During economic downturns, some companies offer early retirement packages to reduce their number of paid employees. If your employer asks you to consider stepping away now, the decision is not one to make lightly. I thought it would be helpful to discuss the pros and cons of an early retirement offer.
First look at the details of the package: Start by checking if severance pay is included.
Next, consider your health insurance needs: if you are 65 or older, you are probably eligible for Medicare. If you are younger than 65, you’ll want to find out if health insurance benefits are part of the retirement package. If you need to purchase health insurance yourself, look at the costs associated with this option.
Would you maybe get another job? If you’re interested in looking for another job, you’ll want to consider the likelihood of finding one.
Next understand the consequences of not accepting the offer: Companies trying to reduce their labor force may be in a difficult financial situation. In this case, turning down an offer now could lead to a future dismissal with fewer benefits. Factor in Social Security benefits: If you are able to start receiving Social Security payments, it’s worthwhile to consider the implications of doing so.
Look at your financial situation: Consider how early retirement would affect your retirement finances. Is early retirement the best choice for you?
Think about the lifestyle you will have if you retire now. For more information go to yoursafemoneyshow.com.
First look at the details of the package: Start by checking if severance pay is included.
Next, consider your health insurance needs: if you are 65 or older, you are probably eligible for Medicare. If you are younger than 65, you’ll want to find out if health insurance benefits are part of the retirement package. If you need to purchase health insurance yourself, look at the costs associated with this option.
Would you maybe get another job? If you’re interested in looking for another job, you’ll want to consider the likelihood of finding one.
Next understand the consequences of not accepting the offer: Companies trying to reduce their labor force may be in a difficult financial situation. In this case, turning down an offer now could lead to a future dismissal with fewer benefits. Factor in Social Security benefits: If you are able to start receiving Social Security payments, it’s worthwhile to consider the implications of doing so.
Look at your financial situation: Consider how early retirement would affect your retirement finances. Is early retirement the best choice for you?
Think about the lifestyle you will have if you retire now. For more information go to yoursafemoneyshow.com.
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