The five-time All-Star catcher is ending his major league career after 17 seasons, all with the New York Yankees.
The 40-year-old Posada finishes with a .273 career batting average, 275 home runs and 1,065 RBIs. Shifted to designated hitter last year, his playing time diminished.
Posada joins Bernie Williams and Andy Pettitte in retirement, leaving only 37-year-old Derek Jeter and 42-year-old Mariano Rivera from the core group that led the Yankees to four World Series titles in five years from 1996-2000.
With Rivera and CC Sabathia looking on, Posada began by quoting Joe DiMaggio: "I want to thank the good Lord for making me a Yankee."