Would Two Years Be Enough to Retire Early?

Would two years be enough

Early out incentives are common for businesses looking to reduce expenses without resorting to layoffs. For some businesses, those particular incentives can be more generous than others.

Coming this spring, FedEx will be offering some of its employees up to two years of pay as an early out incentive. It’s an organizational effort to reduce costs by up to $1.7 billion within the next two years.

Employees who volunteer to leave FedEx by May 31 will receive four weeks of pay for every year of service. That incentive maxes out at two years of total pay.

What do you think of the early out incentive?

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5 Comments

  1. Ken

     /  February 8, 2013

    Early outs are a great thing for a company to downsize the high dollar worker. The bad thing is that in the majority of the time the job knowledge goes with the individual and is lost forever, because there is not an attempt to have a younger employee be trainned by the older employee. No attempt is make to keep the knowledge from leaving. A lot of employees do not take the incentatives because why leave a job you like when you would have to go and get another job to pay the bills.

  2. Anonymous

     /  February 8, 2013

    I would only take the incentive if it meant I could really retire, not go out and get another job.
    However, if it was within two years of my planned retirement, I would “jump on that train” in a heartbeat!!!

  3. Kelly

     /  February 8, 2013

    It is better than a lay off.

  4. Anonymous

     /  February 8, 2013

    Yes. Many large companies offered the same generous buy outs, if not better packages back in the 80’s and early 90’s. AT&T is one example. Employees who wanted to continue to work had ample time to interview and find new employment without having to worry about losing their homes or putting food on their table. The packages of $20,000-$15,000 is not enough after taxes. This amount is just a bonus for the employees that were retiring or thinking about retiring anyway. In this economy, someone taking such a small incentive at age 55 would not be able to find other employment quickly, and possibly not at all. If the Postal Service is serious, they need to offer a better incentive. It may cost them more now but in the long run, it might save the Postal Service. No money? Let Congress worry about that problem since they are not doing anything but bankrupting us anyway.

  5. Jonn

     /  February 8, 2013

    I think 2 years of pay is worth considering. It’s enough money to pay off debt and start a new career doing something I love doing, and I could afford to make less doing it because I’d be debt free. Like someone else said though, I don’t think $15k is enough to consider unless I’m close to retirement. I might consider a buyout in a couple decades, but it had better be a lot more than $15k because I doubt it’ll buy much in 2033.

    As for all the folks leaving USPS now, we’re going to replace that knowledge with CCAs. Knowledge is the glue of an operation, and if we replace it with non-career people with no loyalties to USPS, service scores will definitely drop. A CCA position is just something to fill an income gap until something better comes along. We’ll have to offer them a career position quickly if we hope to keep them around long-term and maintain the service customers have come to expect.

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