My dad was “retired” from Exxon in 1998 at 55.
Increased his workload and told him that he had to learn how to use a PC when he had never touched a keyboard.
Gave him a nice clock and a see ya after 33 years.
Sometimes the “offer” to retire is indirectly made to where the employee has a Hobson’s choice. When your father was hired, the prevalent company cultures were different than today ... hired for life, pick when you want to retire, back loaded defined benefit program. That started to change in the 1990s shifting to 401k and everyone is basically a non-unionized free agent. If one keeps this mindset, “it’s only business”, and learn how to paddle one’s own canoe, good things can sometimes happen.
I know of people who retired and they returned to work as contractors b/c of specialized knowledge + they knew how the company operated. One colleague contracted for almost 25 years, then “retired” the second time at age 83. Unfortunately, he was killed in an auto accident a couple years later.
Many handshakes are subject to tax laws .... i.e. if the position is eliminated, the person cannot be hired back as a contractor.