Choosing when to retire is one of the most important decisions you’ll make. And while retiring may be more beneficial at certain times of the year than others, it’s ultimately a very personal decision that you should make when the time is right—and you’re financially prepared.
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With that in mind, GOBankingRates spoke to several retirement experts about whether they think there is a best day of the year to retire and what you should consider when making the decision.
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The end of the year could be the best
When it comes to retirement, the day of the week may not be as important as the time of year.
“While there is no one-size-fits-all answer, retiring at year-end can be beneficial for several reasons,” said Tyler Meyer, CFP, founder of Retire to Abundance. “First, you may be able to maximize your annual benefits, such as bonuses or employer contributions to retirement plans. Additionally, retiring at year-end allows you to better plan your taxes because you have a clearer view of your total annual income and may be able to defer withdrawals from retirement accounts until next year.”
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The warmer seasons can be ideal (for some)
If you don’t want to wait until the end of the year, the warmer seasons are another good time to retire.
“Spring and early summer are often considered ideal times for retirement,” Meyer said. “The weather is generally better, making the transition to retirement more pleasant.”
On the other hand, some retirees may prefer to wait until winter if their goal is to continue earning money until they can get out and enjoy winter or holiday activities. The first day of winter this year is December 21st.
The middle of the year also has its advantages
For some people, however, retiring in the middle of the year brings tax benefits that are hard to ignore, in which case it may be better to choose the day right in the middle – perhaps around June 1.
“If you retire mid-year, you can spread your income over two tax years, which can help you manage tax brackets and potentially reduce your overall tax liability,” Meyer said.
An important personal date might be best for you
Similar to wedding dates and other important life events, sometimes the best day of the year to retire is simply a date that has personal meaning to you.
“I don’t believe there is a specific day of the year that is best to retire,” said Michael Collins, CFA, founder and CEO of WinCap Financial. “Some people may choose to retire on their birthday or another special day, but ultimately the timing should be determined by one’s circumstances and goals.”
Retire when you are financially ready
Many experts agree that there really isn’t one best day to retire—nor is there a best month or time of year. Rather, it’s about choosing a date that aligns with your financial preparation, wants and needs.
“The best time to retire is when you have thoroughly assessed your financial and emotional readiness, rather than just focusing on a specific day or month,” Meyer said. “Consider factors such as your health, your spouse’s retirement schedule and any major upcoming life events. Retire when you are confident you have created a sustainable financial plan that supports your desired lifestyle.”
Ask yourself what retirement means to you
For some people, retirement means leaving the workforce behind forever and achieving ultimate financial freedom. For others, it’s a little more nuanced. You should figure out what retirement means to you before making any major decisions.
“What does retirement mean? Is it simply reaching a point where you are financially able to retire, or do you feel compelled to simply withdraw from public and professional life? The answer to that question is very subjective,” said John Gillet, financial planning expert and CEO and founder of the Gillet Agency.
“Everyone is different,” Gillet said. “I and some of my clients can say there is a need to continue to pursue a purpose. And for some, that means working in a field they love and feeling like they are contributing.”
It is ultimately up to you
The decision of when to retire is ultimately up to you and how prepared you are for this next big step in life. For some, the tax benefits of retiring mid-year or at the end of the year may be important factors in their decision. For others, it’s more about choosing a date that is personally meaningful to them – be it a Sunday or a Thursday.
“My advice for choosing the best time to retire would be to carefully consider your financial situation and personal readiness,” Collins said. “Consider factors such as your age, savings, health and future plans before making a decision.”
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This article originally appeared on GOBankingRates.com: Is there a best day of the year to retire? Experts explain
