Can I Choose My Own Retirement Date?
Can I choose my own retirement date?
Is there a best day to retire? The answer is yes, but with some qualifiers. Choosing a retirement date should certainly be of your own choosing. However, there are some important factors to consider when choosing the best retirement date, like are you getting the maximum benefit available to you.
To be on the safe side, it is a good rule of thumb to visit your human resources office where your employment records are kept to discuss best options for your retirement date and other subjects. Your human resources office should be able to determine if you meet the age and length of service requirements based on the date you have chosen. It is good to select a number of potential retirement dates so that you are not disappointed if the first choice is not to your advantage.
The human resources office will not only help you choose the best day to retire but will speak to you about when your annuity payments will begin based on the selected date of retirement. They will also counsel you if you do not meet the age and service requirements and help you understand how the additional requirements can be met. Human resources cannot, however, help calculate how your TSP account balance or help you make TSP related decisions, or any other savings may impact your decisions about retirement. You will need to talk with a financial professional who is also an expert in your benefits for that type of calculation.
For example, under the Civil Service Retirement System (CSRS) if you retire between the 1st thru the 3rd of the month your annuity will begin the following day and you will receive your check on the 1st of the following month. If you retire on the 4th and after your annuity will begin the following month and you will receive your check on the 1st of the next month. Example: Retiring on the 4th of October and after, annuity begins in November and you will receive your check in December. There is a remarkable time difference based on when you retire. Therefore, knowing when to retire is very important information to have at your disposal.
The annuity begins the 1st day of the following month for employees retiring under the Federal Employees Retirement System (FERS). Having the right information, carefully evaluating all of the available information (including TSP allocations, etc.) and selecting options that offer you the greatest benefit is without question the best date to retire well.
P. S. Always Remember to Share what You Know.
What should you do 1 Year before Retirement
Postal employees should regularly check their LiteBlue information (FEHB, TSP.gov allocations, etc.)
