Posted on 08/23/2020 2:43:28 PM PDT by rintintin
More and more Americans are being given the option to retire early due to the economic setbacks of the coronavirus pandemic, FOX Business’ Gerri Willis told “FOX News Rundown.”
“This is fascinating. These numbers are sky-high,” she said on the daily podcast. “We didn't really understand the number of people that were being offered early retirement. And it's still not entirely clear. But what is clear is that there is a greater proportion of people going into retirement than we thought.”
Willis said younger Americans in their 40s and 50s are being offered early retirement since so many industries like hospitality, retail and restaurants can no longer afford payroll.
(Excerpt) Read more at foxbusiness.com ...
I’ve got several retiring soon in different departments.
All of them have more than put in their time in decades of shift manufacturing and support jobs.
The ace shipping guy will be the toughest to replace.
I’ve been there over 8 myself. Started out as a contractor / temp. 5th in the IT group. At one time down to two but at three. One is still learning from a developer standpoint.
As for me, I’m the first person they look for or the last one they want to see. It’s a chancy job. But it comes with a fairly large office, usually deserted 2nd floor and very little questioning. Not bad for someone with 6 classes in computer repair and just an active 1999 era A+.
Did I mention I retired from Walmart. $1800 was a little over half my pay. They did however, give me a lifetime 10% discount card. I always tell people hubby married me for the discount card.
Sometimes you get a little more than regular severance, but usually not enough to take it early.
Husband was offered it a few times. I told him to decline it. They eventually laid him off.
The early retirement package and severance just aren’t that different. He was able to work a few more years by not taking it.
If your company is in bad shape, you might want to take it.
Usually, a bonus and months of extra salary are offered for voluntary retirement, varying according to seniority. The benefits for the company are a reduction in the number of higher paid employees without the bitterness and tears of forced early retirement, while the remaining employees are often jealous of the early retirees. The net effect is to preserve employee morale and loyalty while reducing costs. The payouts for early retirement are transitory costs and are easily absorbed.
‘Early retirement’ packages vary greatly from company to company and position to position. I went through several rounds of this. They are looking to RIF people so maybe they bump up your years of advice to qualify you for a plan. Maybe they offer some money for education. Maybe they offer continuing medical benefits for six months or a year. Regardless they want you off the books and OTP*.
*: Off The Premises .... or.... Out To Pasture..... and these options are generally offered to those whom the company perceived as Old Tired People.
Just carnage for senior workers...bring on the foreign workers!!!!
That’s fine but the businesses mentioned in the article are hospitality. retail and restaurants. A few people at the top of these fields may be offered severance but the fast majority will only be offered the door. (As a true freeper I only read the excerpt)
One of my sons is a pilot for a MAJOR airline. They’ve offered early retirement to 14,500 pilots. It is VERY generous and 2,300 of them accepted it. Most were due to retire within the next 2-3 years anyway. They almost couldn’t afford to turn it down.
My company called it the Organization Transition Plan.....
Some of the offers are really good, so good that there are situations where more people are willing to retire early than the company wants.
That is the gymnastic they will have to navigate. It has never been the duty of the corporate world, to become nurses for the retired.
Feeler already out for something new and interesting...
The strategy of voluntary early retirement requires that companies offer enough extra compensation to make it attractive to the employees. Otherwise, if forced, the retirement is a de facto firing that can trigger age discrimination complaints.
That is exactly what I did when Intel offered me early retirement back in ‘14
Management was shocked I took it and then fired my manager who allowed it to happen.
COBRA is a racket. You are better off getting a catastrophic healthcare policy and paying out of pocket.
Haha-isn’t it great when a plan comes together-and you get to keep some favorite customers, too?
I was laid off from Time Warner Cable in 2010. It happened in November and I had until the end of December to declare if I would accept their severance offer. The offer was to pay me one month's salary for every year I had been with them. I had worked there for 19 years. After taxes, it came out to over $56,000.
Among the smartest things I ever did was to wait until Christmas to send back my agreement, knowing all the HR folks would be on vacation and they wouldn't cut me a check until 2011, thus avoiding a heavy bite in IRS taxes. I wound up working only about seven months of 2011 whereas I had already worked 10 moths of 2010.
In my mind, I saw that $56,000 check and thought "nest egg". God told me, "no, you'll need this". I was laid off again in 2011 and spent almost an entire year out of work during the Obama Depression. I got back into employment with about $2000 of that nest egg left but God spent a lot of time that year hammering home some important points about our relationship I won't soon forget. When God hands you a wad of cash, He already knows what He's going to use it for and that's probably not what you were planning.
Friend of mine (58) just accepted an early retirement package from Delta. They gave him six months of full salary (versus) the 75% of salary he was making due to cutbacks in their normal schedule. They even set aside $150K they could use for medical, except for Obama Care. He is glad he did.
Normally the company gives a bonus for early retirement many years ago my mom worked for civil service they offered her early retirement if she took it $25,000 dollar payout I believe her retirement was a little bit less each month but not sure how much less it was!! She was not on 401K at that time!! She has now been receiving retirement benefits LONGER than she worked for the government no wonder the damn government is broke!! She is 91 most don’t make it that long!!!
I wire Vehicles,
I’ve been working on a program to
“Call it in.”
I’d still like to hang out
at an Indy Car shop-—
For a day.
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