The Pros and Cons of an Early Retirement Incentive

An early retirement incentive can vary from state to state as well as according to industry. This program is typically found in industries that employ civil service workers as well as with educational institutions and hospitals even though corporations and other employers may also offer this incentive program. However, before someone takes an early retirement, it is important to carefully scrutinize the terms and conditions that apply to the retirement program he or she is looking at. For instance, some companies may require that employees reach a certain age such as 55 and have worked with the company for a minimum amount of years.

 

Reasons Why Some May Take an Early Retirement Incentive

Many people dream of taking an early retirement so that they may enjoy their retirement years at a reasonable age. Others may have other health or quality of life concerns that will be made easier with a retirement lifestyle. In any case, this program can be an attractive prospect. An incentive package is usually offered to an employee who earns a high salary although someone working in a specific department or position may get an offer.

One may decide to take the early retirement incentive if it sufficiently takes care of one’s financial and medical needs. Early retirement may also be a good idea for someone who wants to spend time traveling or even pursuing other dreams. For instance, some people take their retirement as an opportunity to open their own businesses or even find work elsewhere. It is also important to consider any other special benefits a program offers before determining if it is the right decision.

 

Reasons Not to Take an Early Retirement Incentive

Those who truly love their jobs and will miss the social experience of being in the workplace will definitely need to think twice before taking an offer for an early retirement incentive. Even if the special benefits are outstanding, one must weigh these benefits with the type of lifestyle one will lead outside the workplace. If the emotional toll is greater than the potential benefits, early retirement may not be the right choice. Those who do want to go with program need to be sure that the terms of the agreement are as beneficial to them as they are to the employee.

If one is offered an early retirement package but wants to keep working, he or she should check with the rules and regulations of early retirement. Federal law states that everyone should have the opportunity to take an EIP, but no one should be forced out of a position who does not want to leave it. However, the rules regarding early retirement will vary from state to state, so one has to check the local laws in order to be certain.

  

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