Do you expect to see packages for retirement eligible employees first? I’m 27 years in and just turned 60. Will likely go if 6 months or more is offered. If not, I will likely see how things play out. I was going to stay another couple years, but who knows how things will go. I’m in manufacturing, so likely a little safer than some……Thoughts?
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I could see them completely freezing the pension this year or but more likely capping it at like 30 years. The way Ford very well may look at it is that they don't want high interest rates to get in the way of people retiring in conjunction with paying outsized severances to make/get people to away. By this they don't want people telling themselves that they now have to stay x more years because they're set to lose 20, 25, 30% in the foreseeable future, which could play out as a baseline case now. But on the same token it could get equally tricky for them if they were to completely freeze it, only to have people rationalize staying a lot longer because it no longer adds to retirement and they 2x now can't afford to leave. Bottom line is that this could turn out to be the land of oz for Ford from the law of unintended consequences standpoint.
I agree ....lump sum will be 20% less jan 1 i think we are all hoping for some walking cash 800 248 4444 nesc
Agree with @1ull we ran my spouses #s retiring now and retiring after rate reset. There was a $150K difference. So his plan is to retire before rate reset and take the money and run. It would be nice to get a package involuntary or voluntary, but if not he will still retire.
@OP run your numbers and make an informed decision.
You should leave this year. The pension lump sum will not improve over the next few years. And if rumors about converting pensions are true, it will be converted at an unfavorable rate after this year. There really doesn't appear to be much benefit to hanging on a few more years.