When it comes to planning your retirement date, it’s all about timing. A number of different timing issues can impact your retirement income, so it’s important to choose a date that maximizes your potential retirement benefits and minimizes your tax liabilities.
In this webinar, Nick Johnson of Willis Johnson and Associates shares six things Shell employees should consider when setting a retirement date. This webinar covers a variety of potential impacts and questions you can ask to help you prepare.
How Can I Keep My Tax Burden as Low as Possible?
From a tax perspective, if you retire late in the year, you’ll receive a lot of income that could be taxed at a higher rate. Things like severance, BRP, etc. could be pushed to a later year and taxed lower.
Should I Wait to Retire until I Receive My Next Shell Performance Shares?
Many people think they should wait to choose their retirement date until they receive their next performance grant or until their shares are vested. In reality, the performance shares should not drive retirement date selection as they are prorated and the impact of staying an extra few weeks or months many not necessarily be significant for you.
Does My Shell Bonus Matter When I’m Thinking About My Retirement Date?
If you retire mid-year, you’ll still have the potential to receive a prorated bonus. However, because your company and employee factors won’t be determined yet, you won’t know exactly how the bonus calculations could impact you. Retiring in the first quarter, on the other hand, means the performance factors for the previous year will be determined by the time you reach your retirement date. While bonus amounts can vary based on individual circumstances, the webinar explains why it could be worth it to wait for a few months and potentially earn a higher factor for your bonus.
How Could Different Shell Pension Options Affect My Retirement Date?
Shell employees have been enrolled in different pension programs, depending on their employment time frames. APF and 80 Point Pension are the two main options. Each pension has a different set of criteria for qualification and compensation; the webinar highlights the differences in each pension option and how their individual calculations can impact your retirement options.
What Should I Consider if I’m Offered Severance from Shell Oil Company?
The standard severance payment is typically three weeks of pay per year of employment. If you’ve been a long-term employee, your severance payment can total up to a fairly significant sum. If you’re able to set the date your severance takes effect, the webinar explains how this adjustment can have a positive impact on your tax burdens.
Watch the webinar to learn more about you can choose a retirement date that fits your needs. And, for more information on how we can help you successfully prepare for your retirement, read about our philosophy and process.