The ongoing coronavirus pandemic has ignited a wave of early retirements as companies look for new ways to streamline and reduce their workforce.
The trend has become widespread and is gaining momentum, but don’t let that scare you. Here’s how to negotiate the best retirement package for you!
“Many of these individuals had no plans to immediately retire, but unfortunately Covid-19 has taken this choice away from them,” says Stacey Francis, a certified financial planner in New York and president and CEO of Francis Financial.
This comes at a time when the country is in a recession, traditional jobs are scarce, and health concerns are rampant. Fear among the rank and file over job security is growing, according to financial experts. And it is exacerbated by the fact that one in four baby boomers would rather delay retirement until the dust settles on the coronavirus economy, a new study conducted by The Harris Poll on behalf of the Nationwide Retirement Institute reveals.
That sentiment is due to the fact that additional years in the workforce allows you to delay filing for Social Security. Filing at the earliest age (62) gets you 75% of your annual full benefit; every 12 months of delay past your full retirement age (currently around 66, depending on your year of birth) gets you an additional 8% until you turn 70. Working longer also can mean saving more, living off those savings for fewer years and getting more years of employer-subsidized health insurance.
First, do your homework.
David Rae, a certified financial planner in West Hollywood, California, and president of DRM Wealth Management, is increasingly seeing early retirement packages being offered to his clients — especially in the entertainment field at such companies as Sony.
Continue reading at cnbc.com.