2024-09-04 09:30:22
It is important for your finances to choose your retirement date carefully.
The long-awaited day is approaching. After forty years of practice, it will be time to say goodbye to the world of work. The deadline is coming, but you haven’t decided exactly which day you’ll quit your job for good. If at first glance, it seems that it is the option you want, many elements must be taken into account and it is better not to rush: it will be better for your bank account.
To the point of saying that there is a better day to stop working. By combining several elements, this appears to be the most beneficial for workers who want to retire. And in order not to miss this deadline, it is necessary to start the process now given the processing times for the files.
This day is March 1st. Leaving a month after the start of the new year is more beneficial for your finances, rather than leaving at the end of the year or even in January. The information is available in two places.
First, the retirement pension is calculated over the best 25 years. So, if you plan to finish in October or November, it is better to continue until the end of the year. This allows you to have an additional full year. As a general rule, at the end of a career, the salary is higher than at the beginning, this will lead to a mechanical increase in the basis for calculating the pension, thus making it possible to increase the latter. A few euros are always welcome.
Better yet. While pushing it to February may seem difficult, it will allow you to pay less tax. Pensioners who leave on January 1 receive their bonus and any account balance on December 31. Now, this is taken into account in calculating taxes, which will be paid during the first year of retirement. However, given the decrease in income, this would represent a significant burden.
When leaving on February 1st, the surplus and balance of any account will be paid on January 1st. This will be included in the tax return only in the following year, a year in which the amount to be paid in tax will be reduced in consideration of the transition to retirement. After four decades in the working world, a few weeks’ ride is an option to consider for your wallet.
But you should not delay in starting the process to leave this day. With a processing time of 4 to 6 months, the creation, today, of the pension file will not be completed, initially, until the beginning of January.