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Want to retire at the end of 2026? Start planning now
OPM is still working through a sizable retirement backlog, and year-end retirees have plenty to sort out before they leave federal service.
If you're planning to retire at the end of 2026, it's time to get busy preparing. End-of-year retirements are popular, especially for federal employees who are saving annual leave for a large lump-sum payout in 2027.
The Office of Personnel Management continues to process a historically high volume of retirement claims, and while digital submissions are improving processing efficiency, overall claim inventories are still above target levels. This is why early preparation helps during the transition from employee to annuitant.
Employees can reduce potential delays by confirming service records, reviewing benefit elections, preparing financially for the transition period and submitting retirement paperwork early through their agency's recommended process.
Some recent retirement processing numbers:
In July 2026, OPM processed 14,370 digital claims and 3,471 paper application packages. By comparison, in January 2026, OPM processed 6,465 digital applications and 9,106 paper applications.
The 2025 Deferred Resignation Program contributed to the 2026 surge. Large numbers of employees left federal service under the DRP, creating delays for payroll providers and human resources offices responsible for initial retirement processing.
As of the end of July 2026, OPM still had 24,784 claims awaiting adjudication, above its goal of 13,000 or fewer pending claims. Although the inventory has improved from a high of 65,237 claims in February 2026, processing times remain a key consideration for employees planning a year-end retirement.
Checklist to get ready
1. Build a cash reserve for the transition.
Your final paycheck should arrive within a few weeks of retirement, and your lump-sum annual leave payment usually follows soon after. However, timing can vary.
Interim retirement payments may begin within 6 to 8 weeks, while final adjudication may take several months. In July 2026, digital claims averaged about 98 days from receipt at OPM, while paper claims averaged 156 days.
It is not clear whether those are 22-day work months or 30-day calendar months, but either way, these are only "averages."
2. Confirm that your records and paperwork are complete.
Verify that your federal service is fully documented in your eOPF, including appointment dates, work schedule changes and retirement coverage changes.
Keep copies of key records in your personal personnel file.
Confirm whether any military service credit deposits are complete.
Verify that all service is creditable for retirement eligibility and computation before setting your retirement date.
3. Update beneficiary designations for CSRS or FERS, TSP and FEGLI.
4. Review survivor benefit elections.
If applicable, consider spousal survivor benefit options before submitting your retirement application.
5. Confirm FEHB eligibility.
Remember, you must be "covered" by FEHB (or PSHB) for the five years immediately preceding your retirement date. You also must be retiring with immediate retirement eligibility.
6. Determine whether a former spouse is entitled to benefits.
If applicable, review your divorce decree or court order. Include a copy with your retirement application if benefits are payable to a former spouse.
7. Review life insurance needs.
Consider your FEGLI coverage and review the Continuation of Life Insurance form, SF 2818
Additional information is available from OPM's life insurance resources
8. Give sufficient notice and begin the application early.
OPM advises employees to contact their employing agency about recommended submission timeframes. Agencies generally need at least 60 days to process a retirement application before sending it to OPM, but some agencies may require more time.
9. Final retirement estimate
Do you understand the numbers on this estimate? If not, ask questions to be sure.
This is an "estimate." OPM is responsible for the final numbers. Be sure to receive a final retirement estimate and be sure that you understand and agree with the dates and numbers.
10. Understand the difference between paper and digital applications.
Paper applications: Employees complete the Application for Immediate Retirement, SF 3107 for FERS or SF 2801 for CSRS. HR reviews the application, completes the Certified Summary of Federal Service, which you will need to sign and return, and submits the package through payroll to OPM.
Digital applications: When an employee notifies HR of a retirement date, HR sends an invitation to access the Online Retirement Application system. HR and payroll review and complete their portions before electronically releasing the application to OPM.