There is no single month that is the best to retire, though many experts believe January and December are the most beneficial. The two biggest factors that can influence when it is best for an individual to retire are paying taxes and receiving Social Security benefits.
Many people determine their retirement date depending on how it affects their Social Security benefits. People who are looking to retire before hitting the program's full retirement age can expect to have their benefits reduced if they make more than $14,160 in the year they retire. In this instance it is more beneficial to retire earlier in the year rather than later.
It is better for individuals who earn higher incomes to retire later in the year in order to help them plan for their taxes. People who wait until later in the year to retire are able to push the start of their Social Security benefits into the next year and can avoid paying taxes on them.
Job employment is also an important factor in determining which month people choose to retire. The months of December and January are the best for federal employees to retire because of how they receive their benefits.