Considering retiring on October 31

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allenciox

Confused about dryer sheets
Joined
Mar 16, 2011
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My company is offering an early retirement opportunity for all those >=60 that would go into affect October 31 for those that take it. Since I am turning 63 on September 30, I fall into this group.

The benefits are $18k in an HRA, plus 3 months up to 1 year of salary based on years of service. I have been with them for 35 years, so it would be the maximum (1 year) for me.

According to any retirement calculator out there, I have much more saved in and outside retirement than needed to take me to 99 years old (the FIREcalc calculator estimates that the minimum I would have at that point would be the same balance as what I have now). I am also maxxed out on social security, starting this year I have > 35 years of earnings, of which 32 of the years hit the salary limit for social security (and the lowest year of the 35 was my first full year at my current company, when earnings were still 93% of the limit).

At any rate, what kinds of things should I be thinking about as I decide whether to take this opportunity? I have to decide by September 15 whether I will take it or not. Oh, also, I am single, with no dependents.

Thanks for any advice!
 
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Based on what you write, I say TAKE IT!

What do you need to think about? I think I know what an HRA is. But I think you still need to arrange for your own health insurance, right? You get $18,000 to use for it, but you still have to arrange it. Other than deciding how you want to set up your insurance, there doesn't seem like much else to worry about.

You're getting a year of salary to give you time to figure out how you will pull money from your own accounts to pay expenses after that year. That's plenty of time.

Go for it.
 
Unless you have crazy expensive spending habits you should be good to go with ease. I would for sure take it.
 
If you don't take it, you are basically working for free for the next year. Of if you want to work to 65, two years of work for one year of pay. Makes no sense if you are financially set now. C'mon in, the retirement waters are great!
 
allenciox said:
At any rate, what kinds of things should I be thinking about as I decide whether to take this opportunity?
Thanks for any advice!
Click to expand...

Think about where you're going to throw your retirement party and who you will invite! Other than that, I think your company decided it for you!! Enjoy.
 
My only concern is what I will do with my time after I retire. Also, since the majority of my social life revolves around my work, I will have to figure out what to do there, too. Financially, I am not worried at all.
 
Is there anything else you wanted to do with your time besides continuing to work at a job you enjoy, while maintaining the social benefits that come from being on the company payroll? If that is a big "YES" then your best time to go seems to be soon as you get the bonus $ and still have health to do whatever it is. Otherwise, make peace with finishing your race doing what you've enjoyed for 35 years knowing that the finish line might be just around the corner... or a decade away but you're good with that, no regrets. Lots of folks sail off into the sunset from their desk (RIP) or retire to a rocking chair cause they "gave at the office" (everything) BUT maybe they get that 50 year Gold watch! ⌚ Good Luck with your choice! Wish I was being offered the same ��
 
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allenciox said:
My only concern is what I will do with my time after I retire. Also, since the majority of my social life revolves around my work, I will have to figure out what to do there, too. Financially, I am not worried at all.
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You have worked a long time and saved appropriately. The work hamster wheel conditions you to shut out all other possibilities. There is SO MUCH more to life than working for somebody else. Also, Covid should have tamed your work social life. Time to reset!

You owe it to yourself to take this package and run! Your new job is finding what you love to do! Enjoy freedom. Relax. Exercise. Try new hobbies. Join a club. Travel. Volunteer. Invest time in your family. Options are endless. Don’t be afraid. Embrace it!
 
allenciox said:
My only concern is what I will do with my time after I retire. Also, since the majority of my social life revolves around my work, I will have to figure out what to do there, too. Financially, I am not worried at all.
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You will have to figure this out within the next years, even if you stay.
So better start now.

There are a lot of helpful threads and books for that problem. Or this: https://esimoney.com/huge-list-of-awesome-retirement-activities/
I liked the "get a life tree" exercise: https://livingafi.com/2015/03/09/building-a-vision-of-life-without-work/
If you could figure out how to dedicate your time and energy to work ( = other peoples goals) you should be able to do that for yourself, too.
 
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Cobra will cover you almost to medicare. Then there's ACA.

Sign up now while there's still spots on the list!

Figure out what to do later.
 
RobbieB said:
Cobra will cover you almost to medicare. Then there's ACA.

Sign up now while there's still spots on the list!

Figure out what to do later.
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These were my first thoughts, too. OP, take the money and run......

P.S. As someone who also retired on October 31st (2008), Halloween going forward will become no tricks but all treats! :cool:
 
RobbieB said:
Cobra will cover you almost to medicare. Then there's ACA.

Sign up now while there's still spots on the list!

Figure out what to do later.
Click to expand...

Actually, my thought is to do COBRA only through the end of the year (two months). Starting next year, I will have no salary so I should be able to do ACA with subsidized premiums (or am I missing something?)
 
Couple things to think about I haven't seen mentioned yet....

Medical / dental / vision insurance - If your insurance plan changes after you retire, consider if you need to do any checkups or minor stuff covered by current insurance before you retire.

Info you will lose access to - If you have any information / files etc.. at work that you wish access to after retirement, get copies made. The most likely stuff is any contact information of people you've worked with that you may want to keep up with....especially those that chose to retire when you do...they may also be looking to keep up friendships from work.

Pension - You didn't mention if you have a pension. But if you have a lump sum pension option and chose to take it, consider when you want to take it. One doesn't have to take it immediately at retirement. Test if there's any benefit to timing of when to take it. Similarly, consider when you wish to take Social Security.
 
allenciox said:
...

At any rate, what kinds of things should I be thinking about as I decide whether to take this opportunity? ...

Thanks for any advice!
Click to expand...

You might want to practice smiling. Those muscles are going to get a real work out.

Based on what you posted, I'm with the others, this is golden. When opportunity knocks, answer the darn door!

I sort of hate to use the term "no-brainer", as you have used your brain to look into this with FIRECalc, seems well thought out.

Now, just do it! Congrats!

-ERD50
 
When I was 59 1/2, I was given a similar opportunity and took it.

During the decision making process, I just kept thinking about how mad I'd be at myself over the next year if I kept working, since I'd essentially be working for free if I didn't take the package and run.

Glad I took it and have found plenty to do.

Now MegaCorp is kicking themselves for offering the package to so many since they are short staffed and have millions of dollars in unprecedented past dues.

Their problem now, not mine anymore!
 
What is to decide? Take the offer. Fast. I suspect that if you look at the after tax numbers it may look even more financially advantageous.

Do not confuse your two issues. Taking the early out is a financial and possibly a health care decision.

What to do with your retirement is a very separate lifestyle question that you will have to deal with regardless of whether you take the earlyout or retire in two years at 65. If this is your deciding factor then you would work until you dropped dead.
 
Adios

You're getting about twice what one of the big MegaCorps is offering 1000's of salaried employees right now. And the HSA should carry you to Medicare.

Congratulations.
 
If you don't take and retire at 64 you'll be working for free,
if you retire at 65, you'll have work for half pay...
 
Op--
congratulations, what an opportunity you have!
Sounds like your financials are in order and you are working on the medical insurance plans.

Take some time to wind down, de stress, relax. Ernie Zelinski's "Get a Life" tree exercise is a good one.
Think about anything you may have wanted to do in the past, you now have the opportunity to do it. Join clubs, meet other folks outside of work.
What do you do with your time to enjoy your days off? Do more of that!
 
allenciox said:
Actually, my thought is to do COBRA only through the end of the year (two months). Starting next year, I will have no salary so I should be able to do ACA with subsidized premiums (or am I missing something?)
Click to expand...

Is your severance lump sum or serial? With my MC, since it was serial, I was able to stay on regular health insurance just like an active employee for the duration, as far as the IRS and anyone else was concerned I was still a W-2 receiver.

Then I went cobra once severance ended, and did that for almost 18 months before going on ACA. Either way with only 2 years to cover, you can't go wrong as long as you have coverage somewhere, even if you end up paying full freight.
 
I barely worked for 9 years and I am already thinking about year-long road trips and living on cruise ships for the rest of my life. I don't understand your rational of wanting to stay around doing work after such a long time.

I do understand some can't / don't want to break the habit and some enjoy their work so much that they can't think of doing anything else. If you are in either of these groups, then do what you feel right.

There are literally hundreds if not thousands of different lifestyles out there. With the money you have saved, don't you feel like to at least give it a try? What if you don't like it? Well with that green cushion you have, you will probably become tired of trying new things every week until you are no longer physically fit to try new things.
 
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