Best time of year to retire (UK!)

Thrugelmir

Reduced my hours last February. With the days lengthening felt like a good time to start. Rather than now. When days are much shorter.

Snakey

Early June.

This is a bit financial because I'd want one final year of NI contributions and also to use up my personal allowance and some basic rate band.

Also to get the two Easter bank holidays and the two May ones - not only for the money but also to savour that last ever experience of having a long weekend.

But the main reason is that I don't plan to make any sudden changes when I give up work. I want time to destress and calm down and put myself into a position to decide what I want now, rather than following a list of what I assumed I'd want back when I had to work full time.

Which means I will be spending maybe 4-5 months pottering around the flat and the local area, ostensibly doing clear-outs and running errands (minor home maintenance etc) and keeping fit, but really just getting used to things being different and what it feels like and what I feel like. And I know that I don't want to be doing that when it's six degrees outside and doesn't get light until 8am, as the point of quitting work is to expand my options but this would restrict them. I'm aiming more for the "endless summer holidays of my childhood" experience, give or take a BMX.

With a three-month notice period there's always a risk that they'll pay you off, casting you out into the snow and ice and a sub-optimal tax position. In theory that's a minor risk, since if you were immediately replaceable you wouldn't be on three months notice in the first place. But if there's a recession on, or if you're perceived to be "dead wood" by that point, you might get a nasty surprise. I suppose you'd be able to quantify that risk before you decided though.

zagubov

In my job you can only retire on one of three different dates in the year (the last days of April, August or December).

The August and December dates are the best, as you're well into the new tax year. Also, holidays get cheaper straight after, and why not go somewhere warm while the weather worsens?

AnotherJoe

One consideration, as you did point out, if you wait until you have earned around £12k in the tax year, then you can claim back all the tax you paid, so the last few months you are earning much more on a % basis than normal.
OTOH if you retired, say, now, then you miss out months of commuting in the dark and cold.

As it happened i retired in June for other reasons than financial and that worked out fine, plus you do then get the summer to enjoy, rather than retiring later in say December when another summer has gone, one you'll never get back.

So I suppose for back end of the year it depends if that is early to avoid all the cold months of commuting or late and you extended it over that past summer.

ScoobyZ

AnotherJoe wrote: »

One consideration, as you did point out, if you wait until you have earned around £12k in the tax year, then you can claim back all the tax you paid, so the last few months you are earning much more on a % basis than normal.
OTOH if you retired, say, now, then you miss out months of commuting in the dark and cold.

As it happened i retired in June for other reasons than financial and that worked out fine, plus you do then get the summer to enjoy, rather than retiring later in say December when another summer has gone, one you'll never get back.

So I suppose for back end of the year it depends if that is early to avoid all the cold months of commuting or late and you extended it over that past summer.

I agree with this retire after you have made 12.5k and get the tax back. Then draw pension in next tax year. Also you should get a few bank holidays in as well

JoeEngland

I retired at the end of July and that was driven by a health issue. It has worked out well as I had some half-decent weather to enjoy for a couple of months and I will get a tax refund next year. The good weather was useful for doing some gardening jobs in preparation for selling the house next year.

MrDinosaur

As others have said ignoring any financial Implications, then it really doesn’t matter when you finish you will go through all the months once retired, one mor summer or one less winter does it make any real difference. Finish when it’s right for you and enjoy the freedom that it brings.

sheslookinhot

ScoobyZ wrote: »

I agree with this retire after you have made 12.5k and get the tax back. Then draw pension in next tax year. Also you should get a few bank holidays in as well

Is working for an extra 2 or 3 months really worth it to get some tax refunded ? If money is that important why not just continue to earn.

shinytop

For me the time of year didn't matter. I retired when I was ready to, in August, just before a planned holiday, which was nice.

You need to make the most of whatever season it it is, retired or not. If it's cold, wear a coat; if it's dark switch on a light; if it's wet, etc ...

NedS

sheslookinhot wrote: »

Is working for an extra 2 or 3 months really worth it to get some tax refunded ? If money is that important why not just continue to earn.

Clearly it is otherwise none of us would be here in the first place. We are all looking to squeeze that extra little bit out of our circumstance. So all else being equal, why would you not what to take advantage where you can?