You’re not alone; 4,359 federal employees booked their free review.
.png)
FERS Best Dates to Retire (2026–2030): How to Maximize Leave & Pension Timing
Timing matters. For federal employees covered under FERS, choosing the right retirement date can significantly increase your annual-leave payout, prevent pension delays, and reduce income gaps between your final paycheck and first annuity payment.
For FERS federal employees, the best retirement dates depend on how pay-period endings, leave-year cutoffs, and month-end pension rules align. This guide explains the most strategic FERS retirement dates for 2025, 2026, 2027, 2028, and beyond, using government-wide rules federal employees rely on when planning retirement.
Quick Answer: Best FERS Retirement Dates by Year
- 2026: January 10, May 31, October 31, December 31, or January 9, 2027
- 2027: January 9, October 30, or December 31
- 2028: April 28, September 29, or December 31
The “best” date depends on whether you are prioritizing maximum annual-leave payout, a smooth paycheck-to-pension transition, or calendar-year simplicity.
Why Retirement Date Matters
When planning for retirement, timing is everything especially for Feds looking to get the most out of their benefits. One of the key factors in ensuring a smooth transition is choosing the right date to retire.
Ideally, you want to retire on the last day of a pay period so you get full credit for the annual leave you accrued in that period. Retiring too early in a pay period could mean forfeiting the 8 hours of annual leave (or more, depending on your accrual rate) you earned in that final pay period. Federal pay periods technically end on Saturdays even though they are not business days.
Additionally, targeting the end of the calendar month can be smart, because your pension (for FERS) will begin on the first day of the following month. For example, if you retire on Friday, November 28, 2024 your pension starts 12/1/24. If you retire Thursday, November 27, you miss the month-end and your pension begins 1/1/25 leaving money on the table in both salary and leave accrual since you didn’t hit the Saturday pay-period end. Confusing enough?
At Serving Those Who Serve, we help simplify these decisions. So without further ado, here are the most optimal retirement dates for FERS employees across 2026–2030.
Best Retirement Dates by Year
Below are the best dates to retire, verified for end of pay period + end of leave year or month, for 2026 through 2030.
Note: Always check your agency’s final payroll schedule & local leave-year rules; these are the government-wide standard dates.
Key takeaway:
- January leave-year dates often maximize leave payout
- Month-end pay-period dates reduce pension delays
- December 31 offers calendar-year simplicity but not always the highest leave value
Here is a calendar to help you plan your best date for 2025 retirement.
The wrong retirement date could mean losing thousands. Let’s lock in your ideal FERS retirement date schedule your retirement strategy call now.
Also Read : Common Mistakes to Avoid in Federal Employee Retirement Planning
Best Dates to Retire in 2026 (FERS)
For FERS employees retiring in 2026, the most strategic dates are January 10, May 31, October 31, December 31, and January 9, 2027.
January leave-year dates maximize annual-leave payouts, while month-end pay-period dates help ensure a smooth transition from salary to pension with minimal income gaps.
Best Dates to Retire in 2027 (FERS)
In 2027, fewer dates align cleanly with both pay-period endings and month-end pension rules.
- January 9, 2027 is typically the best date for maximizing annual-leave payout.
- October 30, 2027 offers the cleanest paycheck-to-pension transition.
- December 31, 2027 is often chosen for calendar-year simplicity rather than maximum leave value.
Best Dates to Retire in 2028 (FERS)
For 2028, strong candidates often include April 28, September 29, and December 31.
Because pay-period alignment varies more by agency in 2028, confirming payroll calendars is especially important before finalizing your retirement date.
Why These Dates Are Ideal
Maximizing Annual Leave Payout
- Retiring on the final day of a pay period ensures you collect your full annual-leave hours for that period.
- For example: If you retire mid-pay-period, you may lose 8 hours (or 10 hours if you accrue more) of annual leave, which converts to cash at your hourly rate.
- Retiring at month-end means your lump-sum payout for unused annual leave may come in the next tax year, potentially reducing tax liability.
Ensuring Pension Starts Immediately
- For FERS: The pension begins the first day of the next month.
- Retiring on the last day of the month means no gap between salary and pension.
- Avoid retiring just short of month-end and waiting nearly a full month for pension benefit.
Minimizing Paycheck Gaps
By selecting a Saturday that ends a pay period and month/quarter, you reduce the gap between your last paycheck and first pension payment, making the transition smoother especially if you're still waiting for TSP or other sources to kick in.
Check out the - FERS Supplement Calculator
Additional Considerations Before Setting Your Retirement Date
When you’re thinking about which date works best, you’ll also want to factor in:
Social Security Timing
If you’re eligible for Social Security benefits, coordinating your retirement date with your Full Retirement Age (FRA) or claiming decision can enhance lifetime benefits.
Thrift Savings Plan (TSP) Strategy
Your retirement date can influence TSP investing, tax-efficient withdrawal timing, and RMD (Required Minimum Distribution) strategies. A well-timed retirement might allow you to optimize conversion, avoid large taxable events, or improve investment timing.
Federal Employees Health Benefits (FEHB) & Other Coverage
Make sure your retirement date aligns with FEHB open-enrollment cycles, coverage continuation rules, and any employer contributions. A misstep could impact premiums or coverage gaps.
Annual Leave & Sick Leave
- Annual leave: Paid out in a lump sum at retirement for unused hours.
- Sick leave: Not paid out in cash, but converts to service credit for FERS pensions. Accruing full sick-leave hours through a full pay period maximizes your service credit.
FERS Supplement Eligibility
If you retire before age 62 and qualify for the FERS Supplement (or want it), timing the retirement date matters because the supplement starts the first day of the third month after retirement. Choosing the right date can maximize the supplement duration.
Pay-Period Length (26 vs 27 Pay Periods)
Some years have a 27th pay period, which affects leave accrual and carryover. Ensuring your date falls after a regular pay period cycle helps avoid unintended forfeiture.
Common Mistakes to Avoid
- Retiring mid-pay period: You forfeit leave hours and may complicate payroll.
- Assuming December 31 is always best: Yes, it triggers a January 1 pension start, but often does not coincide with a pay-period end. You might lose leave hours and payout.
- Ignoring sick-leave credit: Sick leave adds service credit—don’t overlook it.
- Ignoring TSP/retirement-account timing: Conversions, withdrawals, and market timing impact taxable income and pension calculations.
- Failing to coordinate FEHB or other benefits: Missed deadlines can result in gaps or cost increases.
Example Scenario
Meet James, age 60 with 24 years of service. He plans to retire Saturday, May 30, 2026 (end of pay period #10). Although he turns 60 on May 14, by retiring May 30 he:
- Allows full salary for pay-period #10
- Accrues full annual and sick leave for that pay period
- Starts his pension June 1 (first of month)
- More clean transition to retirement benefits and minimal gap
Had he retired earlier say May 14 he’d lose several earned hours and delay pension payment.
What You Should Do Now
- Review your agency’s pay-period calendar for the year you plan to retire.
- Check your leave accrual and hours especially annual and sick leave balances.
- Talk with your HR/Payroll office to confirm that the date you choose ends the pay period and starts the month/next month pension.
- Coordinate your retirement date with your TSP withdrawal strategy, Social Security claim, and FEHB continuation.
- Schedule a benefits review to confirm how your decision affects your pension, leave payout, taxes, and Medicare timing.
Final Thoughts
There is no single best retirement date for every federal employee, but there are dates that consistently produce better outcomes.
January leave-year dates tend to maximize cash payouts.
Month-end pay-period dates reduce pension delays.
Year-end dates simplify administration and taxes.
The strongest strategy is choosing the date that best matches your priorities, using rules that apply every year not guesswork.
Federal Retirement Date FAQs (FERS)
What is the single best date to retire under FERS?
There is no single best retirement date for every FERS employee. The optimal date depends on whether you are prioritizing maximum annual-leave payout, a smooth pension start, or calendar-year simplicity. In most years, the best dates fall at the end of a pay period, the end of the leave year, or the end of the calendar month.
Why do so many federal employees retire at the end of the leave year?
Retiring before the leave year resets allows federal employees to receive payment for all accumulated annual leave, including amounts above the standard 240-hour carryover limit. This is why early-January retirement dates are often associated with the highest leave payouts.
Is December 31 always a good retirement date for FERS employees?
December 31 can be a good option for employees who want a clean calendar-year break and a January 1 pension start. However, it does not always align with the end of a pay period or the leave year, which means it may not maximize annual-leave payouts compared to January leave-year dates.
Why does retiring at the end of a pay period matter?
Federal employees earn annual and sick leave only after completing a full pay period. Retiring even one day before the pay period ends can result in the loss of that entire period’s leave accrual, which directly affects leave payout and service credit.
When does a FERS pension actually start after retirement?
Under FERS rules, the pension begins on the first day of the month following retirement. Retiring at the end of the month helps avoid a delay that could otherwise push the pension start back by nearly a full month.
Does sick leave get paid out when I retire?
Unused sick leave is not paid out as cash. Instead, it is converted into additional service credit and added to your total years of service when calculating your FERS pension.
Can my retirement date affect my Thrift Savings Plan (TSP)?
Yes. Your retirement date can influence withdrawal timing, tax-year income, and Roth conversion strategies. Coordinating your retirement date with your TSP plan can help reduce unnecessary taxes and income gaps.
Should I confirm retirement dates with my agency?
Always. While government-wide pay-period and leave-year rules apply to most employees, agency payroll calendars can vary. Confirming dates with your HR or payroll office before submitting retirement paperwork is strongly recommended.
Disclaimer
This article is intended for informational and educational purposes only. It should not be considered financial, legal, or tax advice. Individual circumstances vary, and federal retirees should consult with a qualified tax or financial professional before making decisions regarding IRMAA, income management, or Medicare planning.
Get Updated
Subscribe to our weekly updates for the latest on retirement planning, federal benefits, exclusive webinars, and more!
Jeremy Haug
Jeremy is a seasoned contributor for Federal Pension Advisors bringing years of experience in helping federal employees understand their pension and benefits. His goal is to make retirement planning clear, practical, and empowering.
Download Federal Retirement: Step-by-step Checklist
This comprehensive guide will help you understand your federal benefits, optimize your savings, and plan for a comfortable future.
