Best Retirement Date Optimizer

Discover the optimal retirement date that maximizes your financial benefits by analyzing leave payouts, COLA timing, TSP contributions, and more.

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The Timing Advantage: Why Your Retirement Date Matters

The difference between retiring on December 31st versus January 3rd can mean thousands of dollars in your pocket. This tool analyzes multiple factors to find your optimal retirement date:

  • Annual Leave Payout: Retiring January 1-3 lets you cash out max leave AND get a new year's worth
  • COLA Timing: January retirees get their first COLA a full year earlier than December retirees
  • TSP Matching: Working into January maximizes your final year's match
  • Health Insurance: Timing affects when retiree premiums start

Enter a year between 2025 and 2055

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Understanding the January 3rd Advantage

Many federal employees don't realize that retiring on January 3rd (or the first workday after New Year's) often provides the maximum financial benefit. Here's why:

  • Leave Restoration: If you have "use or lose" leave that would expire on December 31st, retiring in early January allows that leave to be restored and paid out
  • New Leave Accrual: You'll earn additional annual and sick leave for working those few days in January
  • COLA Timing: FERS retirees who retire in January get their first COLA in January of the following year, while December retirees wait an extra year
  • Health Insurance: Your FEHB as an employee continues through the pay period, potentially saving on retiree premiums

Other Strategic Dates to Consider

  • End of a Pay Period: Simplifies final payroll and leave calculations
  • After Your Birthday: If it affects your retirement eligibility or annuity calculation
  • June 30 or December 31: For those who prefer mid-year or end-year transitions
Important Disclaimer: This calculator provides estimates based on general federal retirement rules. Your specific situation may vary based on agency policies, special provisions, or individual circumstances. Always consult with your HR department and consider speaking with a federal retirement specialist before making final decisions.