Early Retirement Offer from employer
- Thread starter Dave Hess
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My early retirement offer is roughly 43% of my average salary for the last 8 years. That would be something like 40k a year for the rest of my life. No inflation raises though. I would be 47 then if I choose to take it. I'm trying to decide if its best to take it and do something else or just stay longer. Each year it goes up 1.5% towards the retirement percentage. The only way this would be possible would be to find another decent paying job with good benefits. I'm not sure if this is considered good or bad retirement.
I retired at 61, about 18 months ago. Here's the deal...
First, retirement is great. Do what you want when you want with someone else paying for it. Play golf everyday. Start your own business if you want. Spoil the wife, kids, grandkids. It's up to you everyday. The freedom from corporate stress is literally a life changer. Took me about three months to decompress.
Second, the corporate world is changing rapidly. It is increasingly focused on this month/quarter/year's results with ever decreasing concern for the people that make it happen every day. There is no guarantee that any program they are offering today will continue. If the business hits a little speed bump, well, all bets are off (see #3).
I am convinced that the global debt bubble will eventually burst with catastrophic consequences for most folks. So, get it while you can. Ride off into the sunset with a smile on your face. Sign up for Social Security as soon as you can for a little turbo boost to your retirement income (before they change that).
I am set for life and very pleased about it. I am also very grateful for the situation I worked to create (nobody ever gave me anything), but I realize most folks are not and will never be in my situation.
First, retirement is great. Do what you want when you want with someone else paying for it. Play golf everyday. Start your own business if you want. Spoil the wife, kids, grandkids. It's up to you everyday. The freedom from corporate stress is literally a life changer. Took me about three months to decompress.
Second, the corporate world is changing rapidly. It is increasingly focused on this month/quarter/year's results with ever decreasing concern for the people that make it happen every day. There is no guarantee that any program they are offering today will continue. If the business hits a little speed bump, well, all bets are off (see #3).
I am convinced that the global debt bubble will eventually burst with catastrophic consequences for most folks. So, get it while you can. Ride off into the sunset with a smile on your face. Sign up for Social Security as soon as you can for a little turbo boost to your retirement income (before they change that).
I am set for life and very pleased about it. I am also very grateful for the situation I worked to create (nobody ever gave me anything), but I realize most folks are not and will never be in my situation.
Based upon everything that I've seen, jumping off when you can is usually the most certain course of action.
Waiting around while building up a higher future benefit may not be wise since the terms can change dramatically and quickly.
We've seen buyout offers in the past. The buyout helped only those who were close to normal retirement. Head count was reduced by about 15% and a game of musical chairs ensued. Some folks were left standing and walking out the door. Some were later brought back but some never were. This was of course on the eve of the recession, so for some people it was all bad.
Anyway, most of us could find something else to do that would help to finance our lifestyles and might be a nice change from what we do now.
It's a thought and one that I'm having since I could retire with pension as early as 11/1/16.
Waiting around while building up a higher future benefit may not be wise since the terms can change dramatically and quickly.
We've seen buyout offers in the past. The buyout helped only those who were close to normal retirement. Head count was reduced by about 15% and a game of musical chairs ensued. Some folks were left standing and walking out the door. Some were later brought back but some never were. This was of course on the eve of the recession, so for some people it was all bad.
Anyway, most of us could find something else to do that would help to finance our lifestyles and might be a nice change from what we do now.
It's a thought and one that I'm having since I could retire with pension as early as 11/1/16.
You don't think that a global debt catastrophe would have any effect on your pension benefits?
If such a thing comes to pass, we'll all be in deep trouble and those who are retired, IOW no longer productive, may bear a disproportionate share of the pain.
Ask any number of Greek pensioners what happens when things get rough.
If such a thing comes to pass, we'll all be in deep trouble and those who are retired, IOW no longer productive, may bear a disproportionate share of the pain.
Ask any number of Greek pensioners what happens when things get rough.
My employer gives you your last pay and a "have a nice day" as you go out the door. No pension whatsoever.
My employer has a very generous 401k plan, (up to 8% fully matched), I have no intentons on leaving, my company is not going anywhere, so aslong as I don't get canned, I should be okay in due time
Originally Posted By: sw99
My early retirement offer is roughly 43% of my average salary for the last 8 years. That would be something like 40k a year for the rest of my life. No inflation raises though. I would be 47 then if I choose to take it. I'm trying to decide if its best to take it and do something else or just stay longer. Each year it goes up 1.5% towards the retirement percentage. The only way this would be possible would be to find another decent paying job with good benefits. I'm not sure if this is considered good or bad retirement.
If you dont take the early retirement, you are effectively getting a 43% PAY CUT every year afterwards that you dont take the early retirement. Because if you do nothing and sit at home, you get to take home 43% of you salary for the rest of your life. Or, if you choose, you can go to work and get 100% of your salary, of which 43% is already guaranteed pay if you retire. So 100% work for only 57% more pay...
I would probably take the retirement, and then work on another retirement/pension somewhere else. At many employers you would qualify for retirement at 55, so from 47 to 55 you could work on a second retirement at another firm.
My early retirement offer is roughly 43% of my average salary for the last 8 years. That would be something like 40k a year for the rest of my life. No inflation raises though. I would be 47 then if I choose to take it. I'm trying to decide if its best to take it and do something else or just stay longer. Each year it goes up 1.5% towards the retirement percentage. The only way this would be possible would be to find another decent paying job with good benefits. I'm not sure if this is considered good or bad retirement.
If you dont take the early retirement, you are effectively getting a 43% PAY CUT every year afterwards that you dont take the early retirement. Because if you do nothing and sit at home, you get to take home 43% of you salary for the rest of your life. Or, if you choose, you can go to work and get 100% of your salary, of which 43% is already guaranteed pay if you retire. So 100% work for only 57% more pay...
I would probably take the retirement, and then work on another retirement/pension somewhere else. At many employers you would qualify for retirement at 55, so from 47 to 55 you could work on a second retirement at another firm.
Originally Posted By: fdcg27
You don't think that a global debt catastrophe would have any effect on your pension benefits?
The theme of my post was "get it while you can" because obviously, things can and do often change. I've got a $35b global company behind my pension. That doesn't make them invulnerable but it would take a lot to throw them into the PBGC. Plus, they closed the pension plan to new hires in 2000 so the obligation will shrink over time. I am not independently wealthy. I am depending on pension+SSA+401K. So far, so good.
You don't think that a global debt catastrophe would have any effect on your pension benefits?
The theme of my post was "get it while you can" because obviously, things can and do often change. I've got a $35b global company behind my pension. That doesn't make them invulnerable but it would take a lot to throw them into the PBGC. Plus, they closed the pension plan to new hires in 2000 so the obligation will shrink over time. I am not independently wealthy. I am depending on pension+SSA+401K. So far, so good.
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There is no "stamped in stone" correct answer here. I was looking forward to retiring at age 59-1/2, which is just a few, short years away. I am now getting cold feet and having second thought's about it all. Having a good job that is enjoyable with a good paycheck makes it hard to leave.
what I have observed is that when mass or multiple retirements occur fleets of flies / salesmen selling stocks / annuities / stock accounts flow to get the loot.
Yeah, lots of people keep working even though financially they can retire at 59.5
There's been a few older people retire due to medical problems. But those people had a good retirement package over 20-30 years of service, then took early retirement offer.
There's been a few older people retire due to medical problems. But those people had a good retirement package over 20-30 years of service, then took early retirement offer.
If you take early retirement try to be as debt free as possible the day you walk out the door. Learn to live under your retirement cap some how and stay busy. Very busy. Or, struggle with your finances, sit on the couch and have some french fries, a cigarette, a beer and a nice heart attack. Then live out your years wearing diapers and sleeping all day in a bed with 3 day old sheets while Judge Judy plays on the TV.
Originally Posted By: fdcg27
You don't think that a global debt catastrophe would have any effect on your pension benefits?
If such a thing comes to pass, we'll all be in deep trouble and those who are retired, IOW no longer productive, may bear a disproportionate share of the pain.
Ask any number of Greek pensioners what happens when things get rough.
^^^ this...when you have 10% annual inflation for 5 years...do the math
You don't think that a global debt catastrophe would have any effect on your pension benefits?
If such a thing comes to pass, we'll all be in deep trouble and those who are retired, IOW no longer productive, may bear a disproportionate share of the pain.
Ask any number of Greek pensioners what happens when things get rough.
^^^ this...when you have 10% annual inflation for 5 years...do the math
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I won't retire until 70-75. I'll wait until age 70 to take SSA since the payment is $1200 more per month for waiting 4 years. Then I'll keep working because I own a business and the rewards for my family are worth it. I will take more time off and visit kids etc. But working an additional 5 years could be worth > $1MM extra in my nest egg.
Besides...why be on a fixed income if you don't have to?
Besides...why be on a fixed income if you don't have to?
I was extremely blessed; I was able to retire at 51 with 100% of my final compensation . The only "catch"- if you can call it that-was that I had to agree to work a further 600 days anywhere I was needed by my employer over the next 5-10 years. I got all my days in at 6.5 years. After just knocking around for the next 18 months I accepted a job just for fun- something I really enjoy doing that gives me a little extra money for my automotive addictions.
JTK
$100 Site Donor 2025
Originally Posted By: Mr Nice
Does your employer give early retirement offer / package ?
I know my employer does when employee turns 60, but I don't know the details of offer.
What type of package does your employer offer for early retirement ?
On a case by case basis they do, but it's extremely rare. If you're within a year or two and they've decided you're no longer needed, I have heard of individuals being "bridged". I still have a traditional pension as well as 401K, but those hired after 2004 have 401K only. I've got 19yrs in.
For the fella considering it and he's not even 47, good for you! I'm almost 46 with 5, 10, 12 and 14yr/old kids yet. Bet you don't wish you were me. LOL!
Does your employer give early retirement offer / package ?
I know my employer does when employee turns 60, but I don't know the details of offer.
What type of package does your employer offer for early retirement ?
On a case by case basis they do, but it's extremely rare. If you're within a year or two and they've decided you're no longer needed, I have heard of individuals being "bridged". I still have a traditional pension as well as 401K, but those hired after 2004 have 401K only. I've got 19yrs in.
For the fella considering it and he's not even 47, good for you! I'm almost 46 with 5, 10, 12 and 14yr/old kids yet. Bet you don't wish you were me. LOL!
What kind of Govt/state/GIANT corporation jobs is everyone working here?? I thought most "pensions" or company funded retirements went out the door? Are these legacy plans?
I have a decent company 401k (4% matching with 5% extra a year) but that's it. What this also means is that I cannot just retire whenever I want, or i'll be hit with massive penalties when the time comes (still many years as I'm not even 30 yet).
I have a decent company 401k (4% matching with 5% extra a year) but that's it. What this also means is that I cannot just retire whenever I want, or i'll be hit with massive penalties when the time comes (still many years as I'm not even 30 yet).
Not aware of a retirement offer. All I have is my 401k.
If I was offered early retirement I'd be tempted to take it, depending upon the factors involved. If I could take that and go work a different job and have more income than before... or if I could work a different job and have about the same income... then I'd be quite interested.
If I was offered early retirement I'd be tempted to take it, depending upon the factors involved. If I could take that and go work a different job and have more income than before... or if I could work a different job and have about the same income... then I'd be quite interested.
JTK
$100 Site Donor 2025
Originally Posted By: HemiHawk
What kind of Govt/state/GIANT corporation jobs is everyone working here?? I thought most "pensions" or company funded retirements went out the door? Are these legacy plans?
There's a few private sector employers out there that still offer pensions, but it's rare. When my company did away with it in ~2004, they gave all current employees a choice to stay with the traditional, or go with the "new" slightly enhanced 401K only, touting it's "portability", etc. If you modeled it and planned on staying with the company, the traditional pension was the way to stay. If you do get ousted early, they can offer you a buyout lump sum instead of waiting to collect pension payments later in life.
Like said, any of it can go away at the blink of an eye. I try my best to stay on top of managing it all, but it's almost like imaginary funny money to me at this point in my life.
What kind of Govt/state/GIANT corporation jobs is everyone working here?? I thought most "pensions" or company funded retirements went out the door? Are these legacy plans?
There's a few private sector employers out there that still offer pensions, but it's rare. When my company did away with it in ~2004, they gave all current employees a choice to stay with the traditional, or go with the "new" slightly enhanced 401K only, touting it's "portability", etc. If you modeled it and planned on staying with the company, the traditional pension was the way to stay. If you do get ousted early, they can offer you a buyout lump sum instead of waiting to collect pension payments later in life.
Like said, any of it can go away at the blink of an eye. I try my best to stay on top of managing it all, but it's almost like imaginary funny money to me at this point in my life.
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