Approach to Leaving the Company for Early Retirement
My sister in law was in a similar situation. She was a long term middle management employee with one company (about 30 years), age 62, transferred into a job she didn't like with a new young boss. The boss was increasing her stress level for a variety of reasons. She ran the numbers and determined she could retire comfortably, even with the high cost of private health insurance for the 1 1/2 years after Cobra ended and before Medicare eligibility. She made the decision to leave.
Her approach to informing management worked well for her. Once she made the decision it was time to go, instead of resigning and telling off the boss, she had a polite conversation with the boss. She took the high road stating that she was giving thought to retiring early, for personal reasons, and if the company was considering offering a package deal for early retirement she would be interested in hearing about it. The reason she gave was health concerns (legitimate) and the fact she was about to become a first time grandmother and would like to be free to spend time with her grandchild.
Note she said she was "considering" retirement, not that she was retiring. She hoped her boss would decide with a financial incentive would encourage her to retire so he would not have go through the laborious and difficult process of building a case to dismiss her. The comment about "health concerns" was intentional, large companies are extremely concerned about the legal risk inherent in involuntarily terminating older employees they are aware have health conditions. A few weeks later the boss came back with an offer of a year's severance, and the opportunity to work part time on project work at her convenience as long as it was less than 20 hours per week.
She accepted the offer which was better than she hoped for. She also worked 20 hours a week for the first three months of her severance period, then decided she wanted to cut the cord completely, and told the company she no longer wished to work part time. Three months after ending part time work, she is extremely happy, enjoying her financial independence and the freedom to do what she wishes each day.
While she didn't have the momentary pleasure of telling off her boss, her approach to "retiring" gave her boss the incentive to get her a much better financial deal than she would have received if she had indulged in a few minutes of telling off the boss and then departing.
Taking this approach, even if the company doesn't offer you an early retirement package, you can leave anyway on good terms. You haven't lost anything if your are truly financially and mentally prepared to walk now. Who knows, if you take the high road, six months from now the company may offer some part time or consulting work which at that time might be of interest. By not burning your bridges you may be opening doors that were not visible to you.
Been lurking here for a while and feel like I’ve learned a lot, but I really don’t have a natural aptitude for this stuff.
Recently got a new narcissistic 20 something boss to micromanage me along with a reduced territory/salary and a stress level through the roof. Was planning on retiring at 62, but feel I need to make a change now and hoping that can be retirement.
I turned 60 last fall, DW will be 60 very soon. House is paid, no debt to speak of.
Here are my numbers;
Brokerage/bank accounts $380K
My 401(k) $1,050,000
DW 401(k) $280k
My Roth $190k
DW Roth $115k
SS at 62 $25k, at 67 fra would be $35.5k
DW SS approx $20k @ 62, $25 @ fra
I also have a pension that will provide $32K at 65 if I take 100% coverage for my wife, or $35k with 50% spousal coverage. The payout is reduced permanently by 1/2% for each month if I were to start collecting prior to age 65. Non COLA.
DW will surely outlive me; I have bad genes and have already had couple scares, but currently healthy & active. Her family has much more longevity than mine, so I’d prefer to cover her at 100%.
Did a rough budget, came to about $55K a year not counting taxes or healthcare.
I feel like $100K/year should be my target. Also hoping my allocations would allow me to stay under the ACA cliff when my wife decides to retire in a couple years. I recently got on her company’s healthcare when I saw the writing on the wall. Her salary is approx $70k.
I am a little concerned with how motivated she would be to stay working if I were to pull the plug now, so I’m not sure I’d be comfortable if the numbers don’t work now.
Thanks for reading, appreciate any advice. This is a great group, it brightens my day when I get my weekly email update from this site.