Fidelity latest company to show older workers the door

[broadway]

https://www.forbes.com/sites/nextavenue/2017/03/01/fidelity-latest-to-offer-older-worker-buyouts-double-edge-sword/#7312d876f6ff

 

[jollystomper]

From the article:

Voluntary buyouts offered just to people over a certain age aren’t discriminatory if they’re made the way Fidelity has done it. There, workers can choose to accept payouts that include from six months’ salary to more than two years' salary, plus 18 months of continued health-care coverage on their current plans, and then the option to stay on the health plan at a higher cost until they’re Medicare-eligible at 65

If my Megacorp offered such a buyout, there would be a stampede to volunteer for it.

 

[Samething]

Where do I sign? [emoji39]

 

[Just_Steve]

From the article:

If my Megacorp offered such a buyout, there would be a stampede to volunteer for it.

They offered an early out at the state agency I w@rked and so many put in for it that they withdrew the offer and have never made another one since.

 

[ERD50]

Interesting that the OP put a frown in with no comment, and everyone else is all smiles.

I also saw it differently, a buyout offer isn't exactly "showing someone the door". That would be a flat out firing to me (and probably illegal if it really did target "older workers").

I was very happy to get a buyout from my MegaCorp. I was grinning from ear-to-ear.

-ERD50

 

[Bamaman]

When MegaCorp has too many people, they go after the oldest (highest paid) and the youngest (cheapest to get rid of).

And such cut backs are "numbers things"--not personal.

With the benefits being offered, it's going to be the best thing to ever happen to the Fidelity employees.

And life goes on, and so does the company . . . . . . . . . . .

 

[USGrant1962]

Seriously - if I had a buyout I'd be dancin' yea!

But no such luck

Fortunately DF did at 55

Which set me on my path to ER at 55, with our without the buyout.

Was that too many smileys?

 

[jazz4cash]

We had one that I missed by 2 weeks. It was age 50 with 10 yrs of service. They pushed and pushed but couldn't get enough takers. They only offered 6 months salary compared to 1 month per year of employment under the long ago policy. Most of the takers were well off folks that were planning to leave in less than a year anyway. Three months later they separated nearly all the non-takers and they still got the 6 months. Mostly they were the ones that were not well prepared, kids in college, under 10 yrs on the job (e.g. no pension or trivial accrual). They have to fit a demographic profile so they included some younger workers and that's when it got personal. It was very traumatic.

 

[Badbreath]

Have to agree I would go now if they offered me a severance. But it will not happen.

 

[athena53]

With the benefits being offered, it's going to be the best thing to ever happen to the Fidelity employees.

And life goes on, and so does the company . . . . . . . . . . .

I agree that Fidelity is treating those who accept the offer pretty well. I still wonder if taking it is the wisest decision for everyone. I was with a Prudential sub in the early 1990s when they offered voluntary separation packages for people meeting some criterion of age plus years of service. Some of the ones who took it were clerical types in their mid-50s and they planned to just quit work and travel. I wonder how they ended up. Their pensions (non-COLA) would now buy about half what they did 20 years ago.

Then there was the smart, high-powered woman who took the package and went to work for the competition. They weren't happy about that since she was an underwriter and they're the ones who bring in the business.

 

[capjak]

Nice Package.......TWSS....

Definitely would be a good way to retire with several months severance...

 

[euro]

Nice Package.......TWSS....

Definitely would be a good way to retire with several months severance...

Agree - good terms. I was hoping for something like that before I FIREd but alas, no such luck.

 

[broadway]

The packages are great.

It also means 50+ people are considered useless in this economy apparently.
Sweep them out.
Run a company with 20-somethings.

 

[travelover]

MegaMotors did a similarly generous one, which I took. The next year, people were shown the door abruptly. Best to grab one and run if it is offered and you are close to ready.

 

[Milton]

Hypocrisy in action

Interesting that while Fidelity is trying to induce its employees to take early retirement, it is [-]publishing advertisements[/-] sponsoring 'articles' like the one referenced in this recent thread, cautioning its customers against the financial perils of same.

You've heard the horror stories about many Americans retiring with puny nest eggs and little income to live on…. [E]arly retirement can mean an income squeeze…. [M]ore Americans should consider working longer and delaying Social Security.

 

[athena53]

Interesting that while Fidelity is trying to induce its employees to take early retirement, it is [-]publishing advertisements[/-] sponsoring 'articles' like the one referenced in this recent thread, cautioning its customers against the financial perils of same.

I know. Every clickbait article on retirement planning lists retiring too early and starting SS too early among the "Big Mistakes Retirees Make". Those early retirement packages are fine for people who were already close to retirement and just needed an enticement to do it now. Not so fine for the ones who really don't think it through, or are forced to go in the next wave.

 

[Mdlerth]

In 37 years, I've dodged so many downsizings I've lost count. But I'm so close now to going anyway that if the next one clips me I'll be this:

And compared to some, the Fidelity offer seems astonishingly generous. Two year's pay plus health bennies? Wowzers! Sure, it's still peanuts next to what CEOs routinely award themselves, but it would be plenty for me to jump on it.

 

[Breedlove]

Ex oil patch here , I was sent out the door last July . One week severance for every year worked or a max of 6 mos. I got the 6 mos. also with 6 mos. Insurance. I was kind of upset at the time but now I talk with the people left and they tell me how lucky I really am. it appears American employers have went farther down hill against the employees.

 

[Milton]

Anyone who is tempted to accept an employer's incentive package should first read Not Working, by DW Gibson. He interviewed several people who took packages and later regretted it very much, for both financial and psychological reasons.

I am not saying "Don't do it!" … it could be a great path to FIRE for the right person. Just look before you leap, that's all.