40 years service...

[Andy4639]

I have given Duke Energy 40 years of my life. They are now offering a severance package to us. They want 160 people are so to take it voluntary but if not they are going to pick them. You get the same package either way. I want to take it but not sure I should. I'm only 58 so I can't draw until I'm 62.
I'm 100% invested 401K plus I have a retirement savings account and some other stuff but man it's going to be some sleepless nights come the next few weeks. We have to let them know by Nov 12.
My wife also has 40 years service with them so she has the same options.

[Custom 68]

Andy, as you know I am sure health insurance is the big problem. Sometimes with these early out packages they will include that for some time. My folks retired early and loved it. They took a risk and purchased a high deductible insurance more for the big things. That risk paid off and they didn't need the insurance for the few years until Medicare kicked in.
You have lots of hobbies and things to occupy your time so that wont be a problem so to speak. Tough decision but you may not get the opportunity again.
Good luck
Dave

[Andy4639]

Yea we both get 6 months free insurance and 1 year salary paid in a lump sum each in Jan of 2019. Then $500.00 a month towards insurance each after that. I want to take it but man it's a big if!

[Stocker]

I went through a similar experience 9 1/2 years ago and you're right, it's a very big deal. So many things to consider. My only real suggestion is if you don't already have a trusted financial advisor, it is crucial to get one. Make sure he or she has all the right credentials (CFP etc etc). Those folks know all the angles, not just about investing but also how to avoid pitfalls, what to do and what not to do. Ask friends & family for their recommendation (for an advisor, not for your retirement decision).

In my case, I was in a group that was offered an early severance package, voluntary unless not enough people took it.They also offered a bonus which worked out to nearly the same pay as if I worked to age 62 (from 59+). We had the option of taking a lump sum, and the GATT rate was favorable which boosted my payout a bit. The company pays 90% of our health benefits for life. Considering I was getting hammered by rheumatoid arthritis at the time, I couldn't pass it up. No regrets, I am very glad things worked out the way they did.

It sounds like you're being offered a good severance package. I would also want to take advantage of it, but you're dead right to be cautious & even a bit nervous. It also sounds like you're financially prepared for the 4-year gap until age 62. If you can swing it, consider waiting (maybe until 66) to apply for SS benefits. That's a decision that doesn't need to be made right away, and a great subject for discussion with your financial advisor. Ours did a great job maximizing our benefits.

Best of luck with your decision and try not to lose too much sleep over it! That goes for your wife too. Should be plenty of interesting discussions in your household over the next few weeks! I'm excited for you both and looking forward to hearing how it goes.

[Coley]

I fully agree with the recommendation on getting a financial advisor.
That is key to know where you are at and where you want to go....at least as far as the financial picture is concerned....so do that quickly and get that out of the way and some numbers on paper so its fully understood.

However, that said.....that is not necessarily the 'big picture in this type of event.
The bigger picture relates to what in this possibly upcoming event is ominous or foreboding...and this is a personal and personality issue not a financial challenge or issue.
After 40 years at one place (very rare these days) the thought of change is something a lot of people fear the most, certainly older (over 50+) people.....and the idea of not having the same place to go to and the same routine is very difficult for some people to embrace.

I am in mid-late 50's and I'm surrounded by many people...not all, but a lot, within my demographic...friends and family, who do not deal well with change any more.
It's rarely a financial issue it seems....

The biggest thing to consider is what you would embrace in the event that it happens vs. what you would fear from it.
(noting 'fear' is always a strong word to use around guys...but it is relatively accurate)

Noting that when you make a decision out of fear...you usually never make a good decision.

Here is something I always recommend to people around potential (short term?) life changes or events....imagine a 5 year snapshot of yourself from now......and what you want to see in that snapshot in terms of where you are at, what you are doing and who is with you.
Do you see yourself at the same place if employment continued?...retired? travelling? different hobbies? ...a perfect day?

food for thought....and keep us posted on how things are going.

All good
Coley

[Andy4639]

Yes I have a advisor but haven't really talked to him about it because we both wanted to work until 62...BUT the deal seems like a good chance to get out early and with the 1 year salary for both of us will give us time to see how we do.
I can always work outages a few times a year are hopefully work on golf carts and have spending money.
The beach house is paid for the house we live in is paid for and our son pays the house payment that he lives in. So we can sell our house and move to the beach! I could work winter months on carts and have the summer months off.

[Stocker]

Coley makes great points that I totally missed. Andy, you seem to be far better prepared for retirement than many people are. Part of the process is simply wrapping your head around the changes coming in your life. As you know, having a hobby is pretty darned important. Idle hands and all that....

[Redneck Rydes]

I had a offer at GM when I was 46 $3000.00 a month for life and full benefits for life, I took it, never looked back,busy every day, go for it and enjoy the rest with no alarm clock,lol

[Andy4639]

Originally Posted by Redneck Rydes

I had a offer at GM when I was 46 $3000.00 a month for life and full benefits for life, I took it, never looked back,busy every day, go for it and enjoy the rest with no alarm clock,lol

My dad is retired from GM. He got to go at 54 and he has full benfits. He is now 93.

I have plenty of hobbies that's for sure. I can stay busy.

[Boog]

Well congrats on your pending retirements. 40 years with one company is something. My mom and grandmother both worked 40+ years in a garment factory and my aunt and uncle both worked 44 years for South Western Bell. I've got 27 in with this company but I won't make 40. I'm looking for an out in the next 3 years. It sounds like you are all set.

[LockDoc]

-
I retired at 55 of my own choosing. My main criteria was that everything was paid off and that I shouldn't have to make any major purchases for 7 years. Everything worked out for me and I have been retired for 20 years now. My cars and trucks have been my hobby and I have made extra money selling some of the vehicles as I finished them and selling stuff on Ebay and Craigslist to support that hobby. No regrets here.

LockDoc

[Indian113]

The only draw back I can say is I hope you have better luck than I did when I retired early. The Company I retired from guaranteed Health Ins. for my lifetime, But the company that Bought my old Company OUT dropped our Health Ins. . The retirees filed a lawsuit and we lost because the Judges said the New Company Never Agreed to cover us. Keep The Cost of Health Insurance in mind, even above your income. One good life changing Sicknesses can Drain a Savings Account Good Luck Andy

[Coley]

Quick question about healthcare coverage:
Can't you just buy healthcare coverage?...ie: by the month or by the year?
How much does it cost?...it might be worth it...depending on health vs. income, age, etc.

We are currently paying about $210/mth. for us up here on the Canadian side but I'm not sure what that equates to on the U.S side....just curious.

all good
Coley

[71CHEVYSHORTBED402]

Originally Posted by Andy4639

Yea we both get 6 months free insurance and 1 year salary paid in a lump sum each in Jan of 2019. Then $500.00 a month towards insurance each after that. I want to take it but man it's a big if!

$500 insurance for life I assume. How does that compare to the cost of insurance now?

If your investments leave you real comfortable, then perhaps retirement is the option. Then again you're 4 years away from SS. Do the math, 4 years of SS benefits Vs one year salary + no alarm clock. As already said, you can never count on another chance. If you do retire, make sure you stay busy. Go places, do stuff.

[Andy4639]

Originally Posted by 71CHEVYSHORTBED402

$500 insurance for life I assume. How does that compare to the cost of insurance now?

If your investments leave you real comfortable, then perhaps retirement is the option. Then again you're 4 years away from SS. Do the math, 4 years of SS benefits Vs one year salary + no alarm clock. As already said, you can never count on another chance. If you do retire, make sure you stay busy. Go places, do stuff.

Yes, the $500.00 that is until you can draw full SS. Then it's gone. I have plugged the numbers in myself on the internet retirement calculator and they all show almost the same thing. I want to talk to a person that does this for a living though before I decide.

Coley,
from what I have been told insurance here in the US is all over the place. It depends on your health at the time you get it also. There are guy's here at work in the late 60's because their wives have cancer and can't get insurance on them if they retire. I've been told any where from $500.00 a month to $1500.00.

[Keith Seymore]

Subscribing....

I'll have 40 years with GM in June. No talk of retirement, though.

K

[67ChevyRedneck]

You said there's a chance they could "pick" you, or both of you, as well, so I would try to be prepared for that.

Insurance is a kicker.

Is the $500/month only if you keep the company insurance, or is it a stipend to get whatever insurance you want? The kicker with keeping with company insurance with COBRA or however they do it, could be that it could cost 1K+/month. That's what happened to my FIL when he retired early, but for them it was only a year.

[flashed]

Andy ,good luck with your decision ,its gonna be a tough one for sure . Im going to follow along to see how it turns out . I just turned 56 today and can start drawing my wife's SS when I turn 60 as a Death Benefit but not sure if there is an income cap on top of that . Plus , I love my job so Im not planning to leave at 60.

[Brentwe]

I feel your stress.
Just retired from my co, was going thru the same thing, volunteer/voluntold cuts. You sound like you are in pretty decent shape, If you have met your targets except for your age target, why not.
Those that I left behind that were in the same situations spent the next time period of uncertainty, moral and productivity was low. Sounds like you may end up there anyway,the stress can wear you out.
I have not looked back. Doing some contract work and hobbies to keep me busy.
PS, worked for Duke during their foray into the Canadian gas business,

[FleetsidePaul]

I pay $410 a month for some pretty good insurance. Maybe because I'm in such good health (cough cough).

I retired early. Didn't really want to, but there was no work. Computers took the jobs. We went from a crew of 50 to 5 old fart leftovers. Me included.

They didn't offer me any package. They just threatened to send me to some hell hole where there was work and put me up in a motel. I said no and walked. Best thing I could have done. It was scary. Very scary. But I'm glad I did it. But like you all my stuff was paid off and I've got a good financial adviser. It's all good now. Except my wife works me harder than the company did. (I get a list everyday)

[Andy4639]

Originally Posted by 67ChevyRedneck

You said there's a chance they could "pick" you, or both of you, as well, so I would try to be prepared for that.

Insurance is a kicker.

Is the $500/month only if you keep the company insurance, or is it a stipend to get whatever insurance you want? The kicker with keeping with company insurance with COBRA or however they do it, could be that it could cost 1K+/month. That's what happened to my FIL when he retired early, but for them it was only a year.

Jesse the $500 is for where ever I choose. I want leave any money with D/E except for what they match if given that option. Haven't had that talk yet.
I have a meeting Friday with my finance guy so after that I'll have a better feel for all this.
No matter what he say's we both are pretty much taking this even if I have to come back and work outages.

[leddzepp]

I’ve never met anyone yet that regretted retiring early, no matter how it turned out afterwards...even if that meant eating ramen noodles and hot dogs. My dad retired the day he turned 55 and wished he could have sooner I’m 44 as of today and have exactly 11 years left at my current job. When I retire I’ll have 36 years with the company which is more than enough of my life to have given them. Then it’s off to Burger King to be a whopper flopper (or similar job with minimal responsibility) for fun money till I’m 65 then start drawing out of my 401K.

[78chevstepside]

Retired early at 55 after 38 years as a field construction boilermaker . I live off my pension and buy my own health insurance . Kiaser costs me and my wife 1400 a month . Been retired for 2 years . Life is great . The age was raised to 58 for early retirement right after i retired . No regrets. Best thing I ever did was join the boilermaker union as a field apprentice after high school .

[Ironhorse]

Andy, good luck with your decisions. Lots of unknowns to think about. You and your wife's health, medical insurance, SS, (take it early or wait til full retirement), supplemental health insurance, prescription coverage, home mortgage, the list goes on. Time for a serious talk with your financial guru.

I left the Boeing Aircraft Co. after 36 years on a voluntary lay off. Was not my layoff notice but had been thinking about retiring. Had just turned 60, house paid for, cars all paid for, no real debt, all three kids out of school/college and was working WAY more overtime than I wanted at 60 years young. 26 man crew had been peeled down to 6 with the layoff notice looming. If I had stayed I would have been top t**d on the s**t wagon working 2-3 weeks in a row, 10 and 12 hour days. Crane operator and aircraft ramp movement = lots of stress. Didn't need that any more. Sleep less nights wondering if doing the right thing. Pulled the trigger and have NEVER had a regret to this day. Been eight years now, still playing with cars and trucks. Working now on my '57 2dr sedan. Wife is also retired and life is good. Have not touched my 401/IRAs yet but Uncle Sam wants his cut next year when I turn 70 1/2.

Sounds like you have all your ducks in a row but...proceed cautiously and get all the info you can. Best of luck in your decisions. Just remember, if you do retire, make sure you stay active. A person NEEDS a reason to get out of bed in the morning and sitting in front of the tube isn't it.

[Andy4639]

Oh I have several reason's to get up. Building golf carts and chopper bicycles and working on my truck and cars along with yard work and going to the beach. It's just taking that giant step. We talked about it last night and the wife has agreed we both, have had enough and it's time to go.