I've been anxious to retire for quite some time now. The problem is that so many influencing factors have changed making the decision more difficult than one could imagine.

My daughter has extended her education requireing me to provide her with Health Insurance for at least an extra two years longer than I had planned. (She's due to recieve her Masters this December and has no job prospects as of yet) My company is rapidly eliminating all retiree benefits, including access to affordable Health Insurance which I desperately need for my wife until at least 2017. The list just goes on and on.

My employer is going through bankrupcy proceedings and has just offered us an opportunity to take a buyout. Here's the situation...
* I am fully retirement eligable and I really hate the hours I'm working.
*There is a buyout plan available through the end of 2012 that will net me an extra year's pay if I leave now, payable as an individual annuity spread over several years.
* My 401K has reached my goal level and is ready for investment.
* It is fairly certain that the company will eliminate all retiree Health Care benefits within the next twelve months.
*My retirement income will be less than 50K per year.
* I don't have any marketable skills for this fast paced digital world but I do hope to find at least a long term part time job to help offset Health Insurance costs, a job that I can commute to by bicycle of course.

The big advantage to leaving now is the extra year's pay. I have until the 19th of this month to decide if that extra cash, payable only as an annuity for now, is worth the leap into the great unknown. I was hoping for the opportunity to make this decision before the current buyout plans expired at the end of 2012. Now that my wish has materialized, I'm scared to death that I'll make a poor choice.

I looks like I'm going to have to pedal home the long way this evening, I gots a lot of thinking to do!!

Your current age?

Will you "own" the annuity - i.e., it will be issued to you as a policy through an established annuity company, or is it really just a monthly payment from the company? If so, is it subject to the financial vagaries of the company?

Will it be a joint and survivor annuity? This will reduce the monthly payment noticeably. Or will it end if you die?

Have they told you how much per month for the annuity.

Typically, one year's salary spread over several years will not be a whole lot per month. Any chance of a lump sum?

Why do you need to extend your health insurance for your daughter? She is finishing her MA, and there should be a job for her somewhere. I don't know whether or not it is possible to extend it in your state if she is no longer a student - her age? Can she help pay, at least?

If you pass on the buyout offer, how confident are you that you will still have a job there a year from now? IMHO, your choice is between two unknowns.

I'm 61, the bride is just shy of 59.

The annuity will be tacked onto my Defined Pension Plan I think....I have not yet been presented all of the details. No lump sums due to the bankrupcy proceedings.

I still feel responsible for my daughter's well being until she can fend for herself. She will be instructed to look into Medicaid, however.



Bingo! You've hit the nail on the head!

My bride agrees with me that the time is ripe for retiring to a part time job someplace with more humane hours. I think she is correct. We're even thinking about taking a road trip to California to visit our oldest daughter. Nothing like starting out the next phase of our life by jumping into debt right away!!

You present your situation in such a manner that I'm reading it as a choice of staying with a ship that is clearly sinking (in which case you will get wet). Or, taking a life raft of unknown sea worthiness (in which case you might get wet). Yes, it is scary stuff, because it really is more than just getting wet. Have you spoken with your wife and daughter about the choices you face and what are their thoughts?

Scary indeed.

My wife seems to be on-board with me retiring. She seems to have some blind faith in my ability to take care of us no matter what. I'm not quite as confident as she is.

Man, does that sound familiar.

Look at it this way. You were looking for a job years ago when you took your present job.

The good news is that you don't have to make the decision today. You have some time to work with.

Since you are thinking that you want to continue working even if you leave your present position, now is the perfect time to start looking hard for your next job. I have heard that it is much easier to get a job when you still have a job as opposed to trying to find a job after losing your job.

If you find your next dream job in the next two weeks, would that make your decision a little easier?

Things do not sound that good if you continue working so join the ranks of the unemployed and get a fair screw out of doing it.

Different situation over here on retirement with state pensions- welfare benefits and health cover. Mind you- I have been paying for it all my working life so it is not free.

Recently retired and if I knew how hard it was going to be- I would have done something else. Not grumbling as I realise cost of living is different but I get about 1/3rd of your 50K. However with no mortgage- no HP. no bills other than living expenses- I am surviving quite comfortably. I cut the cloth to suit my needs and I do not miss what I no longer have.

But I am so busy around the house- with the grand children and family that I need a holiday. Luckily I can afford that with with the amount I do not have to spend going to work so there will not be a problem.

So write out your resignation after talking to your boss and screw the company for as much as you can and retire while you can enjoy it.

And don't forget the N+1 as your retirement present either.

Not sure how the state economy is in NY but here in Washington state if you're over 18 and don't have kids then you're pretty much not going to get Medicaid.

My daughter decided she didn't want to pay the required amount to be enrolled in the health insurance her college provided. (Is health insurance available for your daughter through where she's working on her Master's?) We did some research and found an individual policy through Regence that will cost her $95 a month as opposed to $800 per semester for the other plan. If your daughter is youngish and in good health, this might be something else for her to look into. (I'm not in any way associated with Regence but this seems like a darned good deal if it works for your daughter.)

I have faith that you will make the best decision.

My dad lost his job when I was a Senior in High School, so I had to find the money for college. Sounds like your daughter has gotten her Bachelor's. You may have to let her go at this point and fend for herself. The University may have a good health plan.

Any job should have more humane hours. That schedule you're on really should be outlawed.

+1 on N+1!

Until your daughter finds something more suited to her education, Starbucks has good benefits, including medical. I know, no prestige for her there, might be hard for her to swallow, but if she's old enough to be finishing her master's, she's old enough to begin taking care of herself.

Reid

As a former executive who has "downsized", and been both the bug and the windshield on different occasions, the primary thought I would offer is >>>>>>> THE FIRST OFFER YOU RECEIVE TO DOWNSIZE/RETIRE/QUIT EARLY/BE FIRED/ WHATEVER...... WILL BE THE BEST OFFER YOU WILL RECEIVE.<<<<<<


That they have offered it, that you are eligible for it...let it speak volumes to how much you are 1) needed and 2) wanted.

FWIW.

Agree with Mono-- You have been offered it- take it. The next batch of downsizing will not be as generous and from previous comments by you--the company does not sound that good to stay with.

I found it very hard to take the final decision to retire and I could have worked on for several years. Once I made that choice I could not wait to get out the door and I realised how poorly I was being treated and put upon by the management.

I'm familiar with "helping the kids" My oldest is a professional triathlete and personal trainer. He can only do it with my support. He makes enough to live on, but I pay his travel and entry fees. I was in the "serious generation"... get your education, then a job, then a mortgage, then a family... fun is when you retire. I hated being in that box. I'm living my youth again through my triathlete son. My second son lives in a group home and has serious issues. I got him a cell phone mostly so we could keep in touch. We get together every Saturday morning for breakfast and once a month we get a haircut after breakfast... I give him spending money every month. If I want him to wear jeans with no holes, I have to buy them. He came on a 4 day canoe trip with me in June.

These are not sacrifices for me. I have been blessed. And I wouldn't trade it for anything.
If your daughters are respectful and appreciative that's a good start. Nurture the heart to heart relationship
No decision of yours will be "right" or "wrong". Just make your mind up, and do it. No looking back.

If you don't take care of your self first you won't be able to help others. We put two "kids" through UCLA and helped the other to start a business. The "Kids" have to deal with life sooner or later. They are now on their own and doing OK.
Take the offer and don't look back. Remember when we started out we jumped first and then looked, wife, children, mortgage, job, Etc, we just did it and learned as we went. At least you have a base now, everything will turn out for the best.

Take the offer and look at it as a door opening, not closing.

I just retired this summer and our youngest daughter started grad school at Duke, she gave up a fantastic job with stunning benefits with San Francisco Fire to enter the Physician’s Assistant program. We paid for under grad at Cal, she is doing grad school with loans, like her sister did for medical school. She will be in debt after two years, which is OK; many of us have been there.

Best of luck

Yeah, so when my package arrives via US Mail...I'm taking it to my financial guy.

I have an appointment scheduled with an Elder Care laywer regarding Trust Funds, I am awaiting a callback from my financial guy regarding investing my 401K (we've already met often...just need to sign papers), and also have an appointment with another financial guy for a second opinion.

As of 11/01/2012, I will be between jobs!

Been there done that. The big worry is what would happen to retirement and health care. I took a buyout clear back in 1993. The big thing was it locked in the old retirement and health plans. My retirement is about half of what my pay was at the time. For a while after that retirement went down to about 1/3 pay, and now is only based on 401K. On medical I of course am on Medicare, but I get my Medicare premium paid back at 80%.

Bottom line here is the longer you wait probably the less you will get on all counts.

OT, We have missed your kind comments and great pictures. Hope this all works out for you. It was scary when we had to make "the decision".

I bet that you are more employable than you might currently think. People need workers who can think and have a good work ethic. I bet you have both abilities. Get some distance from the sinking ship and trust that you can do more than greet at the box stores!

Good plan to review the "package" with a trusted financial advisor. I went through a similar situation a few years back when offered 1 year lump sum salary which I was allowed to roll into my 401k, also a monthly cash "bridge" to my 62nd birthday. After much discussion and prayer with wife, financial advisor and friends I took the offer and never looked back. Following workforce reductions in the company did not include the 1 year salary provision.

It is a big decision but there is lots of opportunities to be had when you are not hampered by having a regular job.

Whatever you decide I wish you Good Luck!

Charlie

I'm a firm believer in Clark Howard's advice ... have a "fee only" financial planner look at your situation. Not somebody who wants to sell you anything.

You'll do fine. At 61, I am also looking forward to retirement. It's a few years off still.