Start With a Timeline
Federal retirement involves several agencies, forms, and deadlines. Working backward from your target date makes the process manageable.
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Three to five years before
Request an estimate of your retirement benefits, confirm your service history, and review your TSP contributions and investments.
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One year before
Review your FEGLI and health benefits, update your beneficiary designations, and gather important documents.
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Six months before
Confirm your exact retirement date with your human resources office, and understand how your last paycheck, leave balance, and benefits will be handled.
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Retirement month
Submit your retirement application through the official process, and keep copies of everything you send and receive.
Important Documents to Gather
- Personnel records and a complete record of federal service, including dates and positions.
- Salary history for your high-3 average calculation.
- Military service records, if any service may count toward retirement.
- Beneficiary designation forms for retirement, life insurance, and the TSP.
- Marriage, divorce, or court orders that may affect survivor benefits.
- Social Security statements and earnings records.
- Health insurance and enrollment information.
Key Decisions to Think Through
- Whether to retire at your minimum retirement age, or wait for an unreduced annuity.
- Whether to elect survivor annuity coverage, and at what level.
- How you will use TSP withdrawal options.
- How you will cover health insurance costs in retirement.
- How your annuity, Social Security, and savings will fit together in your budget.
Next Steps
Each topic on this checklist has its own guide. Start with the FERS Guide or CSRS Guide depending on your coverage, then review the TSP Guide and FEGLI Guide. For official forms and estimates, use the OPM Retirement Services website.
How Applying Works
OPM processes retirement applications for most federal employees, working with your agency’s human resources and payroll offices. Applications are submitted through OPM’s online retirement application system, which requires you to create an account and verify your identity. Your human resources office will tell you what your agency must complete on its side. While OPM finalizes your case, it may issue interim payments, so keep your bank details and records ready and expect some time before the final amount is set.
Health Insurance in Retirement
To carry federal health benefits into retirement, you generally need to have been enrolled in a health plan for the five years before you retire (or from your first opportunity to enroll, if that was later). Missing this requirement can be costly, so review your enrollment history early, long before your target date. Also look at Medicare, which can interact with your plan once you turn 65.
A Simple Retirement Budget
A retirement date is easier to choose once you know how much income you will have. Make two lists:
- Income sources: your annuity (after survivor reductions and taxes), the FERS supplement if you qualify, Social Security (when it starts), TSP withdrawals, and any other income.
- Expenses: housing, health insurance and medical costs, food, transportation, taxes, insurance premiums, debts, and one-off costs such as travel or home repairs.
If income is short of expenses, consider a later retirement date, part-time work, or a different withdrawal plan, and discuss it with a qualified professional.
Questions for Your Household
Retirement affects the people who depend on you. Talk with your spouse or partner about survivor annuity choices, TSP beneficiaries, where you will live, and how you will cover healthcare. Married employees should know that spousal rights apply to survivor benefits and to many TSP choices, and that waiving them generally requires the spouse’s written consent.
A Twelve-Month Action Plan
- Months 12 to 10: Request an official estimate, review your service history, and open a folder for your records.
- Months 9 to 7: Review your health and life insurance enrollment history, and compare your income needs with your expected annuity, Social Security and TSP.
- Months 6 to 4: Confirm your retirement date with your human resources office, and discuss survivor annuity and beneficiary choices with your household.
- Months 3 to 1: Complete your retirement application and TSP decisions, and check that your direct deposit details are correct.
- After your last day: Keep copies of everything, watch for OPM correspondence, and review your first payments against your estimate.
Common Mistakes to Avoid
- Starting the paperwork in the final month instead of a year ahead.
- Not checking the five-year health insurance rule.
- Deciding on survivor coverage without a conversation at home.
- Forgetting to update beneficiaries on retirement, life insurance and TSP at the same time.
- Relying on one person’s memory about where records are stored.
Frequently Asked Questions
When should I start planning?
Ideally three to five years ahead to get an estimate and review your records, and in earnest one year ahead for forms and decisions.
Who do I talk to first?
Your agency’s human resources office, which can confirm your service history, retirement coverage and the steps your agency handles.
Can I change my mind after retiring?
Some elections, such as survivor coverage, are difficult or impossible to change later. Confirm which choices are permanent before you finalize them.
Do I need a financial professional?
Not necessarily, but a qualified professional can help you with taxes, investments and income planning. Choose someone whose fees and credentials you can verify.