Retirement Strategy: Best time of the year to retire?

[CharlesW986326]

Hello and thanks for your time. I'm currently working full time but would like to retire at 60. Of course, healthcare is a primary concern. Does anyone have a strategy about the best time of year to choose to retire and how that might affect healthcare (and taxes)? For example, if you are signing up for the ACA, is it better to have less income so you might qualify for subsidies, and therefore choose to retire at the beginning of the year? Or does it not matter what time of year you retire? I realize there are a lot of factors so I'm just looking for ballpark advice from people who have been through it. Thank you.

[Tonster521]

@CharlesW986326 First, I would review the eligibility requirements for any of your employer's benefits (i.e., defined benefit pension, 401 K match, profit sharing, any bonus payments, etc.). For example, some employers who sponsor profit sharing plans may operate on a calendar year basis. So, profits, if any, may not be known until after December 31st. Payments, if any, may be issued in February. Also, you may accrue vacation (i.e., 4 weeks, etc.) annually. Will you receive vacation pay in lieu of time off? With regard to health insurance, the ACA  provides subsidies if your income is below certain thresholds. You need to review those threshold for your status (i.e.,single, married, dependents,etc.) in the year you loose employer sponsored health insurance. If your income is above the thresholds, take a look at COBRA continuation coverage thru your employer's Plan. Based on all of the above, there may be an advantage to retire in the beginning of the year. 

[CharlesW986326]

Thank you for the information. Lots of good points to think about. Have a great day!