Friday, December 11, 2009

Early Retirement...What's a good offer?

By Robert Katz

With the economy the way it is right now and the exceptionally high rate of unemployment, companies are continuously looking for ways to decrease their costs. One of the common strategies they would use would be to encourage older employees to consider early retirement plans. Yet, when preparing for retirement we usually have a set date in mind in which we would have, or hope to have, met our financial goals. So, when considering and early retirement package you must be very careful to make sure the deal is substantial enough to cover the loss of your expected future income. There are some important things to consider such as the financial health of the company; for if you think you may loss your job before you planned to retire any package may look that much more attractive. Also assess the market to see if there are any other opportunities for you in the job market else where. Review what you are being offered and always make sure you know how you are going to be receiving the packages benefits. Making sure to assess your expenses and the taxes you'll have to pay due to the acceptance the package as well because these can make it seem significantly more attractive than it actually is. You should also always make a counter offer because it is more likely than not that due to the economic situation they will initially offer you less than what they are actually able to give you to save on costs. Finally, always make sure to read the fine print.


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