Chevron Retirement Planning

6 Crucial Timing Decisions to Get Right

Key Summary: The most important consideration for timing your retirement date is taxes. The various income streams from Chevron benefits stack up throughout the year and can launch you into the 37% tax bracket if you aren't mindful of how and when they each are paid out.  

Tax-Inefficient Example
Let's say you're planning to retire in mid-2024. You'll receive a partial year's worth of salary, your 2023 bonus, stock options, and a vacation payout. You'll also potentially start your annuity pension because you may not realize you're just tacking more income on in 2024. If this is the case, you're likely well into the 37% tax bracket. The following year, you'll get a prorated bonus for 2024, and if you didn't make an election to annuitize or defer that RRP, you'll receive that as a large lump sum. Additionally, you'll still receive your annuitized pension. For the sake of this example, let's say you've been told you need to do NUA immediately after you retire, so you do NUA in 2024 and pay ordinary income taxes on the cost basis. You would still be in the 37% bracket, but with more income being taxed at that level.  In the low-income years that follow, you'll only be receiving the annuity pension until you start social security benefits and your income starts to creep back up again.

Tax-Efficient Example

If you come to us for tax-optimized financial planning, we'll walk you through an in-depth cash flow projection. With the previous example, we'd recommend you push your retirement into later in 2024 and reconfigure your income sources for a tax-optimized retirement like this:

Information Last Updated: 9/26/24

Click Here to Share this Presentation with a Friend

Meet with one of our Chevron benefit specialists to find a retirement date, optimize your benefits, and save on taxes. 

Additional Resources to Answer Questions About...

Timing Retirement From Chevron

• An In-Depth Guide to Timing Your Chevron Retirement

Chevron Benefits 

• Maximize Savings Using Chevron Retirement Benefits in Tax-Beneficial Ways
• Tax Impacts of Non-Qualified 401(k) & Pension Benefits for High-Income Earners
• Save More in the Employee Savings Investment Plan. Here's How
• How to Use NUA with Chevron Stock To Save Taxes in Retirement

Chevron Retirement Considerations

• Understanding Health Care Benefits after Retiring 
• Understanding Your Chevron Retiree Medical Benefit Plans At Any Age
• How To Choose the Right Financial Planning Approach for Your Family
• How to Pick Your Retirement Date to Optimize Your Chevron Pension

Do you still have questions?

Get them answered by our team by filling out the form below. 

The team at Willis Johnson & Associates has worked with many Chevron employees to evaluate the financial implications surrounding their retirement. 

If you’re preparing to retire from Chevron and want guidance and support to plan for your future, contact us. We’ll use our experience and expertise to weigh competing financial factors and create a strategy that fits your specific circumstances.  

Alexis Long, MBA, CFP®

Managing Director, Wealth Management

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Corporate benefits may change at any point in time. Be sure to consult with human resources and review Summary Plan Description(s) before implementing any strategy discussed herein. Willis Johnson & Associates is not a CPA firm.