Home > Okay, I may retire early after all!

Okay, I may retire early after all!

January 29th, 2015 at 02:13 pm

I went to the presentation about the early retirement offer yesterday. I don't yet have my individualized packet which would detail my payout offer, but here is what I have figured out from what they said:

I would get a cash payout of $10,500. I would get another $12,000 to go toward medical insurance, but it would not be designated in any way. In other words, it would be on me to set up my own plan. They would also put an extra $525 into my retirement fund.

Since my monthly medical expense would only be $108 per month for a Medicare supplement, the $12,000 certainly sweetens the pot for me.

On the loss side, I would have to quit on June 30, therefore losing six months of income. So it's basically a $22,525 gain and a $21,000 loss. Almost a wash. BUT -- I would have the luxury of quitting six months earlier for basically the same benefit.

I think I'm going to go for it, if the packet actually comes up with the same numbers.

My numbers are low, because my length of service here is short. Others will get much bigger payouts.

They are only letting 25 people do this, and 79 are eligible. If more than 25 apply, they will make decisions based on the financial welfare of the College and the needs of the departments. Since my payout is so low, I figure I might be one of the chosen.

Freedom in July???? Mind-boggling!

15 Responses to “Okay, I may retire early after all!”

  1. laura/deacon's wife Says:

    Wow! How exciting to have the chance to ponder that opportunity! Good luck in your decision! Smile Smile Smile

  2. MonkeyMama Says:

    It's great that you checked out your options!

  3. chloe Says:

    Maybe I missed this earlier -- why is the college offering these options? Are they trying to decrease the size of their faculty/staff without firing anyone?

    That's great that you'll probably have a reasonable option to consider. Maybe your personalized offer will be more than just a wash Smile

  4. Another Reader Says:

    There are income tax considerations for this offer. Can you put the cash and the health insurance allotment into a 401(k) and/or 457(b) plan to defer the taxes?

    Since your payout is so low, you may be LESS likely to get chosen. Your retirement will have less of an effect on the budget than an expensive employee, so the expensive employees may have a higher priority.

    For me, time is more important than money. Not having to commute through the traffic and bad weather and spending the six months of my time on what I want to do would push me toward taking the offer, unless there was a large financial impact. I would ask a lot of questions, but I would probably sign on the bottom line if the impact were small.

  5. CB in the City Says:

    No, I cannot put it in my 403(b). However, it seems to me the tax considerations are small, since my total income for the year would be about the same either way. Am I missing something?

    You may be right that I am less likely to be chosen. Maybe there will be fewer than 25 who take it!

  6. CB in the City Says:

    Chloe, the College is trying to balance the budget. There is not enough income from enrollment to meet our expenses, so cuts are being made. The early retirement offer is intended to encourage natural attrition. However, there have already been layoffs on the faculty side, and the administrative side will suffer some layoffs as well.

  7. creditcardfree Says:

    Best wishes in making your decision!

  8. Deb Says:

    CB - I would do it for the luxury of sleeping in when you wanted (you've sometimes mentioned not being able to sleep), the savings on the bus pass and wear and tear and gas for your car. You seem the type of person who keeps busy when she wants to be busy. I would definitely go for it! I am retired, and love, love, love it!

  9. Ima saver Says:

    Congratulations, go for it!

  10. VS_ozgirl Says:

    How wonderful that this option became available!

  11. Analise Says:

    I hope it works out that you can retire early. I've never regretted my early retirement and it's wonderful to have total control of your time. Ditto what Deb says about about ways you can save by not commuting.

  12. snafu Says:

    I wonder about your long term retirement plan. How do you see yourself your 1st 6 months as a retiree? Have you a 'bucket list' of transitional activities? Would you want to make changes in your home Travel? Visit grandkids? Work part time hours somewhere else? Volunteer? Take courses woefully unprepared. I floundered for a long time and after the fact, wished I'd made a plan. I ultimately created self employment

  13. FrugalTexan75 Says:

    This sounds like an awesome opportunity!

  14. LivingAlmostLarge Says:

    Congratulations! Of course you are assuming most out of the 79 are in a position to take ER. Many peopel nowadays don't because they are still supporting kids or grandkids and need the income.

  15. CB in the City Says:

    I've been through somewhat of a retirement experience before, when I lived with my cousin in North Carolina. I know too well the lure of lazing around, playing computer games, watching stupid TV, and then feeling rotten. But this time I think being in my own home, on my own time, will make a big difference. My plan is to work on my novel, develop my skills as a painter, and practice playing the recorder, in addition to all the household tasks I need to do. Of course I will spend time with the grandsons, too, and make a few trips, especially to see my granddaughter in Florida. If I'm feeling too much at loose ends, I will volunteer at the library. (I'm a former librarian.) And then of course, there are the frugal living activities -- garage sales, cooking etc. I'm stoked!

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]