Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-04-2014, 04:03 PM   #21
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,448
Quote:
Originally Posted by MuirWannabe View Post

The main retirement benefit is subsidized health care. Our plan is a cadillac so even with subsidies it is very expensive. I'm positive I could get cheaper insurance with a HD plan on the open market. But it would be nice to have this option. There are other retirement benefits but they are minor at best.
Have you determined how much it would cost for a higher value health insurance policy that would give you the coverage you need in retirement?
__________________

__________________
MichaelB is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-04-2014, 04:17 PM   #22
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,154
Do you know how much the subsidy is really worth? My "subsidized" retiree healthcare is only about $150/month less than a decent ACA plan. For that amount, I wouldn't wait around. And I agree with the other posts stating that the title of "official retiree" is worthless for the vast majority of companies.
__________________

__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 08-04-2014, 04:18 PM   #23
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
Quote:
Originally Posted by REWahoo View Post
When you're FI and lost the fire in your belly, it's time to RE...
+1
__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline   Reply With Quote
Old 08-04-2014, 04:32 PM   #24
Thinks s/he gets paid by the post
Lisa99's Avatar
 
Join Date: Aug 2010
Location: The Villages
Posts: 1,327
I'm in a similar position. Turn 53 this month and we crossed the line into FI late last year. However I want to hang on to 55 so we have the flexibility with my 401k (Roth conversions are part of our plan).

I still like my job so I'm not desperate to get out but I'm considering asking to go part time next year so that I coast into retirement. As long as I work >20 hours per week I'll have full benefits.

Have you thought about working part time?
__________________
Lisa99 is offline   Reply With Quote
Old 08-04-2014, 05:07 PM   #25
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 1,132
"Official retirement" has little-to-no meaning for me. I left at 52 vs official "early retirement" at 55. I gave up a lot, including unvested options, RSUs, and a large bump in DB pension. I told everybody I was "retiring" because I had no intention of ever working again. I do have access to fairly low-cost HD retiree health insurance, which was available to anyone with >20 years service. So that helped, but paled in comparison to the other items I mentioned.

Sounds like the insurance doesn't make sense for you anyway. So if your ONLY reason for staying is to be an "official" retiree, then, yes, that's weird and silly... IMHO. I'd write the letter.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.0% SI: 2 pensions, some rental income, SS later
Cobra9777 is online now   Reply With Quote
Old 08-04-2014, 06:16 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,886
I left at 47 and it wasn't "officially retired" as for me the health benefit and fully vesting didn't happen as the magic age at Megacorp was 50. Actually, calculating with the old rules, I would've been considered retired, but Megacorp jazzed around with the calculations a few years early..but that's a different story.

The thing is, I tell everyone that I retired. I feel that I retired from Megacorp and had totally forgot that I officially did not until coming across this thread . In other words, mentally I was FIRE'd already before pulling the plug.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Old 08-04-2014, 07:13 PM   #27
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,809
I can relate to your post. My original plan was to retire at age 55. We hit FI when I was 52, and DH was 62. So I changed it to 53... then I realized if I waited a few months after my birthday, I'd hit the official 20 year mark with megacorp. No pension or medical benefit - but a mindset benefit. (They froze our pension in 2009 and I didn't have "the rule of 75" when my mega-megacorp split into 2 megacorps in 2011... the medical/pension went with the other megacorp... so I lost that.)

I was all set to stick it out to hit the milestone. (Plus a few more months to get one more round of ESPP and the annual bonus)... when my boss started talking about rotating a small number of us through a customer site through the summer. I dreaded the week away from my family, every few weeks, indefinitely. I enjoy travel for ME, not so much for business. So... I looked at my finances again, ran firecalc, RIP, i-Orp, etc and then gave 2 weeks notice.
__________________
rodi is offline   Reply With Quote
Old 08-04-2014, 07:21 PM   #28
Full time employment: Posting here.
 
Join Date: Sep 2012
Location: San Jose
Posts: 607
Call me un-sentimental, but I couldn't care less about being an official retiree of any company I've worked at, including the one I'm at now.

Of course, the longest stretch I've ever had with an employer is 6 years (and that was about 3 years too long in hindsight), so I've never had any emotional investment in any of them.
__________________
LoneAspen is offline   Reply With Quote
Old 08-04-2014, 08:13 PM   #29
Recycles dryer sheets
 
Join Date: Nov 2009
Posts: 55
Don't quote me on this, but being able to tap the 401k, although it depends which employers allow it, I believe it is on the year you turn 55. So depending on your date of birth it may be almost a year before. For example if you turn 55 on Dec 31st you may be able to retire on Jan 1st of the same year when you are only 54 and 1 day.

Please double check with your plan if this is interesting to you, it probably all depends on the actual wording of your individual plan.
__________________
Finder is offline   Reply With Quote
Old 08-04-2014, 08:15 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,427
Quote:
Originally Posted by MuirWannabe View Post
....Even with the healthcare subsidy I would still be paying ~$16K per year to cover both me and DW. Plus whatever copays, etc. No health issues yet so I'm fairly sure I could do at least that good on the open market.....
It is very easy to check. Try healthsherpa.com to get an idea. I suspect you can get a good plan for much less than $16k a year.

Looks like a bronze plan for a couple would be a little more than half that.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 08-04-2014, 09:42 PM   #31
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 246
Believe, me, the the only considerations the company has for "retiree status" is with respect to if/when benefits are bestowed. Vesting is the primary criterion, after that comes the minimum ages most companies have for bestowing benefits. In most cases, you can leave any time after vesting, and long before you start to collect. After you consider that, retiree status is all in your head...

Even at its very best, employment is a mercenary relationship, on both sides.
__________________
ggbutcher is offline   Reply With Quote
Old 08-04-2014, 10:06 PM   #32
Recycles dryer sheets
 
Join Date: Nov 2009
Posts: 55
Quote:
Originally Posted by easysurfer View Post

...The thing is, I tell everyone that I retired. I feel that I retired from Megacorp and had totally forgot that I officially did not until coming across this thread . In other words, mentally I was FIRE'd already before pulling the plug.
this looks like a cool approach
__________________
Finder is offline   Reply With Quote
Old 08-04-2014, 10:06 PM   #33
Full time employment: Posting here.
MuirWannabe's Avatar
 
Join Date: Oct 2009
Posts: 670
Quote:
Originally Posted by pb4uski View Post
It is very easy to check. Try healthsherpa.com to get an idea. I suspect you can get a good plan for much less than $16k a year.



Looks like a bronze plan for a couple would be a little more than half that.

I've checked the fed sight for ACA. I need to look more and study the differences in plan choices. I'm sure it's not that hard but I found it confusing. A homework assignment for me.


Sent from my iPhone using Early Retirement Forum
__________________
“Of all the paths you take in life, make sure a few of them are dirt.” John Muir
MuirWannabe is online now   Reply With Quote
Old 08-04-2014, 11:33 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,427
Some megacorps (my old one for example) will add a year each to your age and years of service if you get RIFed. We didn't have the age 55 limitation, but I needed to get to the "magic 75" number (age + YoS) in order to get retiree medical coverage. So when I was 50 with 23 YoS I volunteered to be RIFed. The extra years they added pushed me over the line.

You might want to check and see what the policy is in your company. Volunteering to get RIFed can save someone else's job while allowing you to escape early. Talk about a win-win.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 08-05-2014, 01:52 AM   #35
Moderator
bssc's Avatar
 
Join Date: Dec 2005
Posts: 9,927
Exact same situation, you needed to be 55, 10 years of service at my Megacorp. Day after my 55 birthday, I gave notice. I waited for benefits and a few other things.
__________________
Angels danced on the day that you were born.
bssc is offline   Reply With Quote
Old 08-05-2014, 08:18 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,886
Quote:
Originally Posted by Finder View Post
this looks like a cool approach
On my second to final day, I even sent a goodbye thank-you letter to co-w*rkers saying that I decided to hang it up. I left some $$ and benefits on the table when leaving, the the moment walking out the door felt so free feeling like I left on my own terms.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Old 08-05-2014, 08:44 AM   #37
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
So I golfed yesterday with my old boss who "officially retired" from Mega corp. The place was bought and the facility was butchered and closed this year.

All gone and forgotten.

As a side note, I believe Obamacare will make cadillac plans cost prohibitive .... wouldn't hang my hat there.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 08-05-2014, 09:33 AM   #38
Recycles dryer sheets
 
Join Date: Apr 2014
Posts: 100
Quote:
Originally Posted by harley View Post
We didn't have the age 55 limitation, but I needed to get to the "magic 75" number (age + YoS) in order to get retiree medical coverage.
A few years ago, my Megacorp changed their retiree medical program. You had to have 60 credits (age + YOS) to be grandfathered into the old program (which would have paid over 50% of the premiums for life). I was 4 months shy at the time, so I ended up in the middle tier (a benefit of about $1800/year starting at age 65). Newer employees essentially don't get any retiree medical benefit, other than being able to keep the insurance (at full cost) until Medicare kicks in.

So probably not terribly worth it for me to stay to 55 just for the retirement benefits. At this time, I don't estimate that I will be FI until just around that time (or slightly later) anyway, so not a decision I need to make right now. Just good to know if circumstances change.
__________________
ChicagoGal is offline   Reply With Quote
Old 08-05-2014, 11:18 AM   #39
Full time employment: Posting here.
 
Join Date: Sep 2012
Location: San Jose
Posts: 607
Quote:
Originally Posted by ggbutcher View Post
Even at its very best, employment is a mercenary relationship, on both sides.
That is EXACTLY how I view employment.

My first job out of college, I thought I'd be somewhere my entire career and retire with them, just like my Dad did with his job.

Boy, was I mistaken. It took me a few years to learn that there's zero loyalty anymore in corporate America, so I quickly changed my mindset to one of a mercenary.

My employer buys my loyalty two weeks at a time with every paycheck, no more than that.

I figure they can tap me on the shoulder and walk me out the door on a moment's notice if it suits them, so I'm always prepared to do the same to them. When I've learned everything I can where I'm am and a better position comes along to capitalize on, I'm outta there.
__________________
LoneAspen is offline   Reply With Quote
Old 08-05-2014, 11:56 AM   #40
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,885
Quote:
Originally Posted by MuirWannabe View Post
My initial goal was to RE at 55 in the year 2017. However, I'm actually well positioned financially to be able to leave next year at age 52-53. And I very much want to go! Unfortunately, to be eligible for official retirement from megacorp you have to be 55 along with having 10+ years of service.

I've worked for this company for 26 years so years of service is clearly not an issue. The age 55 requirement seems so arbitrary like many such coporate policies. It is frustrating.

The main retirement benefit is subsidized health care. Our plan is a cadillac so even with subsidies it is very expensive. I'm positive I could get cheaper insurance with a HD plan on the open market. But it would be nice to have this option. There are other retirement benefits but they are minor at best.

But after 26 years my desire to be an official retiree of this company matters to me. I know that may sound weird. But I'm bothered about leaving the company and not being a retiree of it.

Anyone else faced this situation? Am I silly for even concerning myself with it?
I guess I represent a dissenting viewpoint here.

What I am reading in your initial post, is that it just doesn't quite feel like the right time to retire, somehow. Something seems a little "off" and you don't feel comfortable with it. You had a goal, to be an official retiree, and you want to reach that goal. I'd go with your gut instincts, and retire when everything is telling you the time is right.

When All Systems Are Go, then do retire and you will have no regrets! Retirement is wonderful.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Not Eligible for IRA - Advice evemarie Young Dreamers 2 01-30-2013 09:30 AM
Hi... I'm eligible to retire soon... spudowns Hi, I am... 7 03-10-2012 06:14 AM
Disabled, not eligible for SSDI, what now? rct687 FIRE and Money 33 06-16-2011 12:03 PM
What is the solution if you're not Cobra eligible? BarbaraAnne Health and Early Retirement 15 05-30-2007 04:39 PM
Not eligible for Roth IRA - conversion? Lusitan FIRE and Money 9 02-23-2006 11:00 AM

 

 
All times are GMT -6. The time now is 05:22 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.