Retirement is often tied to a birthday. Maybe 62, 65, 67, or another age that has become your mental finish line. For many, the better question is not, “How old will I be?” but rather, “What needs to happen first?” Certain events can meaningfully affect the timing of retirement. For example, you may want to stay employed until a bonus is paid, company stock vests, or pension benefits reach a more favorable milestone. You might be waiting for a mortgage to be paid off, for a child to finish college, or for a spouse to move closer to their own retirement goals. Healthcare can be another major consideration. If retiring means leaving employer-sponsored coverage, the timing of the transition may matter as much as the size of your investment accounts. Taxes deserve attention, too. Retiring late in one year versus early in the next could create very different income patterns. That may influence decisions about retirement plan withdrawals, Roth conversions, charitable giving, or the timing of certain compensation. Then there are the personal events that have nothing to do with spreadsheets. Maybe you want to finish one last major project at work. Perhaps your spouse plans to retire at a different time. You may be coordinating a move, waiting for a home sale to close, or planning to spend more time helping family. A practical way to choose a retirement date is to work backward from the events that matter most. Start by asking:
You may find that your ideal retirement date is not your birthday. It could be the month after a bonus, the year after college tuition ends, or the moment when your financial and personal pieces finally line up. As retirement approaches, let us know what milestones you are watching. We can help you evaluate the timing and make sure your retirement date reflects the full picture, not just the number of candles on the cake. |
Choose a Retirement Date by Events, Not Birthdays
