How did you get earliy retirement ??

[Dr Mick 111]

Well this year I hope to be living in Thailand ,I will be be able to live comftable

or very very comftable ,this depends if my company will allow me to leave

and take my early retirement at 55 ,thus allowing me access to my company pension

in which i have been paying in for 38 years.

 

I know the chances of this is only 50/50 due to shortage of engineers,

 

Well I have now applied ,can not go into how im seeking retirement permission as this

is now going through procedures.

 

For the lucky few who have been granted early retirement ,can I ask how this was obtained ?

 

Also is there any BM arm chair lawers who could give me information or advice on this.

 

Or any x HR managers able to give me guidance on this.

 

Note my pension can be paid to me at 55 only if my company give me permission for early

retirement

[Owen` 2]

Here are the things of most interest to you for this sort of arrangement, and I suspect this applies to both UK and US.

 

1) Is your pension to be inflation indexed? Wait, let me reword that. IS YOUR PENSION TO BE INFLATION INDEXED?

 

There is essentially no question more important that this.

 

If it is not, find out what the lump sum payment options are. You will have to do some very serious net present value calculations to see if they are stealing, but you're an engineer so you know how to punch a calculator.

 

2) If you get a pension OR a lump sum, are you permitted to remain within the company's group health plan??

 

You have been with a big company all your life. You Have No Idea How Health Care Works. Please understand this concept. You have NO idea of the real world. If you're a Brit, this doesn't apply . . . yet. If you're American, it applies effective NOW. You have to know if they will let you remain in their group health plan and you have to know if that health plan will cover you outside your home country.

 

3) Do not presume the answer to either of those two questions is forever. A great many companies thought to be immortal are not. Or if they are still around, they changed their nature. One of the VERY FIRST things a company in trouble seeks to rid itself of is indexed pensions and health care expense. Get Educated.

[Dr Mick 111]

Here are the things of most interest to you for this sort of arrangement, and I suspect this applies to both UK and US.

 

1) Is your pension to be inflation indexed? Wait, let me reword that. IS YOUR PENSION TO BE INFLATION INDEXED?

 

YES

 

There is essentially no question more important that this.

 

If it is not, find out what the lump sum payment options are. You will have to do some very serious net present value calculations to see if they are stealing, but you're an engineer so you know how to punch a calculator.

 

I WOULD TAKE % OF LUMP SUM AS THIS IS TAX FREE ,so pay less tax as month pension would be tax

 

2) If you get a pension OR a lump sum, are you permitted to remain within the company's group health

plan??

 

NO I WOULD TAKE PRIVATE HEALTH INSURANCE IN PATTAY

 

You have been with a big company all your life. You Have No Idea How Health Care Works. Please understand this concept. You have NO idea of the real world. If you're a Brit, this doesn't apply . . . yet. If you're American, it applies effective NOW. You have to know if they will let you remain in their group health plan and you have to know if that health plan will cover you outside your home country.

 

IM A BRIT

 

3) Do not presume the answer to either of those two questions is forever. A great many companies thought to be immortal are not. Or if they are still around, they changed their nature. One of the VERY FIRST things a company in trouble seeks to rid itself of is indexed pensions and health care expense. Get Educated.

 

IM TRYING TO GET EDUCATED THATS WHY I ASK ABOUT HOW BM GOT THEIR EARLY RETIREMENT.

 

My post is about getting my early retirement ,because if i get will have no problems with your questions

would have about 130000 bhts month to live on(this is my pension and intrest on assets based on 4%) and still have assets in UK worth over 200000 uk pounds.

 

Thanks for your reply.

[Owen` 2]

>>

I WOULD TAKE % OF LUMP SUM AS THIS IS TAX FREE ,so pay less tax as month pension would be tax

>>

 

Get the numbers correct and you'll be good. I had no idea you folks get lump sum pension distributions tax free. That is astonishing and good news for you all. And, of course, if you get it lump sum (provided your net present value is well computed) then the future of the company has no significance.

 

Remember, odds are private insurance will not be covering people past 65 in the future. Plan to go home then.

[Emil 0]

I got early retirement because I was working at an Air Force base that was on the base closure list. I could have moved with my program to Ohio but choose the early retirement package as I was close to regular retirement age, didn't want to move to Ohio and they made it very attractive. If I had know about LOS prior I would have gone earlier as the closing process took 5 years and I was one of the last to retire.

[Eneukman 1]

My job was outsourced to a firm of accountants. So I resigned from them and approached my ex-employer about taking my pension early (10 years early). They approved my request.

 

I had done some computations previously which would have resulted in my drawing on capital until I reached the age of 60, but subsequent computations suggested that that option would only be beneficial if I lived to at least 75 - maybe older.

 

As it happens, my total gross income for the current tax year is likely to be only £2,000 less than the last tax year I worked full time. My income in the next tax year will be lower as I had to sell an investment to pay for my new condo, but my expenses will reduce by a larger amount.

 

Alan

Edited January 31, 2008 by Eneukman

[rawdonlad 0]

The firm I worked at for nearly 20 years had a pension scheme and I had also transferred in some extra benefits, but over the last few years the place became awful to work at. After another trip to Thailand in March 2006 I decided that is enough of work so went to see my boss on my return, I already knew my days were numbered because at 55 I was twice as old as most of the others. I said to my boss if I take early retirement would they be able to offer any extra package otherwise I will have to stay on a bit longer.

 

Later that day he came back and said we will offer you voluntary redundancy and pay you a full years salary. That was great so I took the maximum of 30 thousand pounds and the rest paid into my pension scheme to avoid tax. Six months later at the end of 2006 and aged 56 I left. I took out a lump sum from my pension fund which has paid for a nice house north of Korat.

 

Best thing I ever did

[stevemcm 1]

I got early retirement at 49 yo. Government tax rules In the UK decree that you cannot have a "Pension" until you are 55 so I was paid a "continuing annual payment" which was equivalent to my pension earned at that time. A "continuing annual payment" cannot be index linked. When I was 55 it became a "Pension" at this point it was increased by each of the previous 5 years increments so that it was at the same amount as though it had been index linked, HOWEVER this increase cannot be backdated. In effect you get no increments till you are 55 then you get a 5 year jump this happens on your 55th. birthday you don't have to wait till the start of a tax year.

 

stevoh.

Edited January 31, 2008 by stevemcm

[BigDUSA 71]

I worked for the US Postal Service and one day they offered early retirement to almost all the employees. They offered six months salary to walk out the door, medical benefits for my family and a reduced pension. I took a 20% hit but I'm indexed for inflation. I walked out the door when I was 44 and that was 17 years ago.

[nidnoyham 30]

Err- why don't you make a phone call to your Personnel department and ask if you can retire ?

 

My company had a Final Salary pension scheme that required your age and service to add up to 80, with a minimum age of 55. This was reduced to a combined figure of 70, when they were keen for long term employees on maximum wages to leave.

 

How do you know your pension figures, if you don't know if you can retire ? Do you get an annual forcast from the company ?

 

Basically, retirement is made easy or hard, depending on what suits the Company.

 

Mine was in the throws of going broke, so many of us jumped ship with our pensions in tact.

 

The tax free lump sum payment today, is double the one we received in 2003.

 

We just couldn't take the chance back then of losing what we had.

 

Owens health advise is a priority issue. Remember, you will be getting older and frailer in a foreign land. a land that will require you to pay for health treatment.

 

Two of my workmates that also retired in 2003 had previous health issues. Cancer and heart problems. The one with Cancer lives in the UK and in December, had a 5 hours of surgery to remove a kidney and a growth on his bladder. He is having treatment now to check for any further cancer. All free on the NHS. The one who lived in LOS, had insufficient funds to get treatment for his heart. I went to his funeral this month. They were both the same age - mid 50's.

 

I forgot to add, they are both married to Thais. The one still here is waiting for his wife to retire. They have land in LOS to build a house, but may be thinking of 6 months in each country in the future.

Edited January 31, 2008 by nidnoyham

[capdagde 1,954]

This is an excellent informative thread - thanks guys for the insights...

 

Andy Cap

[Eneukman 1]

I got early retirement at 49 yo. Government tax rules In the UK decree that you cannot have a "Pension" until you are 55 so I was paid a "continuing annual payment" which was equivalent to my pension earned at that time. A "continuing annual payment" cannot be index linked. When I was 55 it became a "Pension" at this point it was increased by each of the previous 5 years increments so that it was at the same amount as though it had been index linked, HOWEVER this increase cannot be backdated. In effect you get no increments till you are 55 then you get a 5 year jump this happens on your 55th. birthday you don't have to wait till the start of a tax year.

 

stevoh.

 

Not so, Steve.

 

I got my works pension at age 50 and it is index-linked. The rule may be that you cannot take your pension unless you are within 10 years of the normal retirement age for the company you work for. In the case of the Bank, normal retirement age was 60.

 

Back in the year 2000, the Bank offered anyone over the age of 50, a voluntary redundancy/early retirement package along the lines rawdonlad mentioned. A large number of people volunteered as it was a bloody good package. If I had been old enough, I would have jumped at the chance.

 

Alan

[CheshireTom 1,377]

Not so, Steve.

 

I got my works pension at age 50 and it is index-linked. The rule may be that you cannot take your pension unless you are within 10 years of the normal retirement age for the company you work for. In the case of the Bank, normal retirement age was 60.

 

Back in the year 2000, the Bank offered anyone over the age of 50, a voluntary redundancy/early retirement package along the lines rawdonlad mentioned. A large number of people volunteered as it was a bloody good package. If I had been old enough, I would have jumped at the chance.

 

Alan

 

Alan,

 

Perhaps he is referring to Government employee pension schemes.

[Dr Mick 111]

Err- why don't you make a phone call to your Personnel department and ask if you can retire ?

 

I HAVE PUT IN FOR RETIREMENT ,THE PROCEDUE IS MY BOSS AND HIS BOSS MUST

AGREE TO LET ME GO THEN ITS UP TO THE DIRECTOR OF HR TO AGREE DEPENDING ON MANY THINGS.

THE ISSUE IS WHAT BENIFITS TO COMPANY LET ME GO ,UNLESS IT IS A COMPELLLING DOMESTIC ISSUE OR HEALTH GROUNDS EFFECTING MY PERFORMANCE OR UNLESS COMPANY CAN SAVE MONEY LETTING ME GO.

 

My company had a Final Salary pension scheme that required your age and service to add up to 80, with a minimum age of 55. This was reduced to a combined figure of 70, when they were keen for long term employees on maximum wages to leave.

 

How do you know your pension figures, if you don't know if you can retire ? Do you get an annual forcast from the company ?

 

WE GET ANNUAL FORCAST ALSO I HAVE BEEN COUNSELLED WITH ACTAUL FIQURES IF I WAS TO LEAVE AT 55

 

Basically, retirement is made easy or hard, depending on what suits the Company.

 

Mine was in the throws of going broke, so many of us jumped ship with our pensions in tact.

 

The tax free lump sum payment today, is double the one we received in 2003.

 

We just couldn't take the chance back then of losing what we had.

 

Owens health advise is a priority issue. Remember, you will be getting older and frailer in a foreign land. a land that will require you to pay for health treatment.

 

Two of my workmates that also retired in 2003 had previous health issues. Cancer and heart problems. The one with Cancer lives in the UK and in December, had a 5 hours of surgery to remove a kidney and a growth on his bladder. He is having treatment now to check for any further cancer. All free on the NHS. The one who lived in LOS, had insufficient funds to get treatment for his heart. I went to his funeral this month. They were both the same age - mid 50's.

 

I forgot to add, they are both married to Thais. The one still here is waiting for his wife to retire. They have land in LOS to build a house, but may be thinking of 6 months in each country in the future.

 

 

Thanks for your answers but does not apply to me in my situation

 

Well I hope I get answer in next 4 weeks ,will keep you all updated.

Edited January 31, 2008 by Dr Mick

[nidnoyham 30]

For the lucky few who have been granted early retirement ,can I ask how this was obtained ?

 

 

Note my pension can be paid to me at 55 only if my company give me permission for early

retirement

 

 

If you're looking for a way to force the issue of early retirement and get an answer that tells you how to do it. That will cause a stampede. Put up the rent in Pattaya too.

[stevemcm 1]

As Cheshire Tom says I was in the United Kingdom Atomic Energy Scheme which is effectively a Government scheme although not the same as other ones because it is a contributory scheme unlike the Civil Service one.

 

stevoh.

[Dr Mick 111]

If you're looking for a way to force the issue of early retirement and get an answer that tells you how to do it. That will cause a stampede. Put up the rent in Pattaya too.

 

I promise i will keep it secret

[Owen` 2]

For any younger guys reading this and looking ahead with glee, odds are high none of these options will be around for you in 10 years or more. Pensions are going away. For private sector and government sector. They are too expensive to fund when the demographics have more elderly than young.

[nidnoyham 30]

I agree with Owen'

 

Early retirement is a privilege, not a right. It is at the employers discretion.

 

In the UK there has been talk of raising the normal retirement age to 68, to make life fair between the sex's. Women of my wifes age will now retire at 65 instead of 60, to be on par with men.

 

My company encouraged early retirement for the top earners. New employees are so badly paid now, many can't afford to contribute 6 or 7% of their wages to a company pension scheme. This means a drop in contributions, plus the present slide in equities , have put a strain on funds.

 

I watched both my parent work up to and beyond retirement, mum died two weeks after giving up work at 76.

They knew nothing other than working for a living. I promised myself I would not follow suit. If you can get early retirement and survive - take it.

[BongoBill9999 0]

In the UK there has been talk of raising the normal retirement age to 68, to make life fair between the sex's. Women of my wifes age will now retire at 65 instead of 60, to be on par with men.

 

It's already in law, Stan. This from the UK Gov Pension Website

 

"The state pension age for both men and women is to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade. The first increase, from 65 to 66, will be phased in between April 2024 and April 2026; the second, from 66 to 67, will be phased in between April 2034 and April 2036; and the third, from 67 to 68, between April 2044 and April 2046."

 

I will be aged 99 when the changeover completes (pushing up daisies morelike). Don't think it will affect you either!

 

Bill

[Dr Mick 111]

I agree with Owen'

 

Early retirement is a privilege, not a right. It is at the employers discretion.

 

My company encouraged early retirement for the top earners. .

 

If you can get early retirement and survive - take it.

 

You are right it is at the employers discretion

 

Also I wonder why keep a employee when he will not be that motivated if refused

 

One thing in my favour is that im on top of my management grade now,due to large

banding in pay scale could promote a more motivated younger guy and pay 12k a year less

in salary .Also good training to new guy as I would be motivated knowing I was working my last 6 months

before my retirement.

 

Well fingers crossed as I want retirement now whilst i can enjoy life

[wacmedia 277]

If you can get early retirement and survive - take it.

 

Hi,

 

Well said it is worth the gamble. Remember Cowboy R.I.P.

[Dr Mick 111]

Well its been 4 weeks since I sent my letter in ,so I had to ask is there any progress

 

Was told gone up to next level for discussion

 

The wheels turn in big companies do seem to run so slow

[BigDUSA 71]

Well its been 4 weeks since I sent my letter in ,so I had to ask is there any progress

 

Was told gone up to next level for discussion

 

The wheels turn in big companies do seem to run so slow

 

I can imagine if they wanted to fire you, you'd be long gone.

[Kingsknight 0]

my early retirement was easy, agent orange