Summer is Not the Hottest Time to Begin Your Retirement — Here’s Why

Retirement is something a lot of people look forward to — often counting down the clock to their last day of work. If that happens during the summer, you might want to think twice.  According to GO Banking Rates, it often pays to wait until the end of the calendar year to retire. Here’s why:

Bonuses or end-of-year benefits. Many companies distribute bonuses, profit-sharing payments, and other incentives at the end of the year. If you retire during the summer, you could lose this additional money.

Tax implications. Retiring earlier in the year could put you into a different tax bracket, which cost you more money. Waiting until the end of the year allows more time to plan retirement income and deductions to minimize taxes.

Seasonal stock market trends. If your retirement income, such as 401(k) plans, is tied to the stock market you might want to hold off until the end of the year to retire to maximize your portfolio. That’s because, historically, markets tend to perform better in the winter months because of year-end rallies and increased consumer spending.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.