FERS Best Dates To Retire 2025

It’s finally here! You’re eligible to retire, and you’ve confirmed it’s financially feasible. Now, the only question is choosing the optimal retirement date. For federal employees, December 31st is often ideal, and this is not only for fers best dates to retire 2025,but every time as it allows you to carry over the maximum amount of annual leave. This timing also explains the surge of retirement applications the OPM receives at the start of each year.

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For example, James plans to retire on Saturday, May 31, 2026 (or Friday, May 30, 2026), after 24 years of service at age 60, at the end of leave period 10. Although he turns 60 on May 14, James has chosen to retire at the end of May to ensure he receives his full salary through May 31. His official retirement will begin on June 1, regardless of whether he retires on May 14 or May 31.

By waiting, James will be paid his full biweekly salary for leave period 10 and will also accrue his final leave (8 hours of annual leave and 4 hours of sick leave). His first monthly retirement payment will cover June, with the payment issued on July 1.

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1. Best Dates To Retire From Federal Government In 2025

• December 31, 2025 - End of the month. End of the leave year.
• January 11, 2025 - End of a pay period. End of the leave year.
• May 31, 2025 - End of a pay period. End of the month.
• October 31, 2025 - End of a pay period. End of the month.

2. FERS Best Dates To Retire 2026

• December 31, 2026 - The end of a pay period and the leave year
• January 10, 2026 - The end of a pay period and the leave year
• May 31, 2026
• October 31, 2026

3. The Best Dates To Retire in 2027

• December 31, 2027
• January 8, 2027
• April 30, 2027
• October 31, 2027

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2028:

• Saturday, April 29th
• Saturday, September 30th

2029:

• Saturday, March 31st
• Saturday, September 29th

2030:

• Saturday, August 31st
• Saturday, March 30th

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Here is a calendar to help you plan your best date for 2025 retirement.

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Here Are a Few Additional Factors to Consider When Selecting Your Retirement Date:

• Social Security: If eligible for Social Security benefits, you might consider waiting until you reach your Full Retirement Age (FRA) to secure a higher monthly benefit.
• Thrift Savings Plan (TSP): Think about how your retirement date could influence the performance of your TSP investments.
• Federal Employees Health Benefits (FEHB): Remember to enroll in an FEHB plan during the open enrollment period, which typically takes place in the fall.

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Choosing the right date for your retirement is more important than many realise. Ideally, you should aim for a date that falls at the end of both a pay period and the calendar month. This strategy allows you to make the most of your accrued annual leave and ensures your FERS pension starts promptly on the first of the following month.

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If you’re in a financially comfortable position and don’t need immediate income after retiring, you have greater flexibility in selecting your retirement date. Retiring at the end of any pay period can be a smart move, as there are usually 26 or 27 pay periods in a year—giving you plenty of options.

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However, retiring before the end of a pay period can result in missed benefits. You may be forfeiting the leave hours you’ve earned during that period. To get a sense of what this might cost you, divide your annual salary by 2,087 (standard full-time hours), then multiply by 8—the number of leave hours typically accrued each pay period. If the resulting figure is significant, it might be worth delaying your retirement by just a few days to secure that value.

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There’s also a common misconception that 31st December is the ideal date to retire. While this date ensures your pension begins on 1st January, it often does not align with the end of a pay period. That means you might lose out on your final leave accrual. On the upside, any lump sum payment for unused annual leave would be paid in the new tax year—potentially lowering the tax you owe on that amount, as your post-retirement income will likely be reduced.

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Deciding when to retire isn’t always straightforward. At Serving Those Who Serve, we’re dedicated to helping federal employees make informed choices about their retirement. From benefit calculations to retirement date strategies, we provide tailored guidance every step of the way. Get in touch for a personalised consultation and take the guesswork out of your retirement planning.

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But Why Are These The Best?

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**Maximizing Annual Leave Payout:**

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- **End-of-Month Retirement**: Retiring on the last day of the month allows you to accrue and receive payment for a full month’s worth of annual leave. This can be particularly beneficial if you have a large amount of accrued leave.

- **Mid-Year Retirement Strategy**: Retiring on May 31st is another option if you have substantial accrued leave, as it lets you utilize your leave before the new leave year begins, maximizing your payout.

**Minimizing the Gap Between Paychecks:**

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- **End-of-Month Retirement**: By retiring on the last day of the month, you receive your full paycheck for that month, reducing the gap between your final government paycheck and the start of your retirement benefits.

**Other Considerations:**

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- **Social Security**: Coordinate your retirement date with your Social Security claiming strategy if you plan to receive benefits.

- **Health Insurance**: Be mindful of open enrollment for Federal Employees Health Benefits (FEHB) to ensure a smooth transition in your health coverage.

- **TSP (Thrift Savings Plan)**: Consider how your retirement date could affect your TSP withdrawal strategy and any potential tax impacts.