How do you evaluate if a voluntary severance or early retirement package is the right deal for you? There are a few things you should consider.
First, figure out your medical coverage. If you’re retiring before the age of 65, you won’t be covered by Medicare. You need that medical coverage at this important time in your life. Look for what’s called retiree medical coverage in the package.
Second, can you hold out longer for a better deal? Sometimes, it’s a bit of a gamble, but companies go through multiple rounds of layoffs and they offer better packages as they go along.
Finally, is this in your overall retirement plan? Do you either need to or want to work longer? Then taking money from the company and leaving your job may not be the best option for you.
We have more detail on evaluating a severance package or early retirement offer here.
Need help weighing your options? Contact us to see if we can help you!