For many federal employees, retirement doesn’t happen at the same time that Social Security begins. You might be ready to retire at 57 or 60 — long before you can turn on your Social Security benefit at 62 or later. That gap in income can leave some people wondering: how do I bridge it?
The good news is that there are several strategies federal employees can use to cover the income gap between their FERS pension and Social Security. The right approach will depend on your personal goals, your savings, and your comfort with working or drawing from investments.
Let’s break down the key ways to bridge this gap so your retirement income stays consistent and predictable.
Understanding the “Retirement Gap”
If you’re under the Federal Employees Retirement System (FERS), you already know you’ll receive a pension once you retire, based on your salary and years of service.
That pension provides a reliable foundation of income, but for those retiring before age 62, there’s usually a period of time when Social Security hasn’t started yet.
This gap can last anywhere from a few months to several years — and how you handle it can have a big impact on your long-term financial success.
Here’s a simple example:
Example: Jane retires at age 57 after 30 years of service. Her FERS pension begins right away, but Social Security isn’t available until 62. That’s a 5-year gap she needs to plan for.
So what are her options?
Option 1: The FERS Supplement
The FERS Supplement — sometimes called the Special Retirement Supplement — is one way to help bridge the gap.
This benefit is paid to certain retirees who leave federal service before age 62 and meet specific service requirements. It’s meant to replace a portion of the Social Security benefit you’ve earned while working as a federal employee and continues until you reach age 62.
To qualify, you must retire under an immediate retirement, meaning you have:
- At least 30 years of service and have reached your Minimum Retirement Age (MRA), or
- At least 20 years of service and age 60 or older
If you qualify, the supplement can provide a few extra years of steady income until you’re eligible for Social Security.
But keep in mind — it stops at 62 no matter what, and not everyone qualifies. So while the FERS Supplement can be helpful, it’s not the only option.
Option 2: Drawing More From Investments (Like TSP)
If you don’t qualify for the supplement, or if it doesn’t fully cover your expenses, you can use your Thrift Savings Plan (TSP) or other investment accounts to fill the gap.
The TSP is a powerful tool because it allows you to smooth out your income needs over time. Many retirees will intentionally withdraw a little more during those early “gap years” and then reduce withdrawals later when Social Security begins.
For example, if you need $80,000 per year in total income, but your FERS pension only provides $50,000, you could withdraw $30,000 per year from your TSP between ages 57 and 62.
Once Social Security begins, you can drop those TSP withdrawals down to maybe $10,000 or $15,000 a year — preserving your savings for the long haul.
This approach can work well if:
- You’ve built a healthy TSP balance, and
- You understand how withdrawals will impact your long-term portfolio.
A financial planner can help you model this out so you know exactly how much you can take without jeopardizing your future income.
Option 3: Working Part-Time
For some retirees, working part-time can be a great way to bridge the gap — especially if you enjoy staying active and social.
Even a modest part-time income can significantly reduce how much you need to withdraw from your TSP or other savings. For example, earning $15,000–$20,000 a year from part-time work can fill much of the gap left by the FERS Supplement or Social Security delay.
This option can also offer emotional benefits: staying engaged, maintaining structure, and easing the transition into full retirement.
However, keep in mind that earned income can reduce your FERS Supplement if you’re receiving it. So if you qualify for that benefit, you’ll need to stay under the annual earnings limit ($23,400 in 2025, though it changes each year).
Option 4: Using a “Bucket” Approach
Some retirees prefer to create a cash bucket — a few years’ worth of expenses held in safer, more liquid investments like cash, CDs, or short-term bonds.
This can allow you to retire with peace of mind knowing that your near-term income needs are covered without being forced to sell long-term investments at a bad time.
A simple example might be:
- 2–3 years of income in cash or short-term bonds,
- 3–7 years in moderate investments, and
- The rest in long-term growth assets.
When the FERS Supplement ends (or before Social Security begins), you can draw from your short-term “bridge” bucket rather than tapping your TSP aggressively during market downturns.
Option 5: Adjusting Your Timing or Spending
For some federal employees, the simplest solution is to retire a little later or adjust spending slightly during those early years.
Working just one or two more years can increase your FERS pension, boost your TSP savings, and shorten the gap period — all of which make your retirement plan more sustainable.
Others may choose to retire on time but live a little leaner for a few years, knowing that once Social Security starts, their income will rise again.
Delaying Social Security: Why It Often Pays Off
While you can start Social Security at 62, delaying can provide significant advantages. For every year you wait (up to age 70), your benefit grows by roughly 6% to 8%.
That increase doesn’t just affect you — if you’re the higher earner, your surviving spouse will also receive that higher benefit for the rest of their life.
So, if you have the means to fill the gap with TSP withdrawals or part-time work, delaying Social Security can often lead to a more secure, inflation-protected income later on.
Bridging the Gap the Smart Way
Ultimately, there’s no one-size-fits-all solution. The best strategy for bridging the gap between FERS and Social Security depends on your savings, lifestyle, and goals.
Here’s a quick summary:
- FERS Supplement: Great if you qualify, but it stops at 62.
- TSP Withdrawals: Flexible, especially if you plan ahead.
- Part-Time Work: Provides income and purpose.
- Cash Bucket Strategy: Offers peace of mind and market protection.
- Delay Social Security: Can lead to higher lifetime income.
Your federal benefits give you powerful tools to retire confidently — but the key is coordinating them wisely. A well-thought-out plan can turn that “income gap” into a smooth, worry-free transition from full-time work into full-time retirement.
