Thinking of retiring in the next few years? When is the best time of year to retire? There are several possible answers to that. Many people prefer Christmas time. Why not complete a year of work in mid-December, go on a long holiday break, then start a new chapter of life in a new year?

Some people like to retire just after the anniversary of their employment with their employer. They may have a target to complete a fixed number of years, such as ten or twenty-five, or just an extra year to boost their long service leave entitlement.

The rules of some super funds dictate when it is best to retire. For example the NSW Government fund SASS is a defined benefit fund that uses a formula that, for most people, maximises their benefit if they finish work immediately after the first payday in January, or after a pay rise.

Lots of workers like the idea of reducing their income tax. To do that, in most cases, it is best to retire in July, early in a new financial year. That way personal taxable income will be low, so any tax deducted from lump sum payments for unused leave should be refunded in time.

Those who live in colder parts of Australia and retire in July can also go North for winter.

People who will depend on the age pension for part of their retirement income may choose to finish work at their 67^th birthday, the pension eligibility age. Anyone unsure how much age pension they will receive should talk to a financial adviser to work out where their income will come from.

Some people are keen to retire because they don’t like being at work, but can’t really afford to quit. There may be conflict with management or workmates. In that case taking more holidays to get through is smart. Many people have accumulated unused leave.

Another common scenario occurs when people still enjoy the basic job they trained for but dislike the administration and compliance burden that goes with it in the modern workplace. A good solution is to ask for a demotion, a reduction in responsibility or days worked.

Phasing out slowly is another option. Transition from full-time to 4, 3 or 2 days per week over several years enables a person to stay engaged, but ease into retirement. It may provide an opportunity to mentor young people and pass on experience, skills and knowledge.

More people are working part-time to age seventy and beyond. This also gives them a chance to learn retirement finances better and develop new interests and hobbies.

Anyone thinking of retiring this July, or any time soon, should talk to an adviser now so they can start planning to achieve their ideal outcome.