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Thread ID: 140444	2015-10-13 05:34:00	Best time to retire	rny (6943)	PC World Chat

Post ID	Timestamp	Content	User
1409792	2015-10-13 22:27:00	If it is pay for accumulated leave you should pay tax only at your normal rate of income tax. It is just earnings after all. If you are going to retire fully, just make sure you have plenty of savings put away. You will need them!	Richard (739)
1409793	2015-10-14 03:39:00	Cheers Lurking, my main concern is what tax liability the accum leave pay would accrue, if I finished in 2015 as opposed to a short time later in the next tax year. Don't want to be faced with a large tax bill a year into my retirement as has been indicated as a possibility by some work colleagues, who, I doubt know too much about the subject. Rny In either case you will be taxed on a Lump Sum payment, this year or the following year. It's 22 years since I handled payroll, so like now our investment earnings are all taxed at the same rate, not like when it was at Company tax rates for anything over wage and salary earnings, big thanks to Dr CULLEN for that move on taxation. Unlike our Maori cousins we cannot go back and back and back for a last and final re-payment of over being taxed too much, rofl. lurking.	Lurking (218)
1409794	2015-10-14 04:19:00	Thanks folks for your input. I will be making an appointment with my pay office to discuss options, and perhaps IRD. I will certainly be looking forward to the Easter Bunny in 2016. Thanks again. Rny	rny (6943)
1409795	2015-10-14 05:31:00	It makes no difference what day you stop. IRD will take the tax from the extra pay anyway..... Prefect - my dad retired just before age 60, which was the age then - due to health reasons. He died aged 80. Husband retired aged 65, he isn't dead yet....and he basically has retired as in not doing self employed work now... We die regardless of working or not working. Plenty of people are dead before they even get to retirement age. No offence intended just going on my experience with retirees from the Airforce. Seemed to be going to funeral after funeral and they were the ones that retired some relatively young. When drinking afterwards at srvice we always joke retire and die.	prefect (6291)
1409796	2015-10-14 06:42:00	They always say that. I retired at 50 and still kicking. Where do you get these ideas from old boy?	Cicero (40)
1409797	2015-10-14 08:11:00	SWMBO's Grandad retired after 40 years with the railway. He lived longer than that after retirement and smoked all his adult life. Ken	kenj (9738)
1409798	2015-10-14 18:25:00	Seemed to be going to funeral after funeral and they were the ones that retired some relatively young . . Well, not too many people get to retire when young and fit . We get old, we fall apart and then we die . . . . . Some of us fall apart sooner then others, it's all genetics .	pctek (84)
1409799	2015-10-14 19:51:00	SWMBO's Grandad retired after 40 years with the railway. He lived longer than that after retirement and smoked all his adult life. Ken Are you suggesting we take up smoking?	Cicero (40)
1409800	2015-10-16 10:54:00	I am nearing my retirement date and have planned on end of March next year as the time . As I am due to collect a substantial amount in unused leave, what would be the tax situation given my timing of 30 March? Would there be any monetary advantage in terms of tax liability if I was to work a few days into the new financial year? I have spent some time on the IRD website, but cannot find anything on that topic specific to my situation . FYI, 30 March is the date at which I become entitled to some long service leave, and as there is no pro rata provision from my employer, better in my pocket than theirs . RnyAn excellent question . The critical point is you refer to 30 March . The tax year ends on 31 March . If you elected to claim your unused leave before 1 April then you would inadvertently increase your years income and probably rise into a higher tax bracket . You wouldn't loose a lot but there is no reason to volunteer tax if you don't want to . Instead you should delay any claim/payment for wages due into the new tax year after 1 April .	Winston001 (3612)
1409801	2015-10-16 11:05:00	I recently had to guide a friend on a similar question . She was entitled to redundancy which reflected 30 years of work and a years pay in one lump sum . At one time redundancy was untaxed - then it became taxed at 6% - but now it is taxed at whatever your normal tax rate is . My friend unknowingly was going to double her income by receiving the redundancy with the result she would give away 30% or more in tax . She isn't wealthy by any stretch of the imagination so this represented a lot of money . Curiously, the payroll people at her work (a multinational business) had no idea about this and were baffled when I tried to explain the implications . Fortunately it all worked out but timing large wage/redundancy payments is very important .	Winston001 (3612)
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