When to stop work Birthday or end of March

cmayflower

hugheskevi wrote: »

Exact point of leaving usually doesn't make much difference. Some of the things I consider when choosing optimal leave date are:

• Date have to be in employment to receive bonus
• Date of leaving to coincide with a favourable time to sell / buy property
• Ensuring Personal Allowance or basic rate allowance will be fully used
• National Insurance qualifying year - requires working a few months into financial year
• Avoiding leaving just before months with Bank Holidays or in February
• Having last day of service on a Monday to get paid for weekend days

That's helpful thank you, I'll be looking at the last three points in particular.

bluenose1

cmayflower wrote: »

Yes Thank you.

The statement also says that for every additional year worked between now and SPA I could earn at least £1.75 per week additional pension = £21 per year.

It's been a long day on work so am I missing something?
£1.75 x 52 =£91 per year.

Sounds like you may be retiring November 21.
I am hoping to go at 55 at latest in June 21.
It doesn't sound that far off now for either of us. Can't wait to retire but I do have brief moments of doubt.

cmayflower

bluenose1 wrote: »

It's been a long day on work so am I missing something?
£1.75 x 52 =£91 per year.

Sounds like you may be retiring November 21.
I am hoping to go at 55 at latest in June 21.
It doesn't sound that far off now for either of us. Can't wait to retire but I do have brief moments of doubt.

:j thanks for spotting my mistake, yes it's been a long day here too, just trying to check some things out before I take the leap. I have no doubts and know how I'll be filling my time, cannot wait! too many of my friends have not made it past 57 so I'm intending to jump in with both feet, good luck.

sheslookinhot

hugheskevi wrote: »

Exact point of leaving usually doesn't make much difference. Some of the things I consider when choosing optimal leave date are:

• Avoiding leaving just before months with Bank Holidays or in February

Can you please advise why you recommend avoiding retiring in February ? ( February is month my DB pension max's out)

Albermarle

From a non financial point of view, it might be better to retire in April , with the Summer ahead of you .
November might not be a good month especially if you think you might take time to adapt to not working anymore . Could be a long Winter in that case.....

AlanP_2

sheslookinhot wrote: »

Can you please advise why you recommend avoiding retiring in February ? ( February is month my DB pension max's out)

I would guess because you get 1/12th of annual salary for a 28 day month as opposed to 30/31 days for the rest.

Your effective "day rate" is higher, same logic for Bank Holiday reference.

GibbsRule_No3

What is the benefit of not retiring when Bank Holidays are in the month? I was thinking of going December 31st but might stay until March 2020 (hang on when is Easter next year?). March is when my SP is due but will I not receive the money until April anyway?

Paul_Herring

hang on when is Easter next year?

Sunday, 21 April, 2019.
Sunday, 12 April, 2020.

What is the benefit of not retiring when Bank Holidays are in the month?

I think it's something to do with eeking out the most number of [paid days] when you're [not required to work].

Which somehow ignores all the days where you actually are required to work in order to wait them out... (which is fine if you enjoy working, not so much if not.)

Personally the only thing that I'd bother considering is paying sufficient NI in the tax year to earn that extra year of credit for SP, if I were in the position of requiring that extra year.

(Which, fingers crossed, won't be the case by the time I retire, let alone by 55.)

cmayflower

Albermarle wrote: »

From a non financial point of view, it might be better to retire in April , with the Summer ahead of you .
November might not be a good month especially if you think you might take time to adapt to not working anymore . Could be a long Winter in that case.....

Thank you, I love November and for that matter the winter. I know I won't need time to adapt to not working anymore, I have too many interests for that.

badmemory

GibbsRule_No3 wrote: »

March is when my SP is due but will I not receive the money until April anyway?

Beware the tax man! They charge the tax when the weekly state pension is accrued not when it is actually paid. So if you are paying more than 20% tax you could save some tax by deferring for a few weeks.