Planning your retirement will involve multiple variables, far beyond simply being financially ready. Aside from accumulating enough years of service, and stashing enough money in your Thrift Savings Plan, you also want to schedule your retirement at the right time.
Of course, since retirement planning tends to focus on finances, most of you don’t want to go very long between your last paycheck and your first annuity payment. That’s understandable. So for federal employees who are trying to decide upon their eventual retirement dates, it can help to understand how and when annuity payments begin under the FERS system.
Your annuity begins on the first day of the month after the month in which you retire. Then, your first actual annuity payment begins on the month after that. So, for example, if your last day of service is scheduled for March 5, your annuity begins on April 1 and you will receive your first annuity payment on May 1.
For some of you, that might equal too much of a gap between your last paycheck and your first annuity payment. That’s why many FERS employees schedule their last day of work toward the end of the month, when possible. That way, you will have one more paycheck on the way, and your annuity payments will begin shortly after that.
Of course, there is more than just annuity payments to consider when timing your last day of work. As you continue to plan for retirement, stay in touch with us. We can help you juggle all of the different issues you might face, so that you can make a retirement plan that best suits your individual situation.
