When preparing for retirement, all the accounts are few and there are experts who assure that there are even better times of the year than others. So, if you don’t mind waiting a bit longer, according to your advice, you might want to work until the end of the year.
Why? Well, because by concentrating greater consumption, the second half of the year is traditionally more inflationary than the first, especially the months of November and December.
And what does the CPI have to do with calculating our pension? The Consumer Price Index is not only used to update payrolls from year to year; it is also used to adjust the contribution bases. In other words, to avoid that the values of 25 years ago that enter the calculation are not totally out of phase with respect to the current standard of living.
The contribution bases of the 24 months immediately prior to the month prior to retirement are taken at their nominal value, while the rest are updated according to the evolution of the CPI from the month to which the bases correspond to the month prior to retirement. .
All these updated contribution bases are the ones that later allow obtaining the regulatory base that will determine the amount of the pension. So if we make the account taking as a reference a month with an inflation peak we can obtain a somewhat higher pay. However, in practice there is no guarantee that inflation will follow any rules, so this factor should not be the determining factor when choosing when to stop working.
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