FERS Best Dates To Retire 2025

Timing matters. For federal employees, choosing the right retirement date can maximize your annual-leave payout, get your pension rolling at the best moment, and avoid leaving money on the table. Below is a comprehensive guide tailored for FERS employees, with verified pay-period end-dates, leave-year endings, and strategic insights.

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Why Retirement Date Matters

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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.

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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.

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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?

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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 2025–2030.

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Best Retirement Dates by Year

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Below are the best dates to retire, verified for end of pay period + end of leave year or month, for 2025 through 2030.
Note: Always check your agency’s final payroll schedule & local leave-year rules; these are the government-wide standard dates.

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

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The wrong retirement date could mean losing thousands. Let’s lock in your ideal FERS retirement date schedule your retirement strategy call now.

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Also Read : Common Mistakes to Avoid in Federal Employee Retirement Planning

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Why These Dates Are Ideal

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Maximizing Annual Leave Payout

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• 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

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• 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

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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

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Additional Considerations Before Setting Your Retirement Date

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When you’re thinking about which date works best, you’ll also want to factor in:

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Social Security Timing

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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.

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Thrift Savings Plan (TSP) Strategy

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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.

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Federal Employees Health Benefits (FEHB) & Other Coverage

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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.

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Annual Leave & Sick Leave

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• 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

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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.

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Pay-Period Length (26 vs 27 Pay Periods)

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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

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• 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

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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.

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What You Should Do Now

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1. Review your agency’s pay-period calendar for the year you plan to retire.
   
   
2. Check your leave accrual and hours especially annual and sick leave balances.
   
   
3. Talk with your HR/Payroll office to confirm that the date you choose ends the pay period and starts the month/next month pension.
   
   
4. Coordinate your retirement date with your TSP withdrawal strategy, Social Security claim, and FEHB continuation.
   
   
5. Schedule a benefits review to confirm how your decision affects your pension, leave payout, taxes, and Medicare timing.

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