Early retirement? What’s that?
Posted on July 7th, 2009 – 11:04 AMBy Kara McGuire
MPR has a story on colleges that hope to ease tight budgets by offering incentives to employees for taking early retirement. Among the perks being offered to older workers: Health benefits and cash payouts.
The hope it that near-retirees with bigger paychecks will leave and schools won’t have to lay off younger, (read: cheaper) employees. Although as a younger employee with decades of work ahead of her, I’m sure my counterparts in the higher education field appreciate it!
Frankly, I’d be surprised if many employees, especially professors protected by tenure, would leap at the opportunity given the economy and the stock market’s performance of late. But if the pot is sweetened enough….
What would it take for you to retire early by choice? What types of benefits would you need? Could you swing it financially? And aside from money, would you even want to leave your job if you think you could live to 90?
5 Responses to "Early retirement? What’s that?"
Sometimes it’s better to stay put.
My biggest obstacle in retiring early is losing benefits
I know that the only thing keeping my parents from retiring early is health insurance. If they had access to that, they would be done working today.
My father took and early retirement buyout when he was 60 as the company offered pay him an amount equal to his SS payment for 2 years and continue health coverage until 65. Nearly everyone in the future will need some type of corp plan until 65 unless the game changes dramatically.
1. Enough to live in very small house.
2. None. Health benefits will be paid by self as means testing will come into play…just wait.
3. Yes.
4. Yes.
If early retirement is defined as pre medicare, the answer is health insurance. Our retirement plan offers continuation of single coverage for a little under $500/month, dependent coverage is about $600 more. The higher figure represents 1/4 to 1/3 of many employees’ retirement income. They would live in near poverty until qualifying for Medicare.
