I understand that folks near retirement are safe, but what about those of us under 60? Loosing a quarter of my pension by being forced to retire before my kids are out of college has me worried.
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I am just happy to get to 55. I am too close to leave but not 52 yet...
The gamble you are taking on interest rates by not retiring is pretty large. The “early retirement” penalty will look like peanuts if we go back to Carter era interest rates. Also, remember the reason the penalty exists is because the lump sum calculation is started from your benefit commencement date (I.e. a 56 year old would collect more dollars than a 60 year old since the end point is the same, if the penalty didn’t exist).
With interest rates rising and no raises run the numbers. You’re likely working for free the next couple of years if you don’t retire.
If you are taking lump sum, you lose less than 25%.
Also, you might check your LS amount for this quarter vs next.
If I was 55, I would be jumping now.
Maybe you should have planned better. That's what I hear the other "boomers," and those that smile like a donut when as manager walks in, have told us millennials. Don't act entitled.
Does OP already have his 15 years If so, he’s RE and an easy target. Care to enlighten us OP
@oip. What would make you think NRE protection is not available to OP ? Was it ever determined how much service time he had ? At 56, if he had 12 years or more, wouldn’t he be considered NRE or am I missing something ?
Depends on how much you make and how much value you bring for your salary. EM lost billions last year and they need to make it back. Do some market research. Are there jobs out there willing to pay you the salary you make now? If the answer is no then you are overpaid and they will cut you. Simple math, simple decision.
How much does your boss and their peers like you? With NRE protection gone, this is unfortunately the single biggest factor probably. If you’ve rustled too many leaves lately, that doesn’t bode well.
Their goal is to reduce headcount as cheaply as possible. That’s why the recent layoffs were voluntary only for retirement eligible employees who received a small 4 month payout vs the typical large layoff severance payment based on long service.
Retirement eligible employees are a prime target for NSI headcount reductions. Gets rid of high cost older workers for very little cost. Many retirement eligible employees will get whacked again this year via the performance rating process.
Hopefully, you will be one of the lucky ones to at least survive another year.
In situations where an employee is within 3 years of retirement eligibility ( at least 52 with 12 years service) they are in fact NRE. I suspect that is why @uxa asked about years of service
It is if you’re also 55
3 years to the 15 year service date is not NRE
From my understanding, you still choose when you take your pension. You can leave here at age 50 and take the pension at 65 and still receive 100%. Of course the calculation will be lower because your years of service will decrease, which is a big factor, and you will most likely be making less money than you would if you worked 9 more years.
I disagree with @ptj. You didn’t mention whether or not you are within 3 years of fulfilling the 15 year service requirement, which would make you NRE. That group enjoys a measure of protection due to Exxon’s fear of lawsuits.
After 55, there are no guarantees.