So many people retiring early! Are people leaving voluntarily or are they being forced out?
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Yes they were forced out. I know several that were nsied and told they could not compete with the young ones. The oldies wanted to stay as they told me there was no way they could leave and make the salary anywhere else. Some of these were making 200k to 300k per year. So would you want to leave making that much money for basically BS work.
@OP These boomers will literally die at their desks unless someone pulls them off and drags them out the door.
Most of those who were “forced out” essentially retired in place (RIP), and stopped learning or keeping up with anything new or relevant. This was while drawing salaries ranging from $190k to $350k annually plus benefits. Most if not all are small-m millionaires, assuming that they have basic financial literacy.
I don’t feel bad for these people. Neither should anyone else.
Remember only the bottom ranked PIP folks get a severance. Everyone else leaves voluntarily with no severance. You will need to wait your turn. Company comes out ahead by giving you below inflation pay raises as you approach RE, so your final 3 year average is low when you become retirement eligible. The company is reinvesting your pension at much higher than the discount rate specified in pension formula, so keeping the 3 year average low as people approach RE is a solid strategy to minimize pension costs and to encourage early retirement attrition in HC 10 countries (so work can be shifted to low cost countries). PIP is all about cutting headcount and costs.
On paper, they appear to be voluntary. The reality is that management has created an environment where everyone in HC10 countries should be afraid that someday they will drop into the bottom 10% for no reason other than the fact that they are higher cost salaries compared to the lower cost countries.
For example, the cost of an engineer in India is 1/8th the cost of an engineer in Houston. I learned along time ago in Exxon, now ExxonMobil that you just have to follow the money trail to see what your career will be at as you approach 55 years old.
Interest rates are low now
I know 2 RE employees who were ranked NSI. Both were interested in the PIP but were told it was going to be a very high bar to pass. Both took the PIL instead.
People close to retirement tell their manager they volunteer to be NSI. Get to go out the door with an extra three months of pay. Sure, it makes an absolute lie or our assessment system being about making people better, but it’s an open secret.
Take the PIL and get 3 months pay.
Company strategy of making us boomers feel miserable is working.
My guess and it is a guess is that they realized the stress was ki-ling them and they were better off retiring even if it meant a more frugal retirement.
Forced out voluntarily. Sad but true.
Incentives like what? I thought we didn’t do packages?
Forced out with incentives.