Offers of Early Retirement Package

Opportunity Knocks

In some cases, an early retirement package is an opportunity in disguise. Have you been wanting to buy your own business? If so, you now have cash and the free time to invest. Other opportunities involve employees that have other options. For example, if you’ve been working to supplement the family income but your family doesn’t rely on it, then you’re in a great position to reap a nice lump sum. Perhaps you can pay off your mortgage or send your kids to college with your windfall.

Read the Fine Print

They don’t call early retirement a “package” for nothing. If you’ve been offered a package, you’ll receive a huge envelop filled with papers describing the deal. Read it, read it again, and read it one more time. Now, call your tax consultant or lawyer and have them read it. You may be giving up certain rights or opportunities. There may be room for negotiations. Before making a final decision, it pays to fully understand what’s being offered.

When early retirement packages are offered, employers have thought long and hard about these decisions. They will have addressed many of your concerns including possibly offering health care credits, enhancements to pensions, and job placement assistance. Attend all early retirement presentations, company meetings, or seminars and get as much information as possible. Read your paperwork carefully and consult with a tax professional before making your choice.