What day is the best day to retire?

The best day to retire often depends on your employer (especially for US federal jobs), but generally, retiring at the end of a month or pay period is ideal to avoid gaps in pay, maximize leave payouts (like Dec 31st for feds), and align your first pension check with the start of the next month, but the "best" day is personal, balancing eligibility, taxes, and financial goals with an advisor.

What is the best day to retire?

Do you have a pension? If you work for the government or an employer that offers a defined benefit pension plan, it might be smart to retire on the day that follows the anniversary of your first day working there. This way, you'll receive an extra year-of-service credit toward the calculation of your pension benefits.

Is it better to retire on the last day of the month or the first day of the month?

To make the most of your accrued leave and minimize this gap, it would be most strategic to retire at the end of a pay period, if possible. Even better, choosing a pay period that ends towards the back half of the month to both maximize your accrued leave and reduce the gap before FERS annuity payments begin.

Is it better to retire in January or December?

Retiring in December maximizes your final year's 401(k) contributions and employer match, while retiring in January can lower your first year's taxable income (due to fewer working days) for potential tax benefits like Roth IRA conversions and avoids early Required Minimum Distributions (RMDs) if you're turning 73, making January often better for overall tax strategy, though December is great for getting that last paycheck/leave payout in the prior year. The best choice hinges on your specific pension rules, tax bracket, bonuses, and desired Social Security start date, so check with your HR/benefits department. 

Is it better to retire on birthday or end of year?

But the increase in payments stops once you reach age 70, so if you turn 70 in the year you retire, you should wait until after your birthday to start receiving benefits. That helps reduce your taxes for that year and maximizes your payment, too.

The BEST Days to Retire as a Federal Employee

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

What is the happiest age to retire?

While about a third say the ideal age is between 60 and 64 (36%), substantial shares think it's best to retire between 65 and 69 (21%) and at 70 or older (22%).

What is the number one mistake retirees make?

The top ten financial mistakes most people make after retirement are:

• 1) Not Changing Lifestyle After Retirement. ...
• 2) Failing to Move to More Conservative Investments. ...
• 3) Applying for Social Security Too Early. ...
• 4) Spending Too Much Money Too Soon. ...
• 5) Failure To Be Aware Of Frauds and Scams. ...
• 6) Cashing Out Pension Too Soon.

What is the 3 rule for retirement?

The "3% Rule" for retirement is a conservative withdrawal guideline suggesting you take out no more than 3% of your initial retirement savings in the first year, then adjust for inflation annually, aiming to make your money last longer than the traditional 4% rule, especially useful for early retirees or those wanting extra safety from market downturns and inflation. Another "rule of thirds" strategy suggests dividing savings into three parts: one-third for guaranteed income (like an annuity), one-third for growth, and one-third for flexibility. 

Is $5000 a month a good retirement income?

Yes, $5,000 a month ($60,000/year) is often considered a good, even comfortable, retirement income for many Americans, aligning with average spending and covering basic needs plus some extras in most areas, but it depends heavily on location (high-cost vs. low-cost), lifestyle, and if your mortgage is paid off; it provides a solid base but needs careful budgeting and supplementation with Social Security and savings, say experts at Investopedia and CBS News, Investopedia and CBS News, US News Money, SmartAsset, Towerpoint Wealth. 

How many Americans have $500,000 in retirement savings?

Only a small percentage of Americans have $500,000 or more in retirement savings, with recent data (late 2025/early 2026) suggesting around 7% to 9% of households have reached this milestone, though this varies by source and can be skewed by high-income earners or home equity. For instance, one study showed only 4% of all households had $500k-$999k, and 3.1% had $1M+. 

Do you retire on your birthday or the day before?

Normal pension age (NPA)

NPA is the age at which you can take your pension in full without reduction. If you take your pension at your NPA, your last day of service is the day before that date. Your benefits are paid from your birthday.

Is it better to apply for Social Security in December or January?

Starting Social Security in January is generally better than December because you'll receive an extra month of benefits and potentially benefit from the new year's Cost-of-Living Adjustment (COLA), plus it allows you to capture more Delayed Retirement Credits (DRCs) if you're waiting past Full Retirement Age (FRA). Waiting until January locks in a full month of credit and ensures you get the latest COLA before potentially working into the new year, maximizing your benefit, notes MassMutual and Rand Financial Planning. 

Does it matter what day of the month I retire?

Waiting to retire at the end of the month could be a good idea if you want to get your full pay for that period. This can also eliminate gaps in pay, depending on when you plan to begin drawing retirement benefits from a workplace plan.

Why is 2025 the best year to retire?

Your State Pension and Your Retirement

In the UK, the State Pension has risen in the past few years thanks to the previous government's Triple Lock. This increases the State Pension amount in line with the highest wages, inflation, or 2.5%, with 2025 being the year of the wages, which is the highest of the three.

What is the best day to retire from the federal government in 2026?

The best days to retire from the federal government in 2026 are often January 10, May 31, October 31, and December 31, with January 10, 2026, maximizing your annual leave payout and December 31 offering a clean year-end break, while ending the month ensures your pension starts promptly. Your ideal date depends on maximizing leave payout versus a smooth start to retirement; January 10 is great for a large lump sum, while May 31 or October 31 allow for immediate summer/fall retirement, and December 31 offers a clean calendar year end. 

How many retirees have $1 million in savings?

Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.

What is the $240,000 rule?

The $1,000-a-month rule says you'll need $240,000 in savings for every $1,000 monthly retirement income you want. This rule uses a 5% annual withdrawal rate and assumes your savings stay invested to grow with inflation.

Can I retire at 62 with $400,000 in 401k?

You can retire at 62 with $400k if you can live off $30,200 annually, not including Social Security Benefits, which you are eligible for now or later.

What is the biggest retirement regret?

Retirement Regrets: Top 15 Things Retirees Wish They Had Done Differently

• Plan More Carefully for the Fun You Want to Have in Retirement. ...
• Not Saving Enough. ...
• Not Retiring Earlier. ...
• Not Planning Adequately for Healthcare. ...
• Staying Uninformed About Personal Finance. ...
• Invest Too Conservatively — or Too Aggressively.

How much money do most retirees have?

Key Takeaways

Only 3.2% of retirees have $1 million in retirement accounts vs. about 2.6% of Americans in general. The average retirement savings for households aged 65-74 is $609,000, while the median is only about $200,000.

What is the first choice of most retirees?

Senior Citizens Saving Scheme- It is the most preferred choice of most retirees. This scheme is applicable to senior citizens and early retirees. Anyone above the age of 60 can avail of this scheme from a bank or a post office.

What is a good monthly retirement income?

A good monthly retirement income is often cited as 70% to 80% of your pre-retirement income, but it varies greatly by lifestyle, location, and expenses, with many needing $4,000 to $8,000+ monthly, depending on if they seek a modest, comfortable, or affluent retirement, while accounting for inflation and unique costs like healthcare. 

What are the biggest retirement mistakes?

The biggest retirement mistakes involve poor planning (starting late, underestimating costs like healthcare/inflation, not having a budget) and bad financial decisions (claiming Social Security too early, taking big investment risks or being too conservative, cashing out accounts, having too much debt). Many also neglect the non-financial aspects, like adjusting lifestyle or planning for longevity, leading to running out of money or feeling unfulfilled. 

Do early retired people live longer?

The connection between retirement age and longevity shows that retiring later often increases life expectancy due to the cognitive, physical, and social benefits of continued work. Early retirement may reduce these engagements, potentially impacting health negatively.