Author: MJT
The Benefits of Early Retirement for Both You and Your
Employer
Whether we’d all like to acknowledge it or not, early
retirement can benefit both and employee and an employer. Of course your
personal retirement will be a time for celebration and reflection, a time to
look back on your successes and the journey of your career. But realistically
early retirement is also a benefit for your employer as well, especially if
they are downsizing or are trying to stimulate turnover to bring in younger
employers at lower salaries. If your employer is offering early retirement benefit
packages, don’t view it as an insult to seasoned employees; take it as an
opportunity to start the next phase of your life.
Financial Benefits of Early Retirement Programs
Accepting an early retirement program from your employer
allows you to retire before your legal age requirement without suffering any of
the financial penalties otherwise associated with early retirement. Essentially
your employer is agreeing to compensate you as if you were legally eligible for
retirement, including a monthly check and paid health insurance. Another
benefit of early retirement is that you may also be offered a higher pension.
How does this benefit your employer? Paying you a slightly higher pension and
bringing in someone with less experience at a lower salary means a lower cost
for them in the long run. This may sound cold to you, after having put in so
many years in your profession, but if you were already thinking about retiring,
you might as well taking advantage of the financial benefits of early
retirement.
Other Benefits of Early Retirement
Aside from allowing you a higher pension, and saving your
employer money in staffing, there are many other benefits of early retirement.
If you no longer enjoy your position as much as you once did, you are doing
yourself a favor by considering other options a few years early, and you’re
doing your employer a favor by allowing them to put someone in your position
that still has the desire to be there. Your early retirement could allow you to
explore a second career. By the time those people who waited for legal
eligibility retire, you’ll be a few years into an exciting new opportunity.
You’re never too old to start something new, and you’re never too young to
start preparing for the next stage in your life. Take advantage of all those
years of saving and planning, and reap the benefits of early retirement.
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