ARGH! New info about Co retirement pkg

[Alan]

I was in a very similar situation and decided to stay on for 2 more years, and while it seemed an agonizingly long time it was well worth it. I was 55 when I retired under the 80 point rule (age plus service).

 

[Which Roger]

You certainly don't need to stay if you don't want to. 2M portfolio and 60k expenses is just a 3% withdrawal rate, and that should only get better since your husband's income covers your current expenses. On the other hand, you don't have that long if you do decide to stay. Comes down to desire for freedom vs utility of the extra $. Only you can decide.

 

[euro]

I am in a similar situation. We're more than ready to go now, but DW's mega corp will subsidize health care between retirement @55 and medicare to the tune of $500/mo if she stays on 18 more months. Basic $60K decision for us. "We" (if she has to work, I have to work ) are gonna stick it out for 18 more months for that.

See, to ME, yours is a much easier scenario than the OP's. If I understand correctly, all you get is extra cash (which may be nice, but 60K would NOT have kept me at work for another 18months - to each their own though). But you are stuck carrying the risk of GETTING healthcare (preexisting cond, etc) either way.
For the OP, the decision, in addition to cash, looks like waiting for a reasonably secure and subsidized policy vs. getting coverage on the open market. This would be much harder for me to decide because it also depends on current/future health (OPs own and family), preexisting conditions, etc), which makes it more of a toss-up.
Finally, as others have pointed out, it is almost inevitable, that changes (and NOT good ones!) will happen to most mega's retiree healthcare plans sooner or later. It's just TOO EASY a target for cost-cutting (who cares if a bunch of retirees are pissed - much better than dealing with frustrated employees!). I'm lucky enough to have a relatively generous retiree health benefit, but even my ex-mega has been steadily tweaking and reducing the benefit. It's still OK, but not what it was just a few years ago, and the writing is on the wall... all I can do is hope I'll make it to medicare before things really go South.

 

[ugeauxgirl]

Whatever you do, I wouldn't give up the grandfathered pre-ACA plan. We have one of those and are very happy we do as most of our docs do not accept Covered CA.

OP here- this is a good point, thanks. I think I will continue to work the additional 2 years- I will keep my individual BCBS plan till just before I quit and then get on co health plan- that's in case industry craziness gets worse and I can't take it anymore and have to quit sooner, at least I will still have the grandfathered plan which costs 35% of what a similar one costs through current healthcare exchanges.

We contribute 100K per year to our stash, so 2.75 more years of work = $275 K in additional money.

Forgot to say that if I take retirement package, they will pay me 2 years reduced salary for part time work while i transition my business to my successor. That will probably be 75K or so per year so another 2 years we won't have to touch portfolio and could still add maybe 50/year savings. The ironic part about all this is that even if Co does not come though with healthcare, our stash should increase by 25-30% in the next 5 years even with a very conservative rate of return. So we'd be able to afford much higher HC costs anyway. I'm trying to look at the bright side, because I SO wanted to retire this year. UGH

Thanks for all your input. I value your advice

 

[pb4uski]

Does the 2 years of part-time work count towards the 70 years that you need?

Where I worked if you worked over 1,040 hours a year it counts as a year for certain plans. I found out about that when I had been there for 4 1/2 years and my 401k statement said that I was fully vested even though the vesting requirement was 5 years.

If you will be working over 50% part-time for those two years then they might count towards your 70 years of age and service.

 

[ugeauxgirl]

Does the 2 years of part-time work count towards the 70 years that you need?

Sadly, no. You have to have your 70 BEFORE you are qualified for the pkg- the two years part time is part of the package. And its actually going to be more like consulting with my replacement. If I can hire the guy I want, he will not need much help from me- he is a 20 year vet himself. So the "part time" will be highly negotiable between me and my successor- I'll be there when he wants me, but I expect after the first 6 months, that will be nearly never. I'll be able to do extended travel as he will be handling everything while Im away- sounds lovely to me-

I deleted my retirement countdown timer as its just too depressing to look at now

 

[Scuba]

I understand how you feel. I was more than ready to go a year before I ER'd but I had a big financial incentive, more than a year's pay, to stay in my job till a certain date. I stayed. One thing that helped me a lot is making a list of everything I liked about my job. There were many things I didn't like, but I tried not to focus on them. I reminded myself that I was making a choice to stay, and referred to my list of positives to help keep me motivated. I also would frequently remind myself of the benefits to me of staying- not just the cash, but what it would enable for us. I made another list of things I was looking forward to doing or exploring post ER so that I was more positively focused on what I was moving towards vs being desperate to get away from my job. All of these things helped me stick it out, and I happily RE'd right after turning 56.

 

[ugeauxgirl]

Thanks- I will do that. I had already started re-running the numbers and figuring what else will be possible, but you are right that there are things I love about my job. I will start my list today,

 

[Scuba]

Happy to pass along what helped me. And you'll still be retiring really young, so an extra financial cushion doesn't hurt. [emoji41]

 

[kaudrey]

My thinking is the same. I am a fed, and I have to stay until my MRA (minimum retirement age), in order to keep federal health benefits. If I quit before then, I lose them, even though I'll be eligible for full pension after 30 years (at which age I'll be 52). I plan to work to 57 just to keep the health bennies. On the plus side, I like my job, so working another 9 years doesn't seem so bad.

 

[Big_Hitter]

Read the SPD closely - do they have a right to terminate the retiree medical plan at any time?

 

[CardsFan]

Read the SPD closely - do they have a right to terminate the retiree medical plan at any time?

I have never seen a plan that could NOT be terminated at the discretion of the employer. Mine included. And I have seen others suffer through this reality.

At a younger age (< 50?) you need to really have a plan. For me, at almost 62, I'll pay what ever I need to for 3 more years to get to Medicare. It might hurt a little, but it is in the plan.

 

[UnrealizedPotential]

I would stay. The magic number of 70 is a pretty low bar. Most are 80 or 85.

 

[Texas Proud]

Read the SPD closely - do they have a right to terminate the retiree medical plan at any time?

I know someone else answered, but REALLY


Every plan in existence has a right to terminate OR the law firm that created it will be sued for malpractice....