Federal Retirement Checklist: 13 Important Things to Do Before You Retire

Retiring from federal service is one of the biggest financial decisions you'll make. Before you submit your retirement paperwork, it's important to review your benefits, estimate your income, and make sure you've met the eligibility requirements for retirement.

This federal retirement checklist walks you through the most important steps to take before you retire under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS).

Federal Retirement Checklist at a Glance

Before you retire, make sure you:

• • Confirm you're eligible to retire.
  • Estimate your FERS or CSRS pension.
  • Review your Thrift Savings Plan (TSP).
  • Decide when to claim Social Security.
  • Understand your FEHB health insurance options.
  • Review your FEGLI life insurance.
  • Update beneficiary designations.
  • Check your unused annual and sick leave balances.
  • Decide whether to elect a survivor annuity.
  • Estimate your retirement income.
  • Review your taxes in retirement.
  • Pay off high-interest debt if possible.
  • Gather required retirement documents.
  • Meet with your agency's Human Resources office.
  • Submit your retirement application on time.

1. Are You Eligible to Retire?

Before making retirement plans, confirm that you meet the age and service requirements for your retirement system.

Most federal employees retire under FERS, which generally allows retirement based on combinations of age and years of creditable service. If you're unsure about your eligibility, review your service history with your agency before selecting a retirement date.

Why it matters: Retiring too early could reduce your benefits or delay your eligibility for certain retirement options.

2. Estimate Your Pension

Your pension is one of the primary sources of retirement income.

Calculate:

• Your years of creditable service
• Your High-3 average salary
• Your estimated monthly annuity
• Any reductions that may apply

Knowing your estimated pension helps you determine whether your retirement income will meet your financial needs.

3. Review Your TSP

Your Thrift Savings Plan (TSP) is likely one of your largest retirement assets.

Consider:

• Your investment allocation
• Withdrawal strategy
• Required Minimum Distribution (RMD) rules
• Whether you'll leave your money in the TSP or transfer it into another retirement account

Many retirees benefit from creating a withdrawal plan before they retire rather than making decisions after leaving federal service.

4. Decide When to Claim Social Security

The age you begin receiving Social Security benefits can affect your monthly income for the rest of your life.

Factors to consider include:

• Your health
• Other retirement income
• Whether you're married
• Survivor benefits
• Your expected retirement expenses

Claiming earlier generally results in smaller monthly payments, while delaying benefits may increase your monthly amount.

5. Will You Keep FEHB in Retirement?

One of the most valuable federal retirement benefits is the opportunity to continue Federal Employees Health Benefits (FEHB) coverage into retirement if you meet the eligibility requirements.

Before retiring:

• Verify your eligibility.
• Compare available health plans.
• Estimate future premiums.
• Consider how Medicare may fit into your retirement healthcare strategy.

6. Review Your FEGLI Life Insurance

Many federal employees forget to review their life insurance before retirement.

Ask yourself:

• Do I still need the same amount of coverage?
• Should I choose the 75%, 50%, or No Reduction option? (Basic and Option A)
• Would private life insurance better meet my needs? (for Option B)
• Have I updated my beneficiaries?

Reviewing your coverage before retirement can help prevent unexpected costs later.

7. Update Your Beneficiaries

Review every beneficiary designation for:

• FEGLI
• TSP
• Retirement benefits
• Unpaid compensation

Life events such as marriage, divorce, or the birth of a child may affect your choices.

8. Review Your Leave Balances

Unused leave can affect your retirement benefits.

Before retiring:

• Verify your annual leave balance.
• Understand how unused sick leave is credited toward your retirement calculation.
• Plan your retirement date to maximize your leave benefits when appropriate.

9. Decide Whether to Elect a Survivor Annuity

If you're married, you'll generally need to decide whether to provide a survivor annuity for your spouse.

A survivor annuity can:

• Continue income to your spouse after your death
• Help preserve eligibility for certain retiree benefits, including continued FEHB coverage in many situations

Because this decision affects both your monthly annuity and your spouse's future financial security, it's worth discussing together before you retire.

10. Estimate Your Retirement Budget

Your expenses may change after retirement.

Estimate:

• Housing
• Healthcare
• Insurance
• Taxes
• Travel
• Daily living expenses
• Emergency savings

Creating a retirement budget can help you determine whether your expected income will cover your anticipated expenses.

11. Understand Taxes in Retirement

Federal retirees may owe taxes on:

• Pension income
• Traditional TSP withdrawals
• Social Security benefits, depending on total income

Planning for taxes ahead of time can help you avoid surprises after retirement.

12. Gather Your Retirement Documents

Before submitting your application, organize important records, including:

• Birth certificate
• Marriage certificate (if applicable)
• Military service records (if applicable)
• Beneficiary forms
• Leave records
• Retirement estimates
• Social Security information
• Download a copy of your E-OPF (electronic file(s))…requires employee to logon to the system

Having these documents ready can help streamline the retirement process.

13. Meet With Your Human Resources Office

Schedule a retirement counseling session with your agency's Human Resources office.

Your HR specialist can help you:

• Review your retirement eligibility
• Explain available benefits
• Complete required forms
• Identify any missing documentation
• HR will provide a Summary of Government Service document – 1 page report.

Meeting with HR well before your planned retirement date can reduce delays and give you time to resolve any issues. (usually, 60-90 prior to retirement)

Frequently Asked Questions

When should I start planning for federal retirement?

Many financial professionals recommend beginning five to ten years before your planned retirement date. Starting early gives you time to increase savings, review benefits, and make informed decisions.

Can I keep my federal health insurance after retirement?

In many cases, yes. If you meet the eligibility requirements, you may continue FEHB coverage into retirement.

What happens to my unused sick leave?

Unused sick leave is generally converted into additional creditable service for calculating your FERS or CSRS annuity. It cannot be paid out as a lump-sum cash payment.

Will I receive a payout for unused annual leave?

Generally, yes. Eligible employees typically receive a lump-sum payment for accumulated annual leave when they separate from federal service.

Should I retire at the end of the month?

Many employees choose retirement dates that align with the end of a pay period or month, but the best date depends on your agency, leave balances, pension timing, and personal financial goals.

To learn more, connect with one of our network advisors today, or join one of our FREE Federal Benefit Workshops.