The 18-month federal retirement countdown checklist
Federal retirement isn’t a single decision — it’s a sequence of them, spread across many agencies, with deadlines that don’t move and elections you can’t easily undo. The people who retire smoothly aren’t lucky; they started early and worked a checklist. Eighteen months is the sweet spot: enough time to verify your service, complete a military deposit while the interest is small, model your survivor and TSP elections without panic, and — critically in 2026 — build the cash cushion you’ll need while OPM processes your case. This guide walks the countdown phase by phase, flags the traps, and gives you a live checklist you can work right on the page.
1. Why 18 months
You can technically retire with a few months’ notice. You shouldn’t. The decisions that set your income for the rest of your life — your high-3, your survivor election, your TSP withdrawal plan, your Social Security timing — deserve to be made deliberately, not under deadline pressure. And some moves, like a military service buyback, get more expensive the longer you wait because interest accrues.
There’s also a hard practical reason rooted in 2026 reality: OPM doesn’t pay your full annuity right away. While your case is processed, you live on interim payments of roughly 60–80% — for two to six months, sometimes longer. Eighteen months gives you time to build the cash cushion that makes that gap a non-event instead of a crisis.
2. 18–12 months: verify
The opening phase is about confirming what you have, before you build plans on top of it:
- Verify your Service Computation Date and creditable service. Errors here ripple through everything. Request a service history and check it against your SF-50s.
- Check the FEHB five-year rule. You generally must be enrolled the five years before retiring to carry FEHB. If you’re short, you may still have time to fix it — but only if you catch it now.
- Get an annuity estimate. Run OPM’s calculators or request an agency estimate so you know your pension ballpark.
- Pick a target date. The December-vs-January decision and end-of-pay-period timing affect your leave payout and first annuity check.
3. 12–9 months: the big elections
With your numbers verified, this phase is about modeling the choices that shape your retirement income. Run your survivor annuity scenarios with your spouse — how much of your pension continues to them, and at what cost to your monthly check. Map your Social Security claiming age and, if you’re FERS retiring before 62, whether the FERS annuity supplement applies.
This is also the time to decide your TSP strategy — installments, an annuity, a rollover, or a mix — and to build a real retirement budget so you can see your income against your expenses. The point of doing this at 9–12 months is that nothing here is reversible on a whim, and you want room to change your mind before anything is filed.
4. 9–6 months: deposits & survivor
Now you execute the irreversible groundwork. Complete any military service deposit or civilian redeposit if you haven’t — the interest only grows, so finishing now is cheaper than finishing later. Lock in your survivor annuity decision (with the required spousal consent if you elect less than the maximum), and review your unused sick leave and annual leave projections, since both affect your numbers.
If you haven’t already, begin building 3–6 months of living expenses in cash now. In the current OPM environment this isn’t optional — it’s what carries you through the interim-pay months without touching investments at a bad time.
5. Your countdown tracker
Here’s the checklist as a working tool. Check off each task as you finish it and watch your progress fill. It resets when you reload — use it as a session worksheet or a printable map of what’s left.
6. 6–3 months: apply
This is the paperwork phase. Most agencies want your retirement application package 60–90 days before your date, so schedule your HR retirement counseling session and submit on time. Finalize your TSP withdrawal elections, and — this one is easy to forget — update every beneficiary designation: TSP, FEGLI, and any unpaid compensation.
Confirm your FEGLI choices for retirement (which options to keep, and the reductions that apply), and if you’ll be 65 near your date, plan your Medicare enrollment to avoid a lifelong Part B penalty. Keep copies of everything you submit.
7. The final stretch
In the last three months to your final day, the work shifts to confirmation and logistics. Verify your agency actually forwarded your package to OPM — gaps here are a common cause of delay. Plan how you’ll use or cash out annual leave: the lump-sum payout arrives one to two pay periods after you separate and is taxed at a flat 20% federal rate, so set aside roughly a quarter to a third for taxes.
Set up direct deposit for your annuity, and understand that during interim pay you may be billed directly for FEHB premiums (through BENEFEDS) since no deductions come out of interim checks. Then walk out, turn in the badge, and let the plan you built carry you.
8. After you retire
The first months are a waiting game you’ve already prepared for. Expect interim payments at 60–80% to begin within about a month of OPM receiving your case, with only federal income tax withheld — no FEHB, FEGLI, dental, vision, or state tax. Your annual leave lump sum lands within a pay period or two; your TSP won’t be accessible immediately, since your agency takes weeks to report your separation.
When OPM finalizes your case, you’ll get your CSA claim number, your full annuity, and a retroactive lump sum covering every month you were underpaid. File for Social Security and the FERS supplement if applicable, adjust your tax withholding, and confirm you’re genuinely ready for the year ahead. If your case stalls past six months, OPM’s Retirement Information Center (1-888-767-6738) and your congressional office’s casework team can help.
9. Frequently asked questions
When should I start preparing to retire from federal service?
Begin the focused countdown about 18 months out, with some groundwork — maximizing TSP, verifying your Service Computation Date, and protecting FEHB continuity — started years earlier. Eighteen months gives you time to verify your creditable service, complete any military deposit or redeposit while the interest is smaller, run survivor and TSP election scenarios without pressure, and build the cash cushion you’ll need during OPM’s processing gap. Most agencies want the formal application 60 to 90 days before your date, but the decisions feeding that application take far longer to get right, which is why the runway matters.
How long does OPM take to process a federal retirement?
It varies widely with case complexity and OPM’s backlog. In 2026 the backlog has been large but improving — falling below roughly 40,000 cases by mid-year — and most retirees should plan for two to six months of interim payments, with genuinely complex cases (military buyback, court orders, survivor elections) running longer. During that window OPM issues interim payments of about 60 to 80 percent of your estimated net annuity, then pays the full difference retroactively once your case is finalized. The single best protection is cash: have three to six months of expenses set aside before you walk out.
What is the FEHB five-year rule and when do I check it?
To carry your Federal Employees Health Benefits coverage into retirement, you generally must have been enrolled in FEHB for the five years immediately before you retire (or since your first opportunity to enroll). This is one of the first things to verify in an 18-month countdown, because if you’re short, you may still have time to fix your enrollment before the window closes — and getting it wrong is costly, since you can permanently lose one of the best benefits federal retirees have. Confirm your enrollment history early rather than discovering a gap at the finish line.
What happens to my income right after I retire?
Expect a gap before your full annuity arrives. OPM pays interim annuity payments — roughly 60 to 80 percent of your estimated net annuity — usually starting within about a month of receiving your application, and only federal income tax is withheld during that time; no FEHB, FEGLI, dental, vision, or state-tax deductions come out, and you may be billed directly for FEHB premiums. Your lump-sum payout for unused annual leave typically arrives within one to two pay periods and is taxed at a flat 20 percent federal rate. TSP withdrawals aren’t immediate either, since your agency takes weeks to notify the TSP of your separation.
What documents should I keep for my retirement?
Keep copies of everything OPM might need to verify your case: your final SF-50, your completed retirement application, your final leave-and-earnings statement, any military service buyback documentation, marriage certificates and divorce decrees, any court orders affecting your annuity or survivor benefits, and all correspondence with OPM. Having these organized speeds adjudication and gives you proof if anything is questioned. It also helps to note OPM’s Retirement Information Center number, 1-888-767-6738, and to remember that a congressional office can sometimes assist if your case stalls beyond six months.