If you’re retiring from working for the federal government, you may be wondering when you’ll receive your first check.
The answer will depend on when your claim is received by the United States Office of Personnel Management.
Government Executive reported a retirement claim can be processed and finalized as soon as five or six weeks from when it is received, but that’s if you’re lucky. Otherwise, it’s likely to be four to six months before processing. It can take longer in some cases.
As you wait for your retirement check, it’s important to have cash on hand. Because the period between receiving your final paycheck and your first full retirement check can vary.
While some people may opt to retire over the summer between school sessions, it’s also common for people to do so at the end of the year.
According to one expert, that can be a good thing.
Jason Silverberg, vice president of financial planning at Financial Advantage Associates in Rockville, Maryland, told GOBankingRates why retiring at the very end of the year or the very beginning of the year can be beneficial.
“This way, you’re not pulling a lot of money out of your retirement accounts during a year where you might be in a higher tax bracket with earned income,” he said.
Silverberg recommends having enough cash to cover three to five years of retirement expenses. He also says future retirees should be aware of their age before withdrawing money from retirement accounts.
“If you turn 59 1/2 years old at any point during [the year you’re planning to retire], then wait to take money from your retirement accounts until that time,” said Silverberg. “You will avoid a 10% early withdrawal penalty.”
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