Voluntary Separation Package/Early Retirement Incentive Package

[HVA7mm]

Because it's currently looming on the horizon, I'm curious how many guys here have taken advantage of Voluntary Separation Packages/Early Retirement Incentive Packages offered at their places of employment over the years?

What age did you decide to accept the offer? What were some of the pros/cons of making the decision, and does anybody wish that they hadn't? Maybe some wish that they would have taken one sooner?

Thanks in advance for the feedback.

[TBark]

I think these pkgs are somewhat confidential, mine was.
I inquired in mid 2020, deferred it for aprx 18 months and took it in early 2022 at age 61.
No regrets, it was generous, a lot of people get nothing.
Really can’t say much more,

TBark

[elkhunter11]

I retired at 55. Had I worked until 60, my pension would have increased by about 50%, but I would have taken $150k or so less for my house, as the prices fell by about that much. And you can never predict how long your health will hold out, so do you want to risk not being healthy to enjoy retirement later. Overall, I have no regrets.

[roper1]

Originally Posted by elkhunter11

I retired at 55. Had I worked until 60, my pension would have increased by about 50%, but I would have taken $150k or so less for my house, as the prices fell by about that much. And you can never predict how long your health will hold out, so do you want to risk not being healthy to enjoy retirement later. Overall, I have no regrets.

Another potential advantage going that young, a guy can do a part-time or low-stress gig to supplement income. Or spend some quality time doing "me" time or volunteering. Lots of choices with relative youth.

[Supergrit]

If you are some what close to retirement and there is a package available to leave. If that package is decent I would consider that a big win for you. In the near future you might leave and get nothing.
Some people I know took package and do casual job and live a semi retired life. It has worked out well for them.

[HVA7mm]

Thanks for the feedback and PM's. I thought that I should clarify that I'm not looking for any specific details, just if leaving your role a bit early had worked out for you.

If I exit i will be within 18 months of when I was planning to leave anyway. I had never planned on retiring from working at 55, just leaving my current job and continuing to work elsewhere for a few years (while collecting a private sector pension) until my spouse exits the workforce. I figure that if I can offload some of the stress of working for a big corporation as well as having the ability to put some extra cash into my retirement savings it might be time. However it will still be a big decision.

[2 Tollers]

I was in a senior position with a large public organization -- initially I want to go on my own at 60 and they talked me into staying a few more years to help with organization transition. At 66 I had enough and gave a firm date. There was pressure for me to stay on longer but I said no. I did get a contract to help out for awhile on leaving.

Hindsight -- we could have afforded retirement when I was in my 50's and I pushed the value of work for too long. It took the better part of 3 years to wind down from the job. I should have went earlier as those years are not coming back.

[britman101]

If it were me I would go see one or two financial planners and have them go over the numbers. With the software programs available to them they can go over various scenarios as to how you will be financially affected if you take a retirement package. For situations like this you need an objective evaluation, which will give you the facts as to what you need financially to retire.

[big zeke]

I have yet to find any retiree who wishes they stayed longer. Keep in mind you are doing this for you, the employer will muddle their way thru life without you. Their poor transition planning is not your fault, I often say, they are just renting you, they don't own you.

It's important to know your spending so I'd suggest tracking it for 6+ months or more. We keep a binder on the island and write down every expenditure over $10, at month end we total it up and then try to break it down by type (utilities, transportation etc) and if it's a onetime expense (like auto repairs or house paint) or ongoing like food. This way you can see how much you need for a comfortable life

Most folks who have no or little retirement savings will not be saved by a severance package, most are not that lucrative.

I stopped working at 56 and regret nothing. Days are filled with tinkering and volunteering with a smattering of me time, couldn't imagine going back to work.

[funkman]

I took my unreduced pension at 56.....CPP at 60. There were packages, but only if they wanted you gone due to cyclical layoffs. I suppose if I hung in there, a package would have come but the on-call rotation was wearing me out.

Never looked back....my mother (92) said "don't you dare double dip, let the younger people get jobs". I took it to heart and did not contract back or seek other employment.

It's been great.

[CanuckShooter]

I went @ 64, and would have gone earlier if the BC govt had come through with the early retirement package they were promising. And I would have grabbed one from the company too if it was available, nothing like a golden handshake on the way out the door. A severance package from my workplace would have equaled 52 months of pay, over $100K that I believe you could slide 100% of straight into an RRSP.

[Stinky Buffalo]

Originally Posted by elkhunter11

And you can never predict how long your health will hold out, so do you want to risk not being healthy to enjoy retirement later.

This is key. I think a lot of people have trouble grasping that concept - unless your job is literally the one thing that means the most to you in life, there's a huge amount of value in retiring as young as you possibly can.

That way, you can spend the maximum amount of time with the people that mean the most to you while they are still around, and also have the ability to go out and enjoy the activities while your body still lets you.

I like the volunteering comments as well. For example, there are so many people out there that would welcome some help around the house/yard, or just some company once in a while.

Britman's comment about seeing a financial planner is great advice as well.

I'm at the age where I really am looking forward to retirement. I have so many projects on the go, and I want to spend more time with the kids before they leave the nest completely. But, I have to hang on for a few years yet.

[huntinstuff]

If you do the math and leaving early works, do it.

I was eligible to be pensioned at 46. I did it.


Worked a few years at a fun job, and past few years my time is mine.

Looking ahead is always a good thing UNTIL you hit your 50's.....then, dont look too far ahead cause you probably wont be there.....

[wwbirds]

I was working the bird farm and training dogs when my employer of 25 years asked if i would be interested in an early retirement bronze handshake due to downsizing. At 49 it was a critical time as i was locked it til age 60 if i stayed past 50. Luckily i took it and developed the farm operation full time instead of continuing to split my time.
Always fun to do somrthing different for a while so when renovation contractor was here a few years later and offered my 16 year old son a job he also inquired if i would be interested in participating in little sideline doing framing and drywall. I could pick and chose my hours. Stayed for 3 yesrs until the manager and owner of wss asked what i was doing with all my spare time and offered me a full time gun counter job. Too many hours involved after 1 year but agreed to part time and lasted 6 yesrs as one of the most fun jobs i have ever had and also how i found this forum. No regrets, life is a journey. Side note my supervusor was offered the same bronze package and declined thinking his pension would increase substantially if he stayed to 60. 2 years later he was diagnosed with an agressive cancer and spent 3 years receiving trestment. He is still just a shadow of his former robust self taking a medical retirement 7 years after i left

[badbrass]

Retired at 57! Never looked back! We heard that a few of the stores were closing, so I went to my finance planner and he said, I had you retired a year ago! Went to the boss and said there would be people looking for a job, so I'm going to retire! He could not believe it. Two months later a person from our work place phoned and said they the company were now closing their doors! So it worked out great!

[Mavrick]

Retired at 60, and getting more request to, run equipment, help farm, train horses, and a host of other jack of all trade jobs. On top of running my own little farm.

Love it because I'm my own guy, can say yes or no as I please. When your free to pick the work you want, it's not work at all.

Don't be afraid of retirement, I can tell you there's money in it.

[WV911]

Retired at 55 after 35 years, staying longer would have been no benefit to my pension. I did get a payout for unused sick and vacation time.

You have less things you are paying after you retire, CPP, EI, possibly union dues depending where you work. Pension income can be split with spouse reducing income tax.

I continued with my landscape business for 4 years after I retired from my real job but gave that up and moved to Alberta to ski and hunt.

Money is great but we don't live forever. I saw too many guys stay to the end and die shortly after retirement or die before retirement.

[The Cook]

I retired at 63 with two DB pensions and a 6 months pay incentive (lump sum) and never looked back. Best move I ever made.

[ehrgeiz]

This thread makes me envious. Only 38, but definitely looking forward to a semi-retirement. Would like to be the guy doing it at about 45, I think I can, but who knows seems like there is a global financial catastrophe looming so who knows. Come what may.

[HVA7mm]

It's been great to hear the positives from those whose early retirement worked out for them, pretty much all of my former co-workers that have left in the last 15 years never looked back either.

I'll be sitting down with a couple of quality fee-based financial advisors before diving in head first as well.

There's no guarantee that I will be granted an early retirement incentive either, as it's at the discretion of the company, but I'm just doing as much homework as I can prior to checking off the yea/nay box. I'm not going to count my chickens before they hatch, but I'll at least start drawing up a design for the coop, lol.

[fordtruckin]

Man I wish I could get an early out retirement! I’d go find something else to do….

[huntinstuff]

Originally Posted by HVA7mm

It's been great to hear the positives from those whose early retirement worked out for them, pretty much all of my former co-workers that have left in the last 15 years never looked back either.

I'll be sitting down with a couple of quality fee-based financial advisors before diving in head first as well.

There's no guarantee that I will be granted an early retirement incentive either, as it's at the discretion of the company, but I'm just doing as much homework as I can prior to checking off the yea/nay box. I'm not going to count my chickens before they hatch, but I'll at least start drawing up a design for the coop, lol.

Good plan.

There will always be some world financial issue of some sort. Or a war that causes frying pans to double in price....do whats best for you.

[HVA7mm]

Originally Posted by huntinstuff

Good plan.

There will always be some world financial issue of some sort. Or a war that causes frying pans to double in price....do whats best for you.

I can always eat roadkill squirrels and bannock wrapped around a stick cooked over an open fire if things get really bad, as long as your son doesn't cut all of my trees down. But it would definitely be a lot more cost prohibitive for my wife to beat me over the head if the price of frying pans goes up.

[FXSB]

A few Years ago Harvard Business Review wrote an article about the cesspool syndrome.
The concept is that when payouts happen the good people take them because they know they can get a better job. The unemployable stay because they know they will be out of work.
Soon the only people who are left are the second group. Because they have the experience they rise to the top.
That is why it is called the cesspool syndrome.

[3blade]

A good friend and mentor declined early retirement. He stayed into his 60s, finally retired, had a cross Canada horseback trip lined up that he had talked about for years. Kept working casual the last few months until he walked in for a shift and fell down dead.

We spend many (too many) years worried about money and the habit is hard to break. I’ll be gone the minute I can

[CanuckShooter]

Originally Posted by HVA7mm

I can always eat roadkill squirrels and bannock wrapped around a stick cooked over an open fire if things get really bad, as long as your son doesn't cut all of my trees down. But it would definitely be a lot more cost prohibitive for my wife to beat me over the head if the price of frying pans goes up.

How would you cook up the squirrel pancakes? Just curious.

I remember when my dad used to try to talk with me about retirement planning , he'd ask me what my plans were if I didn't have enough money. I'd tell him not to worry I'd just rob a bank and either live high on the hog in the Bahamas or get free room and board in a Canadian boarding house. [prison]. He didn't know how to respond to that, but he knew I'd never live under a bridge someplace.

[Stinky Buffalo]

Originally Posted by 3blade

A good friend and mentor declined early retirement. He stayed into his 60s, finally retired, had a cross Canada horseback trip lined up that he had talked about for years. Kept working casual the last few months until he walked in for a shift and fell down dead.

We spend many (too many) years worried about money and the habit is hard to break. I’ll be gone the minute I can

These stories are all to common, unfortunately.

Had a good friend who said he'd retire "next year", year after year.

He finally bought a motorhome, announced his retirement, and then fell ill with a brain tumor shortly thereafter. His family took him on one trip with the motorhome before he passed.

[huntinstuff]

Originally Posted by hva7mm

i can always eat roadkill squirrels and bannock wrapped around a stick cooked over an open fire if things get really bad, as long as your son doesn't cut all of my trees down. But it would definitely be a lot more cost prohibitive for my wife to beat me over the head if the price of frying pans goes up.

😅😅😅😅😅

[golferac]

Your age doesn't matter. Always take the money.

[-JR-]

I retired at 61 ,what I know now is I should of retired at 58 .or even sooner !