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Old 04-12-2016, 01:43 PM
 
Location: PA
780 posts, read 400,727 times
Reputation: 1255

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Has anyone here ever retired and gone to work full time the very next day? I have put in 30 years at the same fortune 100 company. They were bought out several years ago and as part of the buyout, the new company which already had 42,000 employees that were paid at a much lesser rate and had no retirement, decided they could not afford to continue our retirement plan with the additional 88,000 employees they gained. They did not cut our pay (thank god) but for the last five years I have worked with no retirement benefits. I will be able to draw my frozen retirement which will amount to about $1700. a month plus $1900. a month SS at 65.


I have been thinking of taking an early retirement and going somewhere and starting a new job (for less money) that has retirement benefits. The job I am looking at pays $40-45k and no stress, versus lotsa stress and 100k+ I make now. I am wondering if I should stay and just stuff money into the 401k plan where I am and retire at 62, or get out now and work somewhere else for 10-15 years. Thoughts? Anyone else do it?
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Old 04-12-2016, 07:26 PM
 
Location: Columbia SC
9,032 posts, read 7,791,206 times
Reputation: 12288
My wife retired on a Friday and back to the same job on Monday. She retired from a state government upper management position and as part of the deal, she was hired back on a one year contract, for 3 days a week at the same yearly salary, and she was paid on a 1099. That was a good year.........LOL
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Old 04-13-2016, 08:11 AM
 
Location: Arizona
5,980 posts, read 5,330,682 times
Reputation: 18090
Quote:
Originally Posted by johngolf View Post
My wife retired on a Friday and back to the same job on Monday. She retired from a state government upper management position and as part of the deal, she was hired back on a one year contract, for 3 days a week at the same yearly salary, and she was paid on a 1099. That was a good year.........LOL
Great use of our tax money.
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Old 04-13-2016, 08:14 AM
 
Location: MMU->ABE->ATL->ASH
9,134 posts, read 17,186,410 times
Reputation: 9982
My Dad did, Left on Friday with a early out package turned in his ID card. Was back on Monday, as contractor with new ID card, Same Desk, Same phone number....

Did the contractor job for 2-3 years, and got his Pension also.
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Old 04-13-2016, 08:17 AM
 
Location: Tennessee
23,714 posts, read 17,668,720 times
Reputation: 27783
Quote:
Originally Posted by thinkalot View Post
Great use of our tax money.
Quite common actually in government work. Long-time government employers can retire with 20-30 years in (often by 60, at the latest) then are hired back on as "consultants," making considerably more than what they were.
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Old 04-14-2016, 05:15 AM
 
Location: RVA
2,175 posts, read 1,274,479 times
Reputation: 4500
Quite common in private sector too. The salary may be higher per hour, but total cost to the employer is far less because of no benefits. It is a smart use of tax money, if the position is still required. They aren't stupid, there is a reason that makes perfect sense, and why it happens so often.

Any time the budget doesn't support the contractors they can be let go on a days notice. Instant savings. Its a win win for everyone. A 60% hourly raise is not typical, though, I agree. We see about a 20-25% one.
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Old 04-14-2016, 06:33 AM
 
Location: middle tennessee
1,927 posts, read 996,754 times
Reputation: 7020
I got fired once and went back the next day to finish up. I wish I had a picture of my boss's face when she walked by my office and saw me at my desk.
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Old 04-14-2016, 06:51 AM
 
Location: Herndon, VA
2,092 posts, read 2,121,727 times
Reputation: 7433
Quote:
Originally Posted by thinkalot View Post
Great use of our tax money.
Since we're all ignorant of the situation, for all we know it was. For someone that "thinks a lot" you are sure quick to make a judgement with zero facts.
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Old 04-14-2016, 09:00 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,697 posts, read 40,084,074 times
Reputation: 23860
I have 3 friends that were able to get golden parachutes 5x from the same company. They usually took a few months or a yr off between gigs.

It us quite common for early retirees to immediately start another j-o-b. For many it works great, especially if they have negotiated for more Paid leave in new position. That is a winner. I need at least 12 weeks between gigs to catch up on projects around the farm.
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Old 04-15-2016, 12:32 PM
 
Location: Eastern Washington
14,292 posts, read 45,013,833 times
Reputation: 12934
Quote:
Originally Posted by Bearsdad View Post
Has anyone here ever retired and gone to work full time the very next day? I have put in 30 years at the same fortune 100 company. They were bought out several years ago and as part of the buyout, the new company which already had 42,000 employees that were paid at a much lesser rate and had no retirement, decided they could not afford to continue our retirement plan with the additional 88,000 employees they gained. They did not cut our pay (thank god) but for the last five years I have worked with no retirement benefits. I will be able to draw my frozen retirement which will amount to about $1700. a month plus $1900. a month SS at 65.


I have been thinking of taking an early retirement and going somewhere and starting a new job (for less money) that has retirement benefits. The job I am looking at pays $40-45k and no stress, versus lotsa stress and 100k+ I make now. I am wondering if I should stay and just stuff money into the 401k plan where I am and retire at 62, or get out now and work somewhere else for 10-15 years. Thoughts? Anyone else do it?
Have not done it and don't know anyone who has, but, would like to point out that typically one has to work a job 5 years to have retirement "vest". 5 years of service at a $40-45k job would probably not yield that much money, a more or less "typical" retirement formula is 1~1.5% X # service years X average of highest 5 annual salary. To make the math easy to do in my head, let's say 1% and that your average salary over 5 years is 50K. So you would get 5% (1% X 5 years) of $50K annually as a pension. Unless I'm doing the math wrong, your annual pension would be $2500, just over $200/month. Maybe you get COLAs, maybe not. But from a financial standpoint, I think you would be (far) better off staying put and packing your 401K to the max. Then again, a pension by definition is intended to last your entire lifetime. (but ask a retired Pan Am employee if a pension is really guaranteed money)

That said, if you really hate the current job, if it's driving your blood pressure up, and if you would really like the smaller job, if it would essentially be getting paid to do a hobby - I can't quantify that, but the more true the above statement is, the more it points to making the change.

Other considerations would be your current age, and how well you and any family members (is Bear a cat?) would respond to a large cut in take home pay, and what personal expenses (dry cleaning, a personal car newer than X years, clothing purchases) you have with the "big" job would go away with the "small" job.
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