GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
But what about the best time of year to retire?
Is it a good idea to retire mid-year or should you reconsider your target retirement date?
Timing of Bonuses and End-of-Year Benefits
Most retirees wont be able to retire on Social Security alone.
Hakimian doesnt recommend retiring in the summertime due to the timing for bonuses and end-of-year benefits.
Many companies disburse bonuses, profit-sharing payments and other incentives towards the end of the calendar year.
Retiring in the summer could mean missing out on these additional income sources, said Hakimian.
Its also important to consider every company times their bonus distributions a little differently.
Being pushed into a higher tax bracket may result in a more expensive tax bill.
However, Hakimian said retirees can avoid this by choosing to retire at the end of the year.
This provides them with more time to plan their income and deductions to minimize taxes.
More From GOBankingRates
Share This Article:
