Early Retirement

Karacticus said:

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.

bummer.  

Seems like they should offer that just to get you off the books in this difficult time...  Alas.  

None the less, I wish you a very happy and healthy retirement from your current position!   Whatever you end up doing!

You are getting a much better deal than I got.  But mine wasn't exactly voluntary.  I was the only one that got severance out of the group let go.   That was just over 1 year ago.  They have let more go in small purges since then.  I talked to a former coworker yesterday and my former supervisor told the environmental group they should get their resumes updated.   This company could not get business during the recent boom.  

I think I worked for that company in my first job out of college, a long time ago.  Still joke that I spent a decade in Iowa one year.  (seemed like it anyway)

I was laid off from a big company in the Great Recession.  They were nice enough to put me through an "executive outplacement program" even though I was in no way an executive.  One of the things that struck me was that none of us could get health insurance on the open market.  This was before the ACA.  I was in the program with a bunch of senior level managers with big houses in the suburbs and real assets to worry about and enough money to pay for insurance, but it seems once you hit about fifty no company will write you a policy. 

I just ran into that again when I needed a month of coverage this summer before an ACA policy kicked in.  Went through the whole application process and was denied on a "preexisting problem" that I didn't know about and don't think is real.  I think the doc coded a kidney problem for insurance purposes.  I bought travel insurance that included medical and went to Spain for 2 1/2 weeks.

Figure this out before you make the leap.  The ACA may not be in place much longer.

Honda offered my father in law a pretty good early retirement, he's not sure what he's doing but the numbers he got would have made me jump at it. Apparently being far enough up the maintenance chain to work a desk pays better then I ever knew 

A friend had a similar early retirement package which he took. 6 months later he's back as a contractor, making more money and working less hours. It seems when they let go many senior employees, they suddenly found a serious lack a skills in the younger ones still there.

Don49 (Forum Supporter) said:

A friend had a similar early retirement package which he took. 6 months later he's back as a contractor, making more money and working less hours. It seems when they let go many senior employees, they suddenly found a serious lack a skills in the younger ones still there.

I believe this is a pretty likely outcome.

Thanks everyone for the emotional support provided through this thread-- I'm capable of being convinced this will be a positive change, but it's a change to be dealt with regardless.

My boss isn't going to be happy about me taking them up on the offer though!

This happened to a relative a couple years ago before the Wu-Tang Flu (they should rename it that) so it is nothing new. Basically everybody over a certain age was given a couple options and inevitably forced out with a severance package. If anything, I'd take your offer while you still can and run. Nobody ever complained that they worked too little hours.

Zombie thread resurrection.  I took my company's early retirement package back in June and have had 5 months of yard work (which looks pretty good right now).  I sent my resume to a local contracting firm to see if I could pick up some part time work, and ended up getting hired full time by a company that was asking them for help.  I'm not sure why it's easier to find a job when you're not looking for one than it is when you are.  So now I'm unretired.

jstein77 said:

Zombie thread resurrection.  I took my company's early retirement package back in June and have had 5 months of yard work (which looks pretty good right now).  I sent my resume to a local contracting firm to see if I could pick up some part time work, and ended up getting hired full time by a company that was asking them for help.  I'm not sure why it's easier to find a job when you're not looking for one than it is when you are.  So now I'm unretired.

My BIL was just like you.  After +30 years doing computers, and then 6 months of doing nothing- he's now a fork lift driver out of boredom.

I got a similar offer; retirement is 2% of pay for every year of service, plus $25,000 to go away.  42 years = 84% but burn less gas, no lunches to make etc. etc.

Went back 5 years later as a Contractor, part time (20 hrs/week).  $50/hr. no benefits or retirement plan.  Contractor money comes out of a different pocket, easier to find funding but you're the first to go in a pinch.

I'm OK with that.

When I stop private practice, I'm not going back.  Part of my retirement plan includes working part time at the Dental School or the VA, but that's not in my control.  If they hire me, great!  I'll work there unless I don't like it.  If they don't hire me, great!  I've got plenty of keep myself occupied.

Update--

Today I participated in a medical study for $50!  Woohoo!-- that post retirement dough is just rolling in!  All I had to do was drive down to the university, answer a questionnaire and sit for an MRI of my right knee.

Unfortunately, I don't think that will cover my out of pocket for the MRI of my right shoulder next Tuesday-- the doc is looking to confirm rotator cuff issues.

On the employment front, both my former supervisor and another at my company have asked if I'm willing to come back as a contractor in the spring when I'm eligible to do so.  I didn't say no, but I don't think I'd want to do more than three days a week at what is essentially my former job.

Potential also looks quite high for a really interesting job at an aircraft OEM where I know the engineering director.  He's saying he intends to open a req that would fit my qualifications next month.  It's six driving hours away, but I'm pretty interested in it.   That's 2 hours closer than the last time I took a job in a similar situation.

I agree medical insurance is the biggest hang-up when it comes to early retirement.  While I'm hoping to retire at 60 (10 years from now), it will be somewhat dependent on the medical insurance situation.   That is also one reason why I am currently maxing out my HSA contributions - so I'll have something of a buffer if I have to sign up for some sort of independent high deducible plan until I can sign up for Medicare.

As a traveling contractor for longer than I had a "real" job, I've talked with a lot of guys that took an offer like that... 100% of 'em said it was a good move - most said best thing they ever did. Even the ones that it didn't work out as well as they hoped, didn't regret it. Do look out for the cost of health care. Before universal was shoved down my throat, my self paid Blue Cross had gone from $75/month in 98, to $250 a month in 08. Got married, joint was $800/month. When we were forced into the "universal will fix everything" it jumped to $1800, and was headed to $2200. Per month. With a $6000 deductible. For essentially catastrophic only coverage. It forced me off the road and a full tim job, just for health insurance!

03Panther said:

As a traveling contractor for longer than I had a "real" job, I've talked with a lot of guys that took an offer like that... 100% of 'em said it was a good move - most said best thing they ever did. Even the ones that it didn't work out as well as they hoped, didn't regret it. Do look out for the cost of health care. Before universal was shoved down my throat, my self paid Blue Cross had gone from $75/month in 98, to $250 a month in 08. Got married, joint was $800/month. When we were forced into the "universal will fix everything" it jumped to $1800, and was headed to $2200. Per month. With a $6000 deductible. For essentially catastrophic only coverage. It forced me off the road and a full tim job, just for health insurance!

C'mon man, you cannot call ACA universal healthcare. That is just a joke and a flounder - and fwiw, I'm pretty wholeheartedly against both the ACA and universal/single payer/whatever you want to call it. 

not intended to flounder, but i won't get caught up in whatever they called it. I know what it cost me. I just want to make sure he knows how expensive health care is now, for a private individual. I prolly should not have let my bitterness show, but $900 + % (think that's what I worked it out as, maybe not) increase, when my income went up 23%, does make me just a bit bitter. I my not remember the names that were used (except that I was not given a choice,) but I know the amounts. I can erase (edit) my personal opinion, if it will make anyone feel better, but the amounts may not make sense.

I'm kinda wondering what was covered on a policy that cost $250/month.  As far as health care, I'm lucky I've got that covered by the Air Force.  No worries about medical coverage whenever I retire.

For reference, I work for a pretty big company (10,000+ employees) and my annual health insurance premiums are $8,000 for a high deductible plan. My deductible is 5 grand. And that's just for me. My employer covers about 85% of the premium, but that E36 M3 is expensive.

The ACA was intentionally gutted during the rollout to make it unappealing. Mission accomplished. 
 

I support a true universal system because in my view it's a boon for small businesses and self-employment. It's a lot easier for a mega-Corp to subsidize the cost of insurance than it is for a small business so the small business is less competitive in the hiring process. The current cost makes venturing out of the corporate world much more expensive and is a deterrent to self-employment. 
 

I never see anyone advocating for privatizing the military, police, or firefighters. I guess I just don't see the value in my $8000-$13000/year being used to pay Humana's CEO's $19,000,000 salary.

In reply to AaronT :

Agreed.  I would propose many older adults of retirement age are delaying retirement due to healthcare costs.  Which in turn transfers that burden onto their employers.  I have to wonder how much money even larger corporations could save if healthcare was a less volatile cost every year.  How much would the employment system change if younger workers were not up against a slow moving ceiling of older workers. 

Of course, the elephant in the healthcare system is the system itself, which has been set up and tweaked for decades in order to make the most money from the current system.  Shifting that momentum will not be an easy or quick process.  Everyone wants the answer to be simple and easy and that is just not realistic. 

docwyte said:

When I stop private practice, I'm not going back.  Part of my retirement plan includes working part time at the Dental School or the VA, but that's not in my control.  If they hire me, great!  I'll work there unless I don't like it.  If they don't hire me, great!  I've got plenty of keep myself occupied.

My brother ( an MD) works 2 days a week in Northern Minnesota  from Texas.  I can't imagine what they have to pay him to entice him to do that in his retirement. 

docwyte said:

I'm kinda wondering what was covered on a policy that cost $250/month.  As far as health care, I'm lucky I've got that covered by the Air Force.  No worries about medical coverage whenever I retire.

Glad you’ve got the med side from military. One more plus of serving! Makes the info (and whining) I gave unneeded. 

The applicable part is... go for it!

the 250 was for single, seldom go to doctors, and catastrophic only. 

A couple years later was 2200 for married, catastrophic only. Actually even higher deductibles, and less coverage. 

frenchyd said:

docwyte said:

When I stop private practice, I'm not going back.  Part of my retirement plan includes working part time at the Dental School or the VA, but that's not in my control.  If they hire me, great!  I'll work there unless I don't like it.  If they don't hire me, great!  I've got plenty of keep myself occupied.

My brother ( an MD) works 2 days a week in Northern Minnesota  from Texas.  I can't imagine what they have to pay him to entice him to do that in his retirement. 

I'm eligible for VA benefits except I earn too much to be get them. Last I heard it was over $42,000 a year  and they expired.  You might check that out. 

In reply to frenchyd :

I have twenty one years and counting.  I get TriCare, don't have to worry about how much I make etc.