Taking Early Retirement

Did you love your job? If so, you may have been happy with your life. That is until your supervisors explained that your company was cutting costs. Due to those cost cutting measures, you are being forced into early retirement.

Most likely, you are over 55 years old. If you are like many other individuals in your shoes, panic may be the first feeling that sets it. Yes, being forced into early retirement may seem like “the end of the world,” but it doesn’t have to be.

Company Grapevine

At most companies, cost cutting is already in the company news or being talked about on the company grapevine. Everyone is talking about what is going on “upstairs” or in the board room. Most likely, your company, if it is of any size, has or will be bringing on a consultant. This way, management has someone to point the finger, when layoffs or early retirements take place. “We have visited with our consultants and it is their recommendation that . . . ”

First, when you get the news, take action. See if you can stay on for an additional two or three months – say 90 days. This will give you time to get your affairs in order. Explain that you understand that cutbacks are necessary, but as a valuable employee, you’d like to get your affairs in order and would like to stay on for three months “or so”.

Transition Teams

This terminology “or so” lets your employer know that you are going to go willingly, but would like some consideration and employment time to get your stuff together. Another term that is used is to ask, “Can I be on the transition team?”. Transition teams are needed to get the company from the size they are now, to the size they will become in six months. Transition teams might be one or two employees or they might be 100 or more. Some people will be asked to be on the team, and why not you?

When being forced into early retirement, you will be required to sign a number of important documents. Never agree to retirement without first learning about your company’s rules, restrictions, and attached strings. Will you receive a severance package? Does that severance package eliminate your pension or eliminate you from receiving any other important employee benefits? If so, talk to a financial advisor right away, particularly before you sign anything. Determine what your best course of action is. Is it better to take the severance pay or receive all of your benefits? Continue reading Forced Into Retirement? Consider These Steps