From Yahoo News
The Downside of Early Retirement
By Tom Sightings
A lot of my fellow baby boomers, in their 50s and early 60s, find they have an option to take early retirement. Some are teachers or other public employees who can opt for retirement after a certain number of years of service, which often puts them in their 50s. Others have been offered an early retirement package from their company. The package seems like a lot of money, so they're tempted to take it.
First of all, if you have a choice of when to retire, consider yourself lucky. Many employees, including yours truly, get booted out of the workplace when they're in their 50s. Suddenly there's no more paycheck, no more benefits and no more contributions to your 401(k) plan. People who take early retirement are typically left to their own devices.
For some people, this can be a good thing. One colleague of mine, age 52, used his layoff as an opportunity to change careers. He found a fast-track program to train as a science teacher and now happily teaches in a middle school. Another friend took a package, then got a job as an office administrator at a local counseling group. He makes somewhat less money, but there's less stress and no more commute.
But far too many 50-somethings leave their familiar place of work only to find that they are unemployable at any comparable position. I have one friend working for minimum wage at the checkout counter at the supermarket. Another friend takes tee times at our public golf course for - you guessed it - minimum wage. Still another friend, who thought he could afford to retire, is now trying to sell real estate, which is no easy job in this economy.
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The Downside of Early Retirement
By Tom Sightings
A lot of my fellow baby boomers, in their 50s and early 60s, find they have an option to take early retirement. Some are teachers or other public employees who can opt for retirement after a certain number of years of service, which often puts them in their 50s. Others have been offered an early retirement package from their company. The package seems like a lot of money, so they're tempted to take it.
First of all, if you have a choice of when to retire, consider yourself lucky. Many employees, including yours truly, get booted out of the workplace when they're in their 50s. Suddenly there's no more paycheck, no more benefits and no more contributions to your 401(k) plan. People who take early retirement are typically left to their own devices.
For some people, this can be a good thing. One colleague of mine, age 52, used his layoff as an opportunity to change careers. He found a fast-track program to train as a science teacher and now happily teaches in a middle school. Another friend took a package, then got a job as an office administrator at a local counseling group. He makes somewhat less money, but there's less stress and no more commute.
But far too many 50-somethings leave their familiar place of work only to find that they are unemployable at any comparable position. I have one friend working for minimum wage at the checkout counter at the supermarket. Another friend takes tee times at our public golf course for - you guessed it - minimum wage. Still another friend, who thought he could afford to retire, is now trying to sell real estate, which is no easy job in this economy.
Read more from Yahoo News >>
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