DATE: Thursday, January 22, 2026
This edition of the Benefits Digest focuses on some of the best days and times of the year to retire in 2026 to maximize your benefits.
Retiring on the Last Day of the Month
For CSRS and FERS employees, voluntary retirement annuities will start on the first day of the month after you retire (e.g., if you retire on May 31, your voluntary retirement annuity will start to accrue on June 1). This means that both CSRS and FERS employees can retire on the last day of the month and their annuity will start the very next day. CSRS employees are also allowed to retire on the first, second, or third day of the month to have their CSRS annuity start the very next day.
Retiring at the End of the Pay Period
If you complete your full tour of duty and you retire at the end of the pay period, you will be paid your full salary for your final two weeks. In addition, you will earn full sick and annual leave accruals for the pay period. If the end of the pay period is on or near the last day of the month, that would be considered an ideal date in that calendar year. If the end of a pay period is within a few days of the last day of the month, like June 27, 2026, that would also be considered an ideal date in that calendar year.
Retiring at the End of the Year
Nearly 40% of all federal employee retirements happen at the end of the year because employees can maximize their annual leave lump sum payout. By carrying over leave from the previous year and saving your accrued leave in the year you retire, some employees can receive an annual leave lump sum payout for more than 400 hours. You can expect to receive your annual leave lump sum payout approximately 45 days after you retire.
Time of Year Considerations
Deciding what time of year to retire is a personal decision. Some employees want to retire in the spring to take advantage of the warmer months at the start of retirement. Others, who may have work deadlines related to the fiscal year, may prefer to retire in September or after the fiscal year has ended. As previously mentioned, many federal employees retire at the end of the year to maximize their annual leave lump sum payout.
Best Days to Retire in 2026
There are a few days in 2026 that may be considered the “best days to retire.”
For FERS employees in 2026, the recommended dates are: May 30, June 27, October 31, November 28, and if planning the end of the year, December 31 even though it is not at the end of a pay period.
For CSRS employees in 2026, the recommended dates are: April 3, May 2, May 30, October 3, October 31, November 28, and if planning to retire at the end of the year, January 2, 2027. Most of these dates are at or near the end of a pay period, and they allow your annuity to commence 1-3 days after retirement.
There are many variables to picking the “best day to retire.” Remember, your retirement date is personal to you and should be taken into consideration when looking to maximize your annuity and leave benefits. The day you choose to retire is entirely up to you. As you prepare for this important life decision, don’t hesitate to contact your servicing HR Representative if you’d like to discuss this topic or any other retirement-related questions.