| "Retirement has killed more people than hard | | | | insurance coverage. Your best options maybe an |
| work ever will"- A Wise Man | | | | individual medical policy or possibly coverage |
| It is not surprising these days to hear about | | | | through your spouse's employment. |
| persons' being offered and receiving early | | | | 2. You maybe able to continue your life insurance |
| retirement packages from employers. This is just | | | | coverage but this is usually very limited and and |
| one of a number of restructuring and downsizing | | | | again you could be responsible for the cost. If |
| method used by the corporate world to cut cost. | | | | your employer doesn't offer life insurance, then |
| And most recently you saw it used in the | | | | it's important that you get your own coverage. |
| restructuring exercise of the Royal Bahamas | | | | What about my pension? |
| Police Force. | | | | If your company has a pension plan, you usually |
| So whether you are a part of the private or | | | | can't start drawing from that pension until you |
| government sector it is something you had better | | | | reach a certain age but the good thing about this |
| get used to it. And that is why it is so important | | | | is the longer you wait, the more your monthly |
| that you- fully understand what you are getting | | | | benefit check will be. But you should discuss all of |
| before accepting an "Early Retirement" package | | | | your options and entitlements with your |
| There is no question that these packages can be | | | | company's plan administrator or human resources |
| quite attractive, and that is the intent of the | | | | department. |
| employer to make it as attractive as possible | | | | What about National Insurance? |
| from a cash in hand prospective but it may or | | | | |
| may not be a good choice for you. Hopefully, | | | | 1. It is important to note that early retirement |
| once you are done reading you will be | | | | benefit payment from National Insurance does not |
| empowered to look carefully at what you are | | | | start until age 60. So if you retire earlier than age |
| getting before accepting, even if you don't have | | | | 60 you will have to wait for this benefit. |
| an option to refuse the 'package'. | | | | 2. Also, if you rejoin the work force after age 60 |
| So what is this all about? | | | | your weekly salary must be less than $200.00 or |
| An early retirement package is an offer of | | | | monthly $866.67 to continue to receive National |
| money in return for you retiring at an earlier time | | | | Insurance benefits. |
| than you had planned. Most companies include a | | | | What am I going to do? |
| severance pay based on your annual salary and | | | | Apart from all the money issues I feel this is the |
| your years of service. An early retirement | | | | most important question you will have to answer. |
| package might also include benefits such as health | | | | You may have been working for 30-40 year now |
| insurance or life insurance. | | | | that all coming to an end so what are you going |
| Can I afford to this change? | | | | to do. Believe it or not "Retirement has killed |
| To answer this question, you must have a clear | | | | more people than hard work ever will." That's |
| picture of your current financial situation, your | | | | why it's so important that you know what you |
| family's needs, and whether or not you have | | | | are going to do. |
| enough money to continue living the lifestyle you | | | | You may not have realized it but besides |
| are accustomed too for the years of early | | | | providing you with financial stability work also |
| retirement. If you had planned to retire at age 65 | | | | provided four other benefits: |
| and you are now retiring at age 55, will you have | | | | |
| enough money to support you for the additional | | | | 1. an opportunity for you to socialize |
| 10 years? Four steps you can take to prepare | | | | 2. a structured and scheduled environment |
| financially and make the transition less traumatic | | | | 3. status or sense of importance |
| are: | | | | 4. a sense of utility |
| | | | Now that you will no longer be at work you must |
| 1. Eliminate any major debts including mortgage | | | | find activities to involve yourself in that would |
| and car payments | | | | provide these benefits. |
| 2. Create a peace of mind account to deal with | | | | You can expect that With the current economic |
| any emergencies | | | | conditions that companies will continue to |
| 3. Reduce or eliminate your credit card debt | | | | downsize and as a result offer early retirement |
| 4. And practice living on less than you earn. | | | | packages. So start planning now before it happens |
| Do I have appropriate protection? | | | | to you. A helpful resource to help you plan is |
| | | | "Strategies for Achieving A Comfortable |
| 1. Your employers may include health insurance in | | | | Retirement-Your" workbook. |
| your early retirement package but most don't. | | | | "Retirement is the most expensive purchase you |
| And even if it is included you may have to pay | | | | will ever make and it's the one thing you won't be |
| the cost. And the cost may force you to get | | | | able to borrow money for" - A Wise Man |
| your own coverage. So you need to ensure that | | | | Copyright © 2009 - Glenn S. |
| you and your family have adequate medical | | | | |