Early retirement is something that many of us may strive for, when it is our decision. However, in recent years, early retirement has become an increasingly important issue for many people due to corporate restructuring and downsizing.
If you are presented with an early retirement proposal, there are a number of issues that you must consider. This section provides you with information that will help you make your decisions.
The difference between a voluntary and involuntary early retirement is that the first is a decision that you have consciously made and have probably been planning for years, whereas the latter is a decision that your employer is making for you, perhaps sooner than you might have intended.
Let's focus on the issues surrounding involuntary retirement, although many of the issues discussed will be relevant to all individuals evaluating retirement packages.
Please note that the term "retirement package" is interchangeable with the term "severance package".
