When is the optimal month to retire in terms of?
Balancing getting bonus, 401(k) match yearly vesting, Vacation payout- including any tax implications.
10 replies (most recent on top)
@sv Pension?
They removed the term from the next publication of the dictionary.
I see the post did not mention pension, so wondering if the person asking about this had this in consideration.
Your answer is good though - not arguing with anything you stated.
If you want to take a pension lump sum then pay attention to the interest rates in September. The lump will change for retirement payouts for Jan 1 onward. SO if they are not favorable, go before 11/30 to get this year's interest rate. If it is favorable to wait, then go Jan 3 or the first day back so you get 1/12 profit sharing for 2027 payable in MArch 2028 and your christmas holiday pay. Lumps go up in interest rates go down, and visa vera. As long as you are employed in 2026 you get a profit sharing check in March 2027.
@fc noted in the future for all intents and purposes
Not working here in the first place would have been a better call.
Last month.
There is no simple answer, you need to plug your numbers into a spreadsheet and calculate.
It will depend on your age, Medicare eligibility, IRMAA impacts, whether you have a pension, and so on. Search on bogleheads dot org. Some members have posted tools and spreadsheets to help with these decisions.
Now before the stock market crashes.
Right after they pay out your bonus in the spring.
July
Your retirement plan will collapse when the stock or fund crashes