A rotary hammer includes a motor, a spindle coupled to the motor for receiving torque from the motor, a piston at least partially received within the spindle for reciprocation therein, a striker received within the spindle for reciprocation in response to reciprocation of the piston, and an anvil received within the spindle and positioned between the striker and a tool bit. The rotary hammer also includes a retainer received within the spindle for selectively securing the striker in an idle position in which it is inhibited from reciprocating within the spindle, and an O-ring positioned between the retainer and the spindle. The O-ring is disposed around an outer peripheral surface of the anvil. The O-ring is compressible in response to the striker assuming the idle position. The compressed O-ring imparts a frictional force on the outer peripheral surface of the anvil to decelerate the anvil.