Question for those retired
 

If your business where you've worked for 40+ years asks you if you'd like to stop working, ride your bike at your own schedule, play all the golf you'd now like, spend time catching up on your own projects and start doing all those things you've thought about doing but didn't because of work schedules.........but if you stay things will probably be a lot different than what you've experienced in the past and it's quite possible your role might also be a lot more challenging because there will be fewer people..........and they also told you, if you leave we will compensate you with a very nice one time payment and pay all your medical premiums for a year............and after that year we will give you a healthy stipend towards your medical premiums for you and your family until you are 65..........and you need to let us know your decision within a couple weeks.........


I know everyone's experience is different but based on your retirement experience what would you tell them?

I'd say not yes, but hell yes!

If you're not ready for full retirement, you might explore the possibility of part time work for them as a contractor after you officially retire. My perception is that this is a win/win situation - they get a worker they know and trust and for whom they don't pay benefits, and you keep your retirement benefits plus have the added income. I don't know the details of how this works, so you'd have to make sure of those.

Not retirement experience but take a look at the IRS and Dept of Labor and what they are targeting. This article is by attorneys but some good writing about the situation. Make sure you're not in this scenario.

Is Your Company on the Independent Contractor Hit List?

I am not retired yet, but can say that I've been waiting for an offer like that (it will never come, though). I'm financially able to retire at any time, but continue to work as I am still finding enjoyment in it. Any offer would be gravy. For you, I'd suggest running the new data though a scenario calculation to see if it adds up for you. I assume that the offer will not be repeated if you decline now.

Take it.

I worked for the same company for 47 years, and retired at the age of 70. Im now 77. With the Company retirement, and SS, my wife and I live a quiet life without touching anything we have saved. Now about retirement. I of course am my own boss. I find that he is very understanding, and one hell of a nice guy. He lets me do basically anything that I want to. What he allows me to do is ride about 30 miles every other day on my bent or trike. This is good because---------------if you set you rust. Yup retirement is good!!!!!

Time is short, use it how you like. I know some who are lost without their work, it defines their life.

I was handed a box after 23 years. The last few were in your downsize scenario. I left with a grin that remains.

Now I ride every day... after it warms up.

If you have the resources then retire.
If you having trouble of letting go, then it sounds like a good deal

Time to go. After that many years and they are upping the work load? Not worth the stress and you sound like you have a few hobbies to keep you busy. Enjoy retirement...

Getting paid and not have to go to work is great... If you actually get enough money... If not then you can still work elsewhere part time and end up with a full time pay with both incomes which is OK too...

You've been there 10 years too long.

Everybody's got their own drive and passion level, so it's your decision exclusively.

Just as input, I retired early and have financial challenges because of that, but in NO WAY would change my decision.

I would have interrupted them during the description of the offer and asked "where do I sign?".

Your company is obviously downsizing, and offering a buyout package. Everyone's experience is indeed different.
Based on my experience, I'd recommend (as suggested above) running some scenario calculations.
One of the better ones IMO.
FIRECalc: A different kind of retirement calculator
There is a forum of early retirees associated with this calculator if you'd like to do do more in depth research.

Best of luck

Run the numbers, but I'd sure be tempted. It seems like they're sure sweetening the pot. Once you're retired, you can always decide to do something else.

When I was 58, I had a nice engineering position at a company that abruptly shut down. Since this came in December 2008, right as Great Depression 2.0 was coming into full swing, my investments had taken a big hit at the same time. With both sons still in college, I was not emotionally ready to retire, although in retrospect I might have been able to squeak by financially.

I chose instead to hang out my consulting shingle, and, after a lean 6 months to spool up my practice, I did well enough at that to avoid dipping into savings while our investments recovered. I have since cut back on my consulting activities and taken what amounts to about a 3/4-time position at a local university, where I am making less than half as much money as I used to, but having more than twice as much fun doing it. I work Saturdays to accommodate my grad students' day jobs, but I get Tuesdays and Thursdays off to help provide day care for my grandson. At this point I plan to keep working until age 70, and then re-evaluate the situation. One of my buddies is 75 and still teaching full time (and then some), because he enjoys his work and remains popular with the students.

It is my understanding that once the first generous offer is refused, the 2nd offer is not nearly so generous (like - "Pack up your desk. Goodbye.")

Only you know whether your finances allow you to retire now. I retired at age 55 from the State of CT. I had/have the benefits people used to get before we turned the country over to the 1%. I've been retired for almost 15 yrs. and can't imagine working again. The thing I like best about retirement is how it has changed my perspective on day to day living. I am no longer "on the clock" doing anything in life. It really is a wonderful way to live.

It's difficult to advise someone one doesn't know well. Obviously your financial circumstances are your own affair, and you're the best judge of them. More to the point, though, people differ in how comfortable they are with the whole idea of "retirement". I know people who are candid enough to admit that they fear it: their self-esteem is so bound up in what they do, and the fact that they feel valued doing it, that they don't know exactly who they would be without it. I recently had a conversation about this with a friend of mine who is a consultant physician. She said, with commendable honesty, "the truth is I like being important." She won't be retiring anytime soon.

in my own case I had the opportunity to take a payoff when I was 56. I took it. I haven't regretted it, but there is no denying that there's an adjustment to be made, and that much depends on what you think is necessary to create meaning in your life. Some are happy just to fill their time with whatever pleases them. That's great, but for me it's limited, there's a point at which simply pleasing oneself starts to feel a bit empty. So in my case I've found it useful to make myself useful from time to time by volunteering in various roles. However, I'm no Mother Theresa. I have been able to be gloriously self-indulgent, taking mammoth bike tours for up to two months at a time, training for racing, reading a lot of stuff I never had time for, loads of other things. Life is short. There are probably things you want to do. I'd say take the opportunity, and do them.

If you can afford it, go for it. TODAY is the best day of the rest of your life!

Just think it all through and really evaluate your situation. And go into it not trusting them to follow through on everything too much. I still work but I have retired from the military. Been out 10 years and every year more of our "benefits" go away or get more expensive. The latest is our meds. Now instead of stopping at my pharmacy by my house to get my meds I have to make a 60 mile round trip to get on base and use the pharmacy there. The other option is a mail service that has been a total nightmare to even get one prescription filled. Or of course, I can continue to use my local pharmacy and pay for it all myself. Yet another slap in the face to a disabled vet, LOL. So go into with your eyes wide open, evaluate everything, and plan for the worse.

I invest heavily in my own "final" retirement so that I don't have to rely on anyone else. Good luck with your decision.

If you can make it money wise do it!

I retired in my 50's. I had always planned to retire early. I seldom regret my decision.

That sounds like a threat. That would mean they don't want you to stay. It would be difficult to work where they don't want you.... so do you really have a choice?!?!?

If a token "check" matters at all.... it won't be helpful.

Insurance premiums are my number one expense. But I'd guess even a small amount towards an unaffordable private policy... is better than being fired and getting nothing. Just a thought. What about life insurance?

Often times people make decisions based on "feelings". So when things don't "feel right" they hesitate or do nothing at all. An unexpected retirement should feel similar to a car crash. What you should be feeling.... is called fear. Find a knowledgeable friend or family member to talk about this with. Sharpen some pencils and figure the math.

+1

I retired early and it was a great decision. I'd say two things are required to make this work.

1) You must be able to afford it (or have some option to fill in the financial gap)

2) You have to be a person who can find their own interests to fill their time

#1 was a stretch for me, but doable. #2 was a trivial in my case so retiring was right for me.

dave

I retired a year and a half ago at age 62. In my case it was not unexpected and my wife and I had been planing for it for over five years. We crunched the numbers and maximized my deferred compensation account for the last five years. I worked for the state of NY for 32 years and as a result have a defined benefit pension and once I was able to hit the required number I had no qualms about pulling the plug. My wife also has a defined benefit pension. That along with SS has provided enough income so that we haven't had to touch our savings. My wife went back to school and got her masters in social work. She's currently working part time as a therapist which she finds very rewarding and is able to manage her schedule to suit her.
I'm able to use my accrued sick time to pay for my health insurance so that is covered.
When all is said and done I'm actually accumulating more money than when I was working. I am, admittedly, a man of simple pleasures so our overhead is quite manageable. I did however purchase my dream bike as a retirement gift to myself, Pinarello Dogma F8.
I totally enjoy the freedom of being able to do what I want to do when I want to do it. You have to decide for yourself but if you can swing it financially I say go for it and don't look back.