I see posts from people with 30+ years of service who say they aren’t financially ready to retire. Anyone care to share how some of the highest paid people in the world don’t have enough to retire yet? Even with the rumoured layoff packages of 2-2-1 in the US?
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I think that means 2 years added to age-2 years added to service-1 week/year of service severance. So someone who’s 53 will be bridged to 55 and get their full pension.
@1drb - I started at the equivalent of $17, 500 in 1989.
@1eog and @1tne - this was asked (and answered) in another thread. Basically years added to age, years added to years of service, weeks salary per year of service (YEE). Just a mechanism to get a small fraction of the company employee population to retire before they're eligible (55 and 15 YEE). Personally, I don't think it's going to happen (at least in the US).
I started at $50k in 2015
What’s 2-2-1?
When you have new hires making more than 90% of the US population, you are some of the highest paid people in the world.
Why retire when you can just keep milking the cow? #TooMichMoneyAintEnoughMoney
Would you please provide details on what you mean by 2-2-1 package?
Engineering grad starting salaries at the campus were approx. $105k. Back in 2017.
As a uk based employee ..engineer with 30yrs experience, I wasn't making much more. Only my expat assignment leveled things up to some extent.
I knew a lot of people at Exxon that started at less than $90k and there were other companies paying more for the same positions so no, we were not the highest paid people in the world by far.
Highest paid people in the world? That was sarcasm right?
CL28 - 34 years. Retiring in a couple weeks.
Admit that once I went to 'Advisor' mode 5 years ago, it's been Retired in Place.
Now I'm ready to go and not in any trouble.
If I had been thinking about other than myself and family - still the same.
I milked the company for everything it offered.
I s—ed those crusty old dugs dry.
401k loans over the years to make ends meet due to spouse’s child support payments... trying to catch up before the axe drops but it’s not looking g good....
Starting offers I’ve seen in the last few years for MPT have been in the 80-90k range.
And have seen a ton of mediocre people with 25+ years making 175k+. Have friends who have direct reports who make more than them and they don’t understand why because these people barely do any work.
Wow... divorce is a choice... ok let’s stay with an adulterous spouse... yeah divorce was real tough choice.... especially for those that never made the $100k a year salary... very grateful for what I have, but lost a lot!!!
Wish I started at $90k a year... just proves the ignorant and arrogant folks running this place...
Fyi, not everyone at EM makes 6 figures, even after 30 years. You suits aren't the only ones who matter. Jeez.
I wanted/needed:
new vehicle every 3 years
lake house
vacations to fancy places
starbucks every day
going out for dinner 2-3 times a week
nice clothes
it costs money...
Starting salary is ~$90k. Average salary is ~$175k, which is considerably more than 90% of the US population.
Divorce is a choice. A personal choice. Eith consequences. And 50% of a lot is still a lot. Compared to the rest of the world a modestly paid xom employee with the strong benefits we have had, is very well off.
Be thankful and greatful for what you do have
A few years ago when I was at the Campus, I overheard two level 29+ employees (both in their late 50's) complain that they only had $4m in their 401 k and that they "needed" a few more years. Of course the 30 acre ranches and holiday homes in Florida and New Mexico, do need some financing I guess. 1st world problems for sure....a lot of outrageously over paid folks in the us...no wonder something had to give.
Wow, some think every employee makes tons of money! Did you know that a person can loose up to 50% of their pension and 401k to a divorce? So before you pop off that BS and condensing talk, stop and think before you type!!!!
Never place all eggs in one basket, that's why I own 0 XOM stock.
I bet they have what they need, but can’t fathom to miss out on some more. Milking the cow until the last drop. Greed knows no bound.
Retired in place people have told me as much. If mgmt offer “incentives” will ran, if no packages they will hold on for 3-5 more years.
They are unfireable and they don’t mind to drain the company they claim to believe in.
No matter what we all say and what we all spent money on we all should be doing well compared to the rest of the world. Maybe you can cite ten examples of not being financially ready to retire but we would still have far more than most.
A bird in the hand is better than two in the bush. Take your bird, figure out if its a sparrow or a goose and be happy you have dinner. Retire, be thankful for what you have, make due with that. Or stress yourself out, stay, work more years. Just don’t say you don’t have “enough” yet and complain you don’t want to have to retire when you are by the global scale of things wealthy.
Some folks have to take care of elderly parents or have big medical conditions which delays their retirement.
But most folks are busy with mortgages past the 28% rule, lavish vacations, and the fully loaded F350/Benz.
For those in the US with serious medical conditions, my heart goes out to you.
And maybe it’s time for the US to consider universal healthcare like other developed countries so people aren’t handcuffed to jobs they hate or stressed over layoffs?
Do people who are terminated prior to retirement not allowed access to the commuted value of their pensions?
How about those with 20+ years of service, not retirement eligible, not management or executive, and have family with health conditions? Or they have a severely autistic child? No access to lump sum pension. No health coverage anymore.
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
It’s a good lesson to some of the younger folks to live below their means and have the opportunity to retire early. Doesn’t take too long to hit $2m in investments if you save a good portion of your income. Layoffs sure are less stressful when you’ve got a few years worth of savings available. #firemovement
How can someone retirement eligible with 30+ years' service NOT be able to afford to retire ? You can say this is all my own stupid fault and you'd be right, but here's one explanation ....
For me it was mostly college tuition for my kids. No company assistance and ineligibility to participate in a 539(K) for the first few years in the US, so we had to tie ourselves up in student and parent plus loans (we still owe a total of about $150K).
Additionally, my wages weren't fantastic and the Expat bonus was only about 10% on top of my UK salary. Also, an accelerated timeframe for relocation meant that we rushed into buying into a house (that's been a money pit) when we moved to the US, because I believed in a future with this company.
Now I can't afford to retire because: (i) 20% discount on my 1/2 US pension (5% per year until 60); (ii) 27% discount on my 1/2 UK pension (3% per year until 65); (iii) I will have to go to the Government Marketplace for Health Insurance, as I cannot enroll in the company scheme for retirees until my BCD; (iv) my misplaced faith in the future of the company (and the 7% match) means almost all of my 401(K) is in company stock, which I can't even afford to cash in because of taxes and the drop in the share price.
Nice cars, nice house and a mound of debt to go with all the things. On top of that, all their retirement savings in 401k 100% XOM anchoring to it's value 10 years ago. It's amazing how many otherwise intelligent people this describes working here.
A lot of people I know live in fancy McMansions in high end neighborhoods, they send their kids to expensive private schools and universities, buy expensive cars at retail, and the spend alot of money on golf, European vacations, and hunting leases.
I saw my life’s savings being chopped in half in the last 7 months. You might ask, how could I invest all my savings in the company I work for. The answer is, I believe in this company. And I still do. I am still buying shares to get my average purchase price down.
Retirement will obviously be delayed now.
If you walk through the parking garages at EMHC you will find the answers you seek. 80% of EM employees seem to forget that NPV isn’t just a business concept.
OP: What is your financial retirement target? 2M? 5M? More?