What Are The Best Dates To Retire In 2026?

Let’s get straight to the point. Here are the top dates to retire in 2026 if you’re a federal employee:

January 10, 2026

May 31, 2026

October 31, 2026

December 31, 2026

January 9, 2027

So, what makes these dates stand out?

Let’s unpack the main factors that go into choosing the perfect retirement date as a FERS employee.

1. Retiring at the End of the Month

Your FERS pension always begins the month after you retire.

For instance, if you retire on January 1st, your pension won’t kick in until February 1st—leaving you with an entire month without any income from your pension.

However, if you retire on January 31st, your first pension check would still arrive on February 1st. That’s only a one-day gap, not a full month.

That’s why most federal employees plan their retirement toward the end of the month—to minimize the time between their last paycheck and their first retirement check.

2. Retiring at the End of a Pay Period

Your annual and sick leave are earned at the end of each pay period, not throughout it.

If you retire mid-pay period, you miss out on that entire period’s accrual—you don’t get partial credit.

For example, let’s say your last workday is one day before the pay period closes. You’ll lose the annual and sick leave you would’ve earned if you stayed just one more day.

This can have real financial impact:

Unused sick leave increases your pension calculation.

Unused annual leave gets paid out to you in a lump sum after retirement.

Because of that, it almost always makes sense to retire at the end of a pay period to lock in those final hours.

3. Retiring at the End of the Leave Year

This is where the biggest opportunity comes in for many federal workers.

Most feds can carry over 240 hours of annual leave from one leave year to the next. Anything beyond that is “use-or-lose” time.

However, if you retire before the leave year ends, you’ll be paid out for all of your unused annual leave—even if it’s well above 240 hours.

Here’s an example:

If you’ve banked 360 hours of annual leave and retire right before the end of the leave year, you’ll receive a lump-sum check for those full 360 hours. But if you waited until after the leave year rolled over, anything above 240 hours would vanish.

That’s why many employees time their retirements for the very end of the leave year—to get paid for every hour they’ve earned.

Why These Dates Work So Well

Let’s break down each of the best 2026 retirement dates and why they’re smart choices.

January 10, 2026 – End of Pay Period and Leave Year

This is one of the best dates of the year to retire. It’s both the end of a pay period and the end of the leave year, allowing you to accrue every possible hour of leave and cash out your entire annual leave balance—even beyond the 240-hour cap.

If you’re aiming to retire early in 2026, this date helps you start the year strong and maximize your benefits at the same time.

May 31, 2026 – End of Month and Pay Period

May 31st hits the sweet spot for mid-year retirees—it’s the end of both the month and a pay period.

That means your pension starts June 1st, you get full leave accrual for the final period, and you avoid any income gaps. This date is perfect for those looking to enjoy summer as a new retiree without waiting until year-end.

October 31, 2026 – End of Month and Pay Period

If you prefer to retire in the fall, this one’s ideal. October 31st wraps up both the month and the pay period, ensuring your pension begins November 1st.

This timing also lets you get your retirement paperwork completed before the busy end-of-year rush—making for a smoother transition.

December 31, 2026 – End of Month and Pay Period

This is one of the most popular federal retirement dates.

It’s the last day of the calendar year, the end of a pay period, and a natural milestone to finish your federal career. Your pension will begin January 1, 2027, so you’ll experience virtually no gap in income.

While it’s not technically the end of the leave year, it’s still a clean and financially efficient time to retire—especially if you want a “fresh start” in the new year.

January 9, 2027 – End of Pay Period and Leave Year

Just like January 10, 2026, this is arguably the best date for maximizing your annual leave payout.

It’s the end of the leave year, meaning you’ll get paid for all accumulated annual leave (even beyond the 240-hour cap). It’s also the end of a pay period, ensuring you earn your final leave accruals.

This date also gives you an extra week or two of pay in the new year before stepping into retirement—making it a great blend of practicality and financial benefit.

Are You Eligible to Retire?

Before locking in a date, make sure you’re actually eligible for retirement.

Under FERS, full retirement eligibility generally means meeting one of the following:

30 years of service at your Minimum Retirement Age (MRA)

20 years of service at age 60, or

5 years of service at age 62

If you’re a special provisions employee (such as law enforcement, firefighter, or air traffic controller), you may qualify with 20 years of service at age 50, or 25 years of service at any age.

There are also other options like MRA+10, postponed, deferred, and disability retirements—each with different benefits and eligibility rules.

Choosing a Date You’re Comfortable With

Your retirement date should work for you, not just the calendar.

Some people can’t wait to leave as soon as they’re eligible, while others enjoy their jobs and prefer to stay longer for personal or financial reasons.

Think about what feels right for your lifestyle, your financial goals, and your peace of mind.

Final Thoughts

Choosing your retirement date is one of the most important financial decisions you’ll make as a federal employee. The best dates to retire in 2026—January 10, May 31, October 31, December 31, and January 9, 2027—are ideal because they:

Let your pension start with minimal delay

Ensure you get full leave accrual for your final pay period.

Maximize your annual leave lump-sum payout.

Of course, every situation is different. Your service history, financial readiness, and retirement goals all play a role in finding the “right” date for you.

If you’re unsure which date best fits your personal circumstances, consider working with a federal retirement specialist or financial planner who understands the ins and outs of FERS. With the right plan—and the right timing—you can retire confidently and make the most of the benefits you’ve worked so hard to earn.

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