Why your FERS pension shrinks
Trimmed COLAs, none before 62.
It compounds. A point a year doesn’t sound like much — until you see it over 25 years.
Jump to a section
1. The formula
| If inflation (CPI-W) is… | FERS gets | CSRS and Social Security get |
|---|---|---|
| 2% or less | The full CPI | The full CPI |
| Over 2%, up to 3% | 2% | The full CPI |
| Over 3% | CPI minus 1 | The full CPI |
In 2026 that meant 2.8% for CSRS retirees and 2.0% for FERS. The details, including how the first COLA is prorated, are in FERS and CSRS COLAs explained.
2. Project your pension
Try retiring at 57 versus 62: the years before 62 with no COLA at all add to the loss, on top of the diet formula.
3. Who gets a COLA before 62
- Disability retirees, from the start.
- Special-provision retirees — law enforcement officers, firefighters, air traffic controllers.
- Survivors receiving a FERS survivor annuity.
Everyone else waits for their 62nd birthday. See turning 62 as a FERS retiree.
4. Planning around it
FERS was designed as three legs, and two of them keep up with inflation better than the pension does:
- Social Security gets the full COLA. Delaying it makes the fully indexed part of your income bigger.
- The TSP can outgrow inflation if part of it stays in stocks through retirement.
- Inflation-protected bonds such as TIPS and I bonds track the CPI directly. See protecting savings from inflation.
5. Frequently asked questions
What is the FERS diet COLA?
FERS retirees get a cost-of-living adjustment capped below inflation when inflation is above 2%. If the CPI rises 2% or less, FERS gets the full amount. Between 2% and 3%, FERS gets 2%. Above 3%, FERS gets the CPI minus one percentage point. CSRS retirees and Social Security get the full CPI.
Do FERS retirees get a COLA before age 62?
Regular FERS retirees do not receive cost-of-living adjustments until age 62. Disability retirees, special-provision retirees such as law enforcement officers and firefighters, and survivors receive them regardless of age.
How much does the diet COLA cost over a retirement?
It depends on inflation. When inflation runs between 2% and 3%, FERS loses up to a point a year; above 3%, a full point every year. Over 25 years at 3% inflation, a FERS pension can lose roughly a fifth of its buying power compared with a full COLA, more if you retire well before 62.
How can I protect my FERS pension from inflation?
FERS was built to lean on Social Security and the TSP, both of which can keep up with inflation: Social Security gets the full COLA, and delaying it increases a fully indexed benefit. A stock allocation in the TSP and inflation-protected bonds can also help offset the pension’s slower growth.