Early Retirement

Just sort of need to tell the story in writing, so thanks for that.

So, overview of "voluntary separation plan" came through today.  

Looks like a pretty standard package -- years of service based severance, benefits run until they finish paying out severance per normal payroll and a lump sum "transition payment."  The only real surprise is that I'd be eligible to be rehired at the end of the severance payout, and could go back as a contractor within 6 months.

Makes me wonder if it's a strategy to turn all the senior folks into contractors.

With my savings, it's enough to get me out the door, turning 56 next week.  Been in the business 34 years, 3 employers.  Not a lot of joy in the job these days and sticking around while this goes through the organization like a bunch of Epsom salts won't be any fun.  And of course, there's no guarantee you don't get laid off if you don't take it.

And with all the COVID impact, this seems like a good time to distance myself from the day to day thrash I've become accustomed to.

And, SWMBO needs a part time practice manager at her veterinary clinic-- working there should free her up to see more clients.  Need to make sure that doesn't turn into the kind of toxic situation for employees we've seen at some other clinics where the the practice manager is the doctor's spouse.

I'd jump on it with both feet.

I'll offer congratulations.  Early is relative.  Just as retiement is.  

So enjoy it!

do it!  congrats!

Awesome! This is a great situation, from my perspective. 

My friend just got a voluntary severance offer - actually, I think the entire company (and not a small one) did. He's only 30, his wife just had her pay cut, and they have a 9 month old, so he's not going to take it, but it certainly made him look hard - I'd never imagine one that good for a 30 year old. 

Go for it!

Not a lot of joy in the job these days

This right here says it all.  Take it, and congratulations.  You can always find something else (practice manager or something new) that you enjoy.

My situation...

I'll be 56 at the end of June - next January, I'll be the same age my dad was when he retired  - I'm a few months older now than my brother was when he died suddenly. So, I'm watching with interest.

To answer your question, yes, it's almost certain that their objective is to get the older people off their books.

Considerations...

If we have a significant resurgence (probable), money may dry up forcing companies to be less generous.  So, there's an incentive to "get it while you can".

Health care and life insurance policies will likely be much higher once the actuaries bake epidemic risk into their calculations.  Even after COVID-19 is resolved, they'll have to be ready for COVID-20 or whatever may come next so BYOI jobs will soon be less attractive relative to jobs that provide insurance.     

The big issue with early retirement that I see is medical coverage.  Paying for it yourself could be painful.  If your wife's work covers that, you are golden!

Enjoy! 

Stay productive / active (I think this is a mistake many retired people make).

Karacticus said:

  The only real surprise is that I'd be eligible to be rehired at the end of the severance payout, and could go back as a contractor within 6 months.

Makes me wonder if it's a strategy to turn all the senior folks into contractors.

 

 

Damn right it is.  It allows them to hire you, and only pay what they need you for.  Also, it lets you contract with other companies (like your wifes) to make use of your skills.

I'd be out of there so fast, the vacuum would suck the toupee off the bosses head.

I turned 50 last month and I like my job, but if the boss offered to pay me to leave I would go, but would either look for a new job or have to make some life changes. 

My wife worked in my practice, and while we had lots of employee problems, that wasn't one of them. It's all dependent on the culture of the practice and the employees. While I agree that it can be a problem in certain circumstances, it's not unusual for both spouses to work together in a family business. I wish you well.

I'm going to turn 65 in a few months, but not working isn't an option.

After getting wiped out in the recession, I'm going to have to work for as long as I can. Retirement isn't an option.

I haven't worked since the middle of March. I've used up all of my PTO, so I'm still going back on the 24th.

After that, I'm not sure what's going to happen. Good thing I have life insurance. I hope I get through this.

Insurance broker (a local independent agency) we really enjoy working with says life insurance rates are all headed for a pretty big bump as of July 1.  Going ahead with purchase of some term life to cover current outstanding debt.  Looked at cost of some cash value policies, and the return on those was 3.5% over twenty years, so that was a nope.  Nice think to use a time value of money calculator on though.

Also regarding life insurance, at age 56, there's a pretty big premium bump between a 15 and 20 year term versus 10 to 15 -- not that that should be a great surprise to anyone.

The veterinary clinic doesn't currently offer health insurance, but does offer vision and dental.  We were looking into health insurance before the COVID E36 M3 hit the fan and then that put it on hold while the initial panic/impact settled in-- looks like our needs are going to drive us offering something before the end of the year.  Same sort of thing drove us offering a 401(k) to the employees.

It's still not cheap, but it's looking like at least the deductibles will at least be lower than the (extremely) high ones offered by my current job.

Streetwiseguy said:

Karacticus said:

  Makes me wonder if it's a strategy to turn all the senior folks into contractors.

Damn right it is.  It allows them to hire you, and only pay what they need you for.  Also, it lets you contract with other companies (like your wifes) to make use of your skills.

My father's employer (Fortune 500, blue chip company) offered these voluntary separation packages and he jumped on it in a heartbeat, as did a lot of his coworkers.

They had a rule in place that you could be hired back as a consultant, but you couldn't make more than your salary was before leaving. 

So a bunch of the guys went back to their old jobs and made as much money as they had previously... they just did it in 8-9 months, rather than a year.  And then they had 3-4 months off every year.

Your offer sounds like a win, and given the unstable situation, I'd would take it in a red hot minute.  Congratulations!

In reply to Floating Doc (Forum Supporter) :

If only you were available to do small animal practice in Iowa-- everyone is dying for help here.  To tell the truth, most of her competition is actually dying (of old age).

In reply to Karacticus :

I'm an experienced relief vet, too.

So many reasons that won't work, from air travel to not having a license outside of FL.

In reply to Karacticus :

One of the realities is companies are dumping their older more expensive employees.  When bodies are surplus they will pay to get rid of you. Once gone they can hire your replacement cheaper. 
One reality is the actual impossibility of being hired at your age.  I had a very well documented resume with fantastic letters of recommendation.  I worked hard for 5 years trying to get back into the field.  Networked, phones, sent resumes out mail, Email, and in person. 
Dressed up, ready for an interview,  as I cold called my way through every company in a 3 state area.That's not cheap. Wear and tear on clothing, car etc.  

When not doing cold calling, took every course offered in computers, various sales techniques. Technology classes, etc.  used the VA,  State unemployment agency, Private employment agencies. 
 When I finally think that I've got a chance they hesitated unwilling to hire anyone near retirement age or actually over 50. Often leaving the post vacant for many months.  

aircooled said:

The big issue with early retirement that I see is medical coverage.  Paying for it yourself could be painful.  If your wife's work covers that, you are golden!

Enjoy! 

Stay productive / active (I think this is a mistake many retired people make).

Hopefully, if one qualifies for full retirement, they get healtcare as part of the retirement package.  I know I will.

An oil company that shall not be named is doing an "auction" for buyouts. You submit a sealed bid on what it would take to buy you out and they collect all of them and then pick what's best for the company. 

As soon as the kids are out of high school (4-6 years depending) Mrs. Deuce will start to consider retiring. Medical is the big issue. And she likes her job. 

Interestingly enough, my employer sent me the same offer this morning, but I haven't received the details yet.  I'm not sure I can do it right now, not with my 16 year-old daughter ready to enter college in a couple of years.  I will look at the offer when the details get here.  I've already spoken to one of my colleagues that will be taking early retirement.

In reply to alfadriver (Forum Supporter) :

No medical coverage in retirement until Medicare kicks in.

Last year's retirement incentive was to retire before the end of the year, because for any retirements past that, the company would no longer subsidize your retirement health care.

In reply to Karacticus :

I just glanced at your profile and realized we probably work for the same firm.  I'm in the Melbourne, FL location.

In reply to jstein77 :

Yep-- been there once to deal with some weather radar folks.

Didn't have to enter the rental car from the passenger side because of an alligator on the driver's side.

I'm 99.9% sure I work for the same company as you guys as well.

Congrats on the Early Retirement.

Karacticus said:

In reply to jstein77 :

Yep-- been there once to deal with some weather radar folks.

Didn't have to enter the rental car from the passenger side because of an alligator on the driver's side.

Really?  I was the ME on the WRP-2100 development.  You'll have to DM me with who you came down to see.