For many Florida Retirement System (FRS) members, the idea of retiring early — especially after a demanding career in public safety — can be appealing. But leaving even a few years before full retirement age can carry hidden costs. Beyond reducing your pension and DROP potential, early retirement may leave a larger gap before you qualify for Social Security and Medicare.
Your FRS pension is based on:
Average Final Compensation (AFC) × Years of Service × Multiplier = Annual Benefit
Years of Service: Retiring early reduces the service years multiplied into your benefit.
AFC: Stopping work earlier may mean your highest-earning years aren’t fully captured.
Multiplier: For Special Risk members, each additional year adds 3% of AFC — a meaningful change over a lifetime.
💡 Example: Leaving just 3 years early could mean a 9% reduction in lifetime pension income.
Entering DROP earlier or cutting service short reduces the balance you can build.
More years of service before entering DROP = larger monthly deposits.
Retiring early can mean a smaller lump sum when it’s time to leave.
While your FRS pension is a separate benefit, most retirees also look to Social Security. Retiring too early can widen the gap between leaving work and collecting benefits.
Eligibility begins at age 62, but benefits are permanently reduced if you start early.
Full Retirement Age (FRA) is 66–67, depending on your birth year. Waiting until FRA means higher monthly benefits.
Delaying to age 70 can further increase monthly payments.
💡 If you retire at 52 but don’t collect Social Security until 62, that’s a 10-year gap where your pension and savings must fully cover your income needs.
Medicare eligibility begins at age 65. Retiring early often means decades of coverage to bridge:
Employer retiree plans: Some agencies allow you to stay on, but premiums may be high.
ACA/Marketplace plans: Available, but subject to full cost until Medicare kicks in.
FRS Health Insurance Subsidy: Helps offset premiums ($7.50 per year of service, max $225/month), but usually doesn’t cover full costs.
💡 Example: A retiree leaving at 50 has 15 years before Medicare, meaning health coverage planning can b critical
More years of expenses before Social Security or Medicare begin.
Higher reliance on pension and DROP to cover living and health costs.
Potential tax strain from drawing larger amounts from DROP or savings to fill the gap.
How will I cover health insurance until Medicare?
Do I have enough savings to bridge the gap before Social Security?
Would working 2–3 more years meaningfully change my pension and DROP outcomes?
Am I comfortable relying heavily on my pension and savings for a longer period?
Early retirement can be the right choice for many FRS members, but it comes with trade-offs. Leaving too soon means not only a smaller pension and DROP balance, but also a longer wait until Social Security and Medicare begin.
By carefully weighing these factors — and creating a plan for health coverage and income during the gap years — you can approach retirement with more confidence and fewer surprises.
*This material is provided for educational purposes only and is not intended to provide personalized investment, legal, or tax advice. Results will vary based on individual circumstances. Please consult a qualified professional regarding your own situation.