Results for Retirement Planning

How to Choose a Retirement Date

Your last day worked (meaning your retirement date) can be any date you choose—toward the beginning, middle or end of the month. As you decide what date is best for your situation, you’ll want to think about what happens to the benefits you have today once you retire and how prepared you are for a gap in cash flow.

Why You Might Want to Choose a Date That's Toward the End of a Month

  • If you elect to receive your pension benefit in the form of a monthly payment, there’s less time between when you receive your last paycheck and when your first pension payment will arrive. That’s because pension payments are made on the first of the month. For example, if you retire on March 29, you could receive your first payment on April 1 if you return all your paperwork on time. (If you choose a lump-sum cash payment, It takes 90 – 120 days following retirement to process.)
  • If you participate in the Annual Employee Incentive Plan (AEIP) and work through Dec. 31 or the last business day of the year (you complete the first three months of the Plan’s fiscal year, which starts on Oct. 1) and there is a payout, you will be eligible for a portion of your bonus after you retire. For AEIP, retirement means on your last day worked: you are at least age 55 with 10 years of service or at least age 65 with 5 years of service. If you work through the 15th of your last month at Rockwell Automation, you will receive credit for a full month. Your bonus will be paid to you in December. For details about other incentive plans, talk to your HR representative.

Why You Might Want to Choose a Date That's Toward the Beginning of a Month

  • You gain an additional 1/12th of your annual vacation allowance that is then paid to you after you retire.
  • Many of your current benefits (such as medical and dental coverage) continue through the end of your retirement month. This gives you additional time to analyze your health care coverage needs during retirement and explore your options.

NOTE: If you choose a retirement date toward the beginning of a month, you’ll need to prepare for a slightly longer cash flow gap. For example, if you choose to retire on March 2, you would need to have enough savings on hand to cover one month of living expenses since your first pension check would arrive on April 1. (It takes 90 – 120 days following retirement to process a lump-sum cash payment from the Pension Plan.)

Do You Participate in a Non-Qualified Retirement Plan or Do You Have Stock Options or Other Equity Awards?

There are additional items to consider when choosing your retirement date. For more information, download the Applying for Your Additional Retirement Benefits PDF guide.

NOTE: The non-qualified retirement plans are offered to employees who are affected by the IRS compensation limits that apply to plans like the Pension Plan and Retirement Savings Plan. Employees who are eligible for any of these benefits received information at the time they became eligible for them.