What is the perfect month in which to retire?

[unclemick]

I voted jan cause even though I was layed off that's when it happened.

Severance pay, unused sick leave/vacation all fell in my first year of ah 'unemployment' in their view, ER in mine. Thus I had some control to stay relatively 'tax poor' my first year.

heh heh heh -

 

[FreeAtLast]

January 2- You get to go to the employee holiday party and know that it is your last one. People in the office are generally nice to each other at that time of year even if it only lasts a couple of weeks.
Deductibles on insurances get reset so you are not going to a new policy mid year. It becomes a new tax year so any lump sum payouts can be taken in the first year of retirement.

 

[FIYes]

Due to pension rules, the first day of the month following the month in which I turned 55 was the magic date for me. I considered waiting until the end of January. The reset on 401k limits and the reset on the flexible health spending would have been a plus, but once I could go it was just too tempting...and I don't regret getting out as soon as the getting was good!

 

[davemartin88]

The first month after you're financially able! Why wait?

 

[Alan]

At the company I RE'ed from January held some attractions for those able to RE at the end of the year.

I retired the very first month I was eligible. It just happened to be January.

 

[eytonxav]

While I agree with the idea of as soon as you can, it makes sense to consider the tax implications, bonus, stock vesting, anticipated expenses, etc to make the best decision for you.

I could have retired long ago, but decided to hold off while my kids were going through college, with me paying the bills. Still have DD in school as a Jr this Fall, but will pull the plug in the first half of next year nevertheless.

 

[chinaco]

You missed an option on the Poll: I did FIRE!

IMO - The prefect month is the first month you are able to do it.

Why wait?

 

[Glo]

I retired in September and it was perfect since Fall is my favorite time of the year. We spent 6 weeks traveling the state looking at Fall colors and hiking various state parks. Can't believe its been 5 years!

 

[dessert]

One thing for sure, everyone has the correct answer (for them). There are such big differences from person to person and company to company, that each has to maximize his/her own opportunities.
I retired on April 1st because of bonus payments in March. I also had the option to take vacation or sell it back. Then I also received 3 months of this years projected bonus when I left. My age also dictated that my DB pension was maxed out and there was no incentive to stay longer.
I maximized my benefits by leaving on April 1st at age 60.
Even though I was eligible to leave before that date, the way I looked at it, that was when I was "most eligible" to leave.

 

[Katsmeow]

I didn't answer the poll because it is individual to situations often depending on work benefits. When DH retired he didn't want to retire before the end of March because we was to receive a bonus that month that about 40% of his prior year's base salary and he had to be employed to receive it. If he retired after April he would have another year of service for his DB plan calculation. If he retired after May he would receive payment when he retired of one half of the next year's vacation. So, June seemed right. His boss wanted him to work another month and he was willing to do it. However, strangely enough for his lump sum pension benefit (which he took instead of a pension) he would receive about $7k more retiring in June than July so he retired in June.

 

[Bestwifeever]

DH and I both left our jobs in August. Would have been nice to have had the summer free, though, so I voted May.

 

[CantThinkofAUserName]

The month isn't all that important to me, but I voted for April because:

it's my birthday
annual bonuses will be paid by then even if there's a delay
I won't spend yet another summer freezing in my cubicle while the weather outside is so nice

 

[megacorp-firee]

I say it's any month with a 'letter' in it.

 

[W2R]

I say it's any month with a 'letter' in it.

I second that thought! Not one person has voted yet for November, the month when I retired, but let me tell you - - - November was a great month in which to retire. Because of ER, I sure had a lot to be thankful for that Thanksgiving and on into the holidays.

 

[Walt34]

Unless there's an upcoming severance package, buyout or the like I can't think of a reason one month would be any better than another. I retired effective July 1, 2002 but that was just when the numbers worked and there was a conference the previous April/May that I wanted to go to. (I enjoyed my job. Other factors made me leave.)

By early September we had moved from the insane traffic jams to West Virginia, where for the most part a "traffic jam" is two cars backed up at the stop sign.

 

[rescueme]

I selected any month in which there is a Playboy Centerfold that I "admire" ...

Any month is good, in my world....

 

[martyb]

I will be able per the rules of my retirement plan (CSRS) to retire on my 55th birthday, which is in January of 2013...so 15 1/2 months from now. However, if I want to be able to get paid for another year's worth of vacation time (208 hrs or a little over 5 weeks) I'd have to work until the end of December of the same year. If I did that I could also contribute another $22,500 to my TSP (401k) and my pension would also increase by an additional 2% for the rest of my life. Not saying I'd work the extra year but that's the way it would work out for me. In my opinion, the optimum time for a fed worker under the CSRS system to retire is the very end of December or the first couple of days of January....mainly to be able to get paid for the maximum amount of vacation leave (Annual Leave).

 

[slazenger]

You should be so in the clear that it would be inconsequential when you retire. Rephrased, If it has more than a miniscule effect what month you retire, then you're not ready to retire yet.

 

[Finance Dave]

The month isn't all that important to me, but I voted for April because:

it's my birthday
annual bonuses will be paid by then even if there's a delay
I won't spend yet another summer freezing in my cubicle while the weather outside is so nice

I agree with all these except the birthday...I was born on Thanksgiving...my mom calls me a turkey.

 

[ER Man]

Retire on April Fools day?

 

[old woman]

I voted April because it is my birthday and I work in accounting so am swamped in Jan-Feb and need to train my replacement. It will allow me to max my 401K for the year and my vacation pay accrued will make my annual income enough not to need withdrawals the first year. Also I can enjoy spring cleaning and getting ready to enjoy summer.