How did You Pick the Final Date?

[MBAustin]

I decided in mid-summer 2010 that we were enough past FI and major expenses (buying and remodeling retirement house/selling previous house, buying new car, college funds set aside, etc.) that I could RE. Logically, I would have waited until May, 2011 - I had 6-figures of deferred compensation that I had to take in cash (fully taxable) within 30 days of leaving, also some stock options with same terms, and I gave up the mid-5 figure bonus I would have received in May (although it was earned by March 31, you had to be on payroll on the payout date to get it).

But my job was being moved across the country, and although I was assured by my VP that I'd be placed in another role, I was fed up with senior management and wave after wave of layoffs. So I noted that the under-62 surcharge on my retiree health insurance would reduce by 5% if I stayed past my birthday, and I'd get health insurance for the month if I left on the 1st, so October 1, 2010 (conveniently a Friday) was my last day. It felt so good to be out of there that I didn't even mind (much) writing the big check to pay the taxes.

 

[Chuckanut]

As a teacher I ended up with my last working day in June (albeit a few extra days over the contracted end to clean up the classroom and hand-off materials to my replacement)

But, the big question was should I end the contract early (June 30) and start my pension on July 1, or let the contract run through its natural end (August 31) before starting my pension.

By starting the pension July 1, I get a cost of living adjustment the next year. Otherwise I have to wait almost two years for the first COLA. But, I also give up two months of paid medical insurance, and my service years used to calculate the pension end up being 1/6 of year less so I end up with a slightly smaller pension to start with.

It's kind of like when to start SS. In the short run as soon as possible, but if one lives long enough then delay the start.

I ended up keeping my contract intact until its natural end on August 31, and started the pension on September 1. At about 72 I should break even. After that it's all gravy!! I figured the gravy will buy me a pizza and a descent craft brew every month to start with. Maybe a nice dinner in another 10 years.

So, I officially retired as of September 1. When I hit 72 you can join me for a brew and slice of the pizza.

 

[Looking4Ward]

My decision as to the final date was actually a tactical decision rather than a strategic one.

I had already reached the financial goal I had set for myself upon age 55, so waiting until my 55th birthday was optional.

I decided that calculation of my final date was the next time leadership danced around one of the chronic issues facing the company plus two month's notice. I didn't have to wait very long for an example to manifest itself one afternoon.

Composed my resignation letter, emailed my wife, and presented it to the CEO.

 

[Amethyst]

I'm finding these stories very interesting. Everyone has had so many different things to consider.

For me, as a govvie, it was always sort of cut-and-dried. Our Agency likes to ensure we are educated about retirement options. When I'd been there 15 years, I got to attend a 2-day seminar for "mid-career" employees, where one of the themes was that we needed to invest, and not merely depend on our pensions.

Toward the end of my career, I went to seminars to learn more about health benefits, Medicare, taxes, and other things. I read everything I could find on Federal retirement and contrived various spreadsheets to try to account for it all.

And yet, there were still things to consider about the "final day." I knew I wanted to retire at the end of the year following a particular birthday. HR provided a calculator and I had a retirement adviser, so I knew exactly how much my pension and annual leave payout would be.

But, would I be better off retiring on December 31st, or Jan 4th? The earlier date would mean earlier freedom, and a full first month of pension benefits. The later date would reduce my first month's pension a bit, but give me 4 days of pay...plus holiday premium pay for Jan 1st, because I was retiring from a shiftwork job. Plus...and this was important...I could contribute those 4 days of pay, and premium pay, to the Thrift Savings Plan; the last TSP contribution I would ever make. And, since the 4th was the end of a pay period, I could contribute the last week of December's pay to TSP as well. It was a substantial amount of money to shelter. Ding ding ding! I had my day.

 

[pacergal]

I qualified for full, cola'd pension 6 years ago, however, working to a certain age gives me the benefit of significantly reduced retiree health insurance cost , hence November 2016 is my date.

 

[foxfirev5]

I'm gone April 29th. One day before I turn 60. At least I'll be able to say I retired in my 50's.

 

[Walt34]

One of the motivations for me was the realization that the new contract the union had negotiated was much, much, better than in previous years. Bear in mind that when I started there was no union. We didn't want or need one, but the employer was penny wise and pound foolish regarding raises during the inflation years of the '70's and '80's. That led to the formation of the union which in the long run cost them far more than decent raises would have.

Anyway, I realized that if I retired I could sell T shirts out of the back of a van and still make more money than if I kept working. In reality when I retired my net pay went up slightly although the gross was lower. I had been maxed out on the 457, after retirement not paying into the retirement system and SS, and a few other items.

And I wouldn't have to deal with the bureaucracy getting training, software and equipment, and the DC traffic after we moved. That was very attractive too. Last day was June 30 2002 and we moved into the the WV house Sept. 12, 2002.

 

[Taxman59]

I was debating between 12/31/14 and 7/1/15. I liked the thought of NOT w*rking another tax season (34 was enough for me), but 7/1 was a vesting date doe a deferred comp plan. I also wanted to give the company time to find a replacement so I gave notice early for the July 1 date. As it turned out, they didn't really get serious about hiring a replacement until May ("you're going to change your mind aren't you?") so I probably should have waited until April 1 to give notice.

 

[dtbach]

I got called into the office and was told that the company was downsizing and I was part of that. At least they gave me a good parting package.

 

[Fedup]

The minute I'm qualify for a pension, which is five years, plus my badge was expiring in Dec and I was too lazy to renew it, the last workday before I went on 2 weeks vacation in Hawaii.


Sent from my iPad using Early Retirement Forum

 

[ABQ2015]

My final date will be the end of the pay period after I turn 62 in Fall of 2017. Fall is chile season and the best season of the year - I'll need the extra time to peel and freeze my green chile. Waiting until 62 will bump up my pension another 3% of high three year salary. I also got a big raise in 2015 so want that reflected in my high three. And performance appraisal self assessments are due at the end of the month so I'm hoping to get out of writing one but it will mean missing out on that big $600 bonus in November.

 

[hnzw_rui]

I probably should have waited until April 1 to give notice.

April Fools?

Alas, my target date is still far, far away. I've had a number of co-workers retiring though so I've learned some tricks from them.

I'll be eligible for full pension Q4 2039 but I'm aiming tentatively for Q1-Q2 2040. Banked sick and vacation time can't be used to increase service credit/pension. We just get paid cash for those and if I retire in Q4, most of it will just go to taxes not to mention push me into a higher tax bracket. By delaying, I get another year's worth of retirement contributions and can have the banked sick and vacation pay directed towards the 457. Also, quite a number of paid holidays in Q4.

 

[ziggy29]

Well, I was more or less FI when I was laid off from my IT career in April 2013. So Megacorp picked it for me, and I intended to remain almost completely retired. That said, I'm working again, maybe 20-25 hours a week, in an accidental second career which started out as just 3 hours a week on Saturday mornings. Still it provides retirement benefits and full FEHB medical coverage in a part-time job, so it's a nice transition between full-stop permanent FIRE and the full-time working world.

 

[akck]

My original retirement date was May 1, 2014 about 2 years before. We get to count 2014 as one of our high years for our pension if we stay that long. A short time later, my boss retired and I decided to apply for the position, which would have delayed my timeframe another 3 years (2017). While I really didn't want the job, I didn't want some idiot getting it. Well, they gave the job to some idiot, so I was back to May 1, 2014. After 6 months under the idiot, I changed the last day of work to December 31, 2013, but also contemplated retiring as early as July 1, 2013 if the BS bucket overflowed, figuring I'd be on a month-to-month basis until December. The real kicker was they were giving me the idiot's duties, so I'd get the workload but not the position. For the most part, I was able to wade through it all and the last day of 2013 was my last day of work.

During my exit interview, I stated that the idiot wouldn't last a year after I left, as there was no way he could handle the year-end audit. He was true to form and was asked to resign the following December.

 

[pb4uski]

One of the motivations for me was the realization that the new contract the union had negotiated was much, much, better than in previous years. Bear in mind that when I started there was no union. We didn't want or need one, but the employer was penny wise and pound foolish regarding raises during the inflation years of the '70's and '80's. That led to the formation of the union which in the long run cost them far more than decent raises would have. .....

One of my first clients in the late 70s had a good sized workforce but treated their employees quite fairly... so much so that union organizers could not get any traction.

 

[VFK57]

I planned to retire at age 58 - 59 but falling from a ladder for a second time within my last 3 month of work, changed my plans. On my doctor advise to stop doing HVAC work or any other highly physically demanding job (what I did for 34 years) I resigned at 55 at least 3 years earlier then planned.

 

[hankster]

Hi everyone. I haven't posted for a long time, but I thought I'd chime in on this thread since ER is fast approaching and the final planning is coming together.

My intended date is July 1, 2017. First of all, the numbers all look good as far as monthly pension payment, retirement account balances,etc. It will leave a reasonable gap between my career and SS eligibility at age 62 during which withdrawals should pull the balance down <5%. Additionally, I turn 59 1/2 in June, 2017.

My job is also fairly undemanding from January through the end of June. I want to coast out the door before all the chaos starts in mid summer and the BS meter gets pegged . It will also be nice to get settled into our new place during the warm weather.

 

[timmar]

I had wanted to retire before I was 50 years old - a completely arbitrary desire. I turned in my notice with my last day at 49.98 years old with FIRECALC giving us 95% success rate at our expenses as tracked for 2 years.

A time deadline rather than a money deadline gave us a lot more incentive to git-r-done.

 

[Loving Life]

It was picked for me -went to work at 7 shown the door by 8.00

 

[Bryan Barnfellow]

Senator, I am in awe of your ability and determination to squeeze out every dollar possible before ending the w**k life!
Bravo.

-BB

 

[Dawg52]

My date was tied to a bonus payment, that simple.

Same for me and to hand hold my replacement through the year end audit.

 

[Bryan Barnfellow]

For me. It was based on the date I would be eligible to convert my w**k permit in Switzerland to a permanent residency permit (you need 5 years uninterrupted living in CH if European or N. American). Generally you are still employed during this process, but don't necessarily have to be once you have the permanent residency permit in hand.

I got a scare when, after I announced the date to my employer (one year in advance) and a replacement was recruited, the processing times for the conversion were lengthened, putting my end date two months or so before my expected date of decision for the permanent residency permit. Would my recent termination of my j*b make me a risky case for approval?

The Swiss can be tough about letting new people join their club. So, unasked, I presented the immigration office with a detailed financial summary (assets and income) of how my wife and I were going to support ourselves without a j*b and they said, "OK, you're good to go." One of the happiest days of our recent life was the one that saw the postal carrier come to our door with the shiny new permits in hand.

During that last w**k year we visited locations in Italy and France that might prove to be good candidates in case we were eventually turned down by the Swiss. Great "vacations with a purpose" that seriously ramped up the usual "it would be cool to live here" conversations to "could we really make a go of it here".

Now we are very happy residents of Switzerland!

-BB

 

[Nazar]

My case is pretty simple. My selected date will be the first day the month following my 55th birthday, which is my vesting date for retirement benefits. Notice will be given after my birthday as my company frequently shows people the door upon notice and I'll take no chances of not vesting by giving notice before that date.

 

[Senator]

Senator, I am in awe of your ability and determination to squeeze out every dollar possible before ending the w**k life! Bravo.

Thank you for the compliment!

When I first set my date, it was not much more than a SWAG. After reading several posts here, and reading my company documents, I learned about the pension hours and other advantages to staying until July 5. “Leave no money on the table” is a great attitude to have.

The mental preparation is huge for leaving a job. Especially at 56. Knowing when you leave, it’s over. Coming back is probably not likely. Especially if you have specialized skills, and may be worth more to your employer than the market. Once you leave, others fill in the vacuum, and you are no longer needed. Being a nice guy with a positive attitude at work only goes so far.

Looking back, I probably only needed 12 months of mental preparation, not 24+…

 

[hiker88]

I have picked March 15 as the date to give two weeks notice. At that point, I will be eligible for a modest retiree health insurance subsidy and annual bonus should be deposited into my savings account.