ll need to estimate it separately and add it to your income comparison.

Is the 4% TSP withdrawal amount guaranteed?

No. It’s a rule-of-thumb for long-term planning. Your sustainable withdrawal rate may be higher or lower depending on retirement length, asset mix, and market conditions.

Limitations and what this tool does not model

This calculator is intentionally simplified so you can compare scenarios quickly. It does not include: taxes, FEHB/FEGLI premiums, survivor benefit reductions, early retirement reductions, unused sick leave credit, special category retirement rules (LEO/FF/ATC), Social Security, SRS, or detailed COLA rules. Confirm decisions with OPM guidance and your agency’s benefits office.