What Is the Retirement Age in Florida?

The retirement age in Florida, specifically for those enrolled in the Florida Retirement System (FRS) for public-sector workers, depends on the employee's age and years of service. Early retirement is possible, but it comes with a reduction in benefits. For most members of the FRS Pension Plan, the normal retirement age is 62 or 65, depending on when they were hired. However, some government employees may retire earlier, such as those in high-risk jobs like law enforcement officers.

Whether you live in Florida or elsewhere, an experienced financial advisor can help you determine when retirement makes the most sense

What Is the Florida Retirement System?

The Florida Retirement System (FRS) is a state-run program that has provided retirement benefits to public employees for over 50 years, including teachers, firefighters and law enforcement officers. It also includes state and local government employees. Participation in the FRS is automatic for eligible employees.

The system offers two types of retirement plans: the Pension Plan and the Investment Plan. The Pension Plan is a traditional, defined benefit plan where employees earn a guaranteed monthly benefit based on their years of service, salary and age at retirement. This plan is more predictable but requires longer service to maximize benefits.

The Investment Plan, on the other hand, is a defined contribution plan. Employees and employers contribute a percentage of the employee's salary into an account, which is then invested. The retirement benefit depends on how well the investments perform. This plan offers more flexibility and portability, as it can move with the employee if they change jobs.

Participants choose between these two plans within their first few months of employment and have one opportunity to switch plans later in their careers.

What Is the Retirement Age in Florida?

Eligibility for benefits in the FRS depends on whether participants are enrolled in the Pension Plan or the Investment Plan. Each plan has different rules governing when employees can retire and how their benefits are calculated.

Pension Plan Retirement Age and Eligibility

For participants in the FRS Pension Plan, eligibility for full retirement benefits is based on either age or years of service.

• Regular class employees : Regular class members can retire with full benefits at age 62 or after 30 years of service, whichever comes first. If an employee chooses to retire before reaching these thresholds, they can still retire early at age 55 with at least six years of service, but their benefits will be reduced by 5% for each year they retire before the normal retirement age of 62. For regular class employees who were hired after July 1, 2011, the rules are slightly different. These employees must wait until age 65 or complete 33 years of service to retire with full benefits.
• Special risk class employees : This class includes law enforcement officers, firefighters and other high-risk jobs. They can retire at age 55 with at least six years of service or at age 52 after 25 years of service and up to four years of active-duty military service. Special risk members also have the option of early retirement but with reduced benefits.

As noted, early retirement is available for FRS Pension Plan participants, but benefits are reduced by 5% per year before normal retirement age. This can lead to a significant decrease in monthly pension payments over the long term.

Investment Plan Retirement Age and Eligibility

The FRS Investment Plan operates differently from the Pension Plan because it has no fixed retirement age or service requirement for full benefits. Instead, eligibility is tied to how much has been contributed and how well those contributions have performed.

• Vesting : In the Investment Plan, employees are vested after one year of service, meaning they are entitled to the employer contributions and investment earnings if they leave their job. Vesting occurs much earlier than in the Pension Plan, where employees typically vest after eight years of service.
• Retirement age : There is no specific “retirement age” under the FRS Investment Plan. Vested employees within 20 years of retirement age can begin withdrawing from their investment account as early as age 59 ½ without facing any penalties. However, if employees retire or leave FRS-covered employment before age 59 ½, they may face a 10% early withdrawal penalty from the IRS, in addition to any taxes owed.
• How benefits are paid : Unlike the Pension Plan where retirees receive a monthly benefit for life, the Investment Plan offers more flexibility in how benefits are paid. Retirees can take lump-sum distributions , roll their balance over to another retirement account or set up regular withdrawals based on their personal needs.

What Is the Deferred Retirement Option Program (DROP)?

The Deferred Option Retirement Program (DROP) is an option available to members of the FRS Pension Plan. DROP allows eligible employees who have reached their normal retirement age or service requirements to “retire” while continuing to work. Instead of receiving monthly pension payments immediately, those payments are placed into a special account where they earn interest.

To be eligible for DROP, participants must meet the retirement eligibility criteria for their class (e.g., age 62 or 30 years of service for Regular Class employees). Special risk class members qualify at age 55 or 25 years of service.

Once they officially retire, eligible employees receive the accumulated DROP balance in a lump sum, direct rollover or combination of the two, along with their regular pension payments moving forward. DROP provides an additional retirement planning option for employees who wish to continue working while securing their pension benefits.

What's the Retirement Age for Private Sector Workers in Florida?

Private sector employees in Florida often follow the same federal retirement guidelines for Social Security and Medicare. Florida residents can retire before the full retirement age (FRA) by claiming Social Security benefits at 62. However, this comes with a reduced monthly payment. For example, if your FRA is 67 and you claim benefits at 62, your monthly benefit could be reduced by about 30 percent. This reduction is permanent, so it's important to weigh the pros and cons of early retirement.

Private sector workers who are enrolled in retirement plans like 401(k)s or have IRAs can begin withdrawals without penalties at age 59 ½. While you can technically retire at any age, accessing these funds before 59 ½ might result in penalties and taxes.

Bottom Line

The Florida Retirement System (FRS) provides a range of retirement options for public employees, with eligibility based on age and years of service. Employees can choose between the Pension Plan, which offers a lifetime monthly benefit, and the Investment Plan, which provides flexibility in how funds are managed and withdrawn. Special risk class members, like law enforcement officers and firefighters, have different retirement rules compared to regular class employees. Additionally, the Deferred Retirement Option Program (DROP) allows employees to continue working while accumulating retirement benefits.

Retirement Planning Tips

• Hold a mix of tax-deferred, tax-free and taxable investment accounts to create flexibility in withdrawals during retirement . This allows for more control over taxable income and can help manage tax brackets in retirement.
• A financial advisor can help you plan for retirement and build an income plan based on your needs. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .

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