Railroad retirement follows its own rules, separate from Social Security and federal pensions. We help you understand your Tier I and Tier II benefits, your spouse's benefits, and how it all fits with the rest of your savings.
Tier I is based on your combined railroad and Social Security earnings, using a Social Security-style formula. It's the foundation of your monthly annuity.
Work you did outside the railroad can count toward Tier I, so earlier jobs still matter.
Tier II is based only on your railroad earnings and years of service. It works much like a private pension layered on top of Tier I.
Every year of railroad service adds to Tier II, which is part of why the timing of your retirement matters.
An eligible spouse can receive a basic annuity of 50% of your Tier I amount plus 45% of your Tier II amount. Survivor benefits can continue for a widow or widower after you're gone.
Your spouse's own Social Security, savings and timing all affect what makes sense for your household, so we look at both of you together.
Railroad retirement age depends on how long you've worked in the industry. Here's the general picture; your own record decides the details.
You can retire at 60 with an unreduced annuity. A spouse can generally begin the first full month they turn 60, too.
Unreduced annuityYou can begin your annuity at 62. Benefits taken before full retirement age are reduced, so timing is worth comparing.
Reduced before full retirement ageA disability annuity may be available at any age if you're permanently disabled, subject to the RRB's service and medical rules.
Based on your recordRailroad annuities can be reduced if you go back to work for the last non-railroad employer you had before retiring. If you're thinking about part-time work, it's worth knowing the rules first.
Your annuity is one piece. We bring it together with your savings, your spouse's benefits and your goals so the whole picture makes sense.
We walk through your official estimate together so you know what each number means and what it's based on.
Compare retiring at different ages, including how waiting can increase your Tier I amount up to age 70.
Understand what a widow or widower would receive, generally starting at 60, or at any age while caring for a qualifying child.
If you or your spouse also earned Social Security, we look at how dual benefits fit together so nothing is left on the table.
Turn your 401(k), IRAs and other savings into steady income that works alongside your railroad annuity.
Plan for Medicare, health coverage before 65, and the taxes on your benefits and withdrawals.
The Railroad Retirement Board is the official source for your record and benefit amounts. These are good places to begin, and we're happy to go through what you find together.
Request an employee and spouse annuity estimate through the myRRB portal on rrb.gov. Sign-in uses Login.gov.
The RRB's own guide covering retirement, spouse and survivor benefits, cost-of-living adjustments and work rules.
Schedule a free conversation. We'll look at your annuity, your spouse's benefits and your savings, and map out options that fit the retirement you're planning.
Octus Financial is not affiliated with or endorsed by the U.S. Railroad Retirement Board. This page is general education; your benefit amounts and eligibility are determined by the RRB based on your own record.