Early Retirement? 5 Options to Consider

Employment options don’t increase as we get older. Your work position may not be safe, even if you have decades of employment under your belt.

More than 2 million Americans were forced into early retirement recently. And of that number, 55% automatically became financially insecure as a result.

If you have been offered early retirement, here is what you should consider.

Take the hint

If your employer is offering you early retirement, it’s for a reason that probably has nothing to do with your benefit. Your employer may be grooming a younger worker to take over your position.

Or your employer and company may be in dire financial straits,  trying to cut costs, save money, and offer early retirement as a cost-cutting measure. Your company may be insolvent and offering early retirement to its senior employees to stave off bankruptcy or closure.

Think carefully before you accept or reject an early retirement offer. If you reject the initial retirement offer, you may not get a second offer. And the next meeting you have with your supervisor or boss may be about termination.

Consider your options

If you have worked at your job for years or decades try to strategically cash in accumulated goodwill to get some inside dish from sympathetic supervisors, bosses and colleagues.

Based on what you learn, you can buy yourself some time before accepting the offer or finding new work.

For instance, if your employer is grooming a replacement, you could offer to stay on for a few months or a year to help out in that endeavor. You could also offer to stay on at your job as a consultant.

The downside to this strategy is that you may potentially forfeit your early retirement offer and have your salary reduced. Try to negotiate a new, limited position at lower pay as a prerequisite to an early retirement offer if possible.

Reassess your personal finances

Carefully go over your savings, debts, expenses, investments, budget and overall personal finances. Try to calculate how long can you afford to be unemployed before accepting an early retirement offer.

Consider your mindset

What would you do after accepting early retirement? Do you want to sit at home? Would you travel?

Or would you try to reenter the workforce as a middle-aged or elderly person?

Going from a lifetime of work to a full dead stop to retirement can be psychologically taxing and cause depression. Think about what you would do if you accepted early retirement.

Start job searching

If you have been offered early retirement you may be running out of options relative to your continued employment.

Start calling in some favors, reaching out to friends and professionals that you know who work at other companies and looking for new work.

It’s better to have some options and not need them than need them and not have them.

Recommended Articles

Stay Healthy by Eating Fresh Vegetables in Season This Summer

One of the sad victims of globalization has been the end of eating seasonally. Most people stroll through the supermarket picking up oranges in December and strawberries in February, not

5 Lucrative Side Hustles for Part-Time Retirees

Until you plan everything out, planning is nothing. And while most retirees plan to retire and stop working, many end up working again. More than a third of retirees who

Make Your Kid a Millionaire With This Simple IRS Program

Individual retirement accounts (IRAs) are an excellent investment option for people who are looking to save up for retirement. Contrary to what some people think, IRAs are not just meant

Legal Cannabis Now Powerful Enough to Replace Dangerous, Addictive Painkillers

Opioid abuse and addiction is a huge issue in the United States. In addition to this, long term use of these pain killers can lead to various health problems. These are

4 Great Places to Retire Near Water

The hard reality of retirement is that most people don’t plan for it until it is too late to be implemented feasibly. Or they don’t exactingly calculate how long their

Warren Buffett Learned Everything He Knows from This One Book

Value investing is the name of a particular investment philosophy that stresses a long-term approach to investing. Rather than follow short-term trends in the market, value investing relies on thorough

Exposed: Pharmaceutical Companies Spend Over 18 Billion Annually on Gifts to Doctors

I worked in a busy family physician's office about 18 years or so ago and was astounded by how many drug reps came in and out of the office loaded

6 Secrets to Getting Hired After Age 55

Finding a new job after a certain age, especially when you are in your late 50s, can prove to be quite challenging. Older workers have a lower unemployment rate than

Before You Sign, Read the Pros and Cons of Timeshares

Timeshares are upscale vacation and recreational properties that are simultaneously owned by multiple investors. However, there is a catch. Each owner is contractually obligated to only visit and inhabit the

6 Fast-Food Facts That Will Make You Put Down That Burger

Americans are more overweight than ever before. Sedentary lifestyles and poor diet is to blame. The convenience of fast food is also a factor. Morbid obesity increases the potential for

7 Common Impulse Purchases People Regret the Most

The bane of consumerism is that people voluntarily buy things that they don’t need or want for its own sake. By some estimates nearly 80% of American consumers buy some

10 Detoxifying, Filling Foods to Help You Slim Down Without Deprivation

Fad diets are a trend that may never die, as much as most of us want them to. It’s high time we took the focus off skinny and turned to