Starting My Government Pension at 60; When Should I Start Railroad Retirement?

Railroad Retirement Mailbag: Can You Collect Railroad Retirement at 62 After Leaving the Railroad?

Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag. I’m John McNamara with Highball Advisors, and today’s question comes from Kevin C.

Kevin asks:

“I left the railroad after 14 years and currently work in a local township position. I plan to retire in October 2026 when I turn 60, since our pension allows retirement at that age. Am I correct that I can also collect Railroad Retirement at 62?”

The answer is yes—you may begin collecting Railroad Retirement benefits at age 62, even if you retired from your current position earlier.

However, timing matters. If Railroad Retirement benefits are taken at age 60, the annuity is subject to an age-based reduction of approximately 30%. Waiting until age 62 reduces or avoids that penalty, depending on your specific service record and benefit tier.

Another important factor to consider is the Social Security Fairness Act. Depending on whether you paid into Social Security while working in your local township position, you may be eligible to avoid certain benefit deductions. This can have a meaningful impact on your total retirement income and should be reviewed carefully.

To learn more, I recommend watching my video, How the Social Security Fairness Act Affects Your Railroad Retirement, where I explain how deductions are applied and which portion of your Railroad Retirement benefit may be affected.

Understanding how these rules work together can help you make more informed retirement decisions. If you have questions about your own situation, feel free to reach out—your question may be featured in a future edition of the Railroad Retirement Mailbag.

Stay safe, stay on track, and take care.

Get Free Railroad Retirement Assessment

Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.