What to Consider Before Taking a Voluntary Buyout
What to Consider Before Taking a Voluntary Buyout Javascript must be enabled to use this site. Please enable Javascript in your browser and try again. × Search search POPULAR SEARCHES SUGGESTED LINKS Join AARP for just $9 per year when you sign up for a 5-year term. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Leaving AARP.org Website You are now leaving AARP.org and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.
It’s also important to consider how a buyout could affect . “If continued medical insurance is not part of your parting package, then you must add this new expense to your monthly budget,” Hemry notes. Entertainment $3 off popcorn and soft drink combos See more Entertainment offers > Hemry says a worker negotiating a buyout must decide whether more money or benefits is more valuable. “Perhaps your spouse is employed and you can have medical insurance on their plan,” he says. “In that case, go for the money. Or it’s the other way around, and you really need the insurance coverage more than the money.” AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS
Buyout Offers Raise Important Issues for Older Workers
Their decisions can affect Social Security payouts and health care costs
GETTY IMAGES Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. For older workers close to retirement, the decision on whether to accept a buyout — or stay put and risk being laid off — can be a difficult one that potentially affects their retirement income and health care expenses. That’s why financial professionals advise them to carefully weigh pros and cons and try to that’s best suited to a worker’s circumstances. Kurt Hemry, president of Ironwood Wealth Consultants in Portland, Ore., reminds older workers that taking a buyout has potential Social Security implications. “Benefits are based on your 35 highest earning years. For most people, their income is higher at the end of their career, so not having those higher years could lower your future Social Security benefit,” he says.It’s also important to consider how a buyout could affect . “If continued medical insurance is not part of your parting package, then you must add this new expense to your monthly budget,” Hemry notes. Entertainment $3 off popcorn and soft drink combos See more Entertainment offers > Hemry says a worker negotiating a buyout must decide whether more money or benefits is more valuable. “Perhaps your spouse is employed and you can have medical insurance on their plan,” he says. “In that case, go for the money. Or it’s the other way around, and you really need the insurance coverage more than the money.” AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS