The Office of Personnel Management (OPM) recently announced a surge in retirement applications this year. Over 70,000 Feds have already filed to retire in 2025, with large spikes in May, June, and August. This equates to a nearly 40% increase from 2024.
This has led to a significant OPM retirement backlog in 2025. As a result, many Feds are seeing longer processing times. At Serving Those Who Serve, we’ve heard firsthand from Feds who are experiencing major delays in responses to benefit questions, and sometimes, even radio silence. Discussions of benefit cuts and tax changes further complicate matters for those considering exit strategies.
This can be frustrating, whether you’re near retirement or simply trying to keep your plan up to date. If you have questions or are trying to navigate the retirement system right now, our team of Fed-focused advisors can provide you with personalized, CFP™-level guidance.
What’s Driving the Rush to Retire?
It’s no surprise so many Feds are choosing 2025 to exit their careers. The threat of benefit cuts or reforms has some deciding they would rather lock in their benefits now, rather than risk less favorable rules later.
Programs like the now-closed Fork in the Road also encouraged a wave of 2025 retirements. In addition, a large cohort of Feds reached eligibility age over the past few years and are now stepping away at the same time. This combination of factors has put an unusual amount of stress on OPM’s retirement process.
Consider the Impact on Your Timing
In August 2025, OPM reported an average 70-day processing time for retirement claims. Complicated cases or submissions with missing items could take even longer. While the guidance has typically been to submit paperwork 90 days prior to retirement, it may make sense to start even earlier.
Steps to Help You Prepare
If you’re planning to retire in the next year or two, these federal retirement planning tips can help you stay ahead of delays and avoid surprises.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
Get Organized Early
Gather your SF-50s, service history records, and insurance forms before filing. Missing documents are one of the biggest reasons for OPM delays.
Max Out Your Savings Opportunities
If you can, increase contributions to your Thrift Savings Plan (TSP). Depending on your tax situation, you may also want to look at IRAs or Roth IRAs to add even more flexibility to your retirement income.
As a reminder, if you are age 50 or older, you can contribute the regular $23,500 maximum contribution to your TSP, as well as an additional $7,500 catch-up contribution. Further, if you are between the ages of 60 and 63 during the 2025 calendar year, that catch-up contribution amount is increased to $11,250, thanks to the SECURE Act 2.0.
Have a Plan
A comprehensive financial plan can offer you a look into the future to help understand what your retirement may look like, based on the decisions you’re making now. If you’re considering retiring prior to age 62 and you do not have a comprehensive financial plan in place illustrating how you can thrive in retirement, your first step should be obtaining one. Not every person needs a financial planner, but everyone needs a plan.
Stay Informed
Keep an eye on policy debates that could affect your benefits. Even if changes don’t go into effect right away, knowing what’s on the table may help you make smarter timing decisions.
Work With an Advisor
Every Fed’s situation is different. A CERTIFIED FINANCIAL PLANNER™ who understands federal benefits can help you weigh your options and potentially avoid costly mistakes.
Plan Your Retirement With Confidence
If you’re getting ready to retire, the OPM backlog in 2025 may certainly cause some frustration. Keep your plans on track by filing early, staying organized, and working with a professional. If you need assistance with an upcoming transition or want to discuss how these changes may impact your plan, reach out to the team at Serving Those Who Serve at [email protected].
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
