So my dad works for a transportation company and has dedicated almost 30 years of his life to this company. He just turned 55 a month ago and wasn't looking to retire for a few more years because of medical insurance coverage to my mom and my 4 eligible siblings.
Last week several employees received a packet and were invited to a meeting where they were given the option to retire voluntary. The company states in documentation that they are looking to reduce their regional workforce to meet business need due to COVID19. If not enough people retire then they will look to reduce the workforce through a severance package lesser than the current Voluntary Retirement Package.
The current voluntary package contains 4 years added of base salary ~ $220k He makes about $55k per year before taxes. A $565 dollar a month as a supplement to pension until age 62, don't know what his normal pension will be. A retiree medical plan that covers eligible dependents until the retiree is medicare eligible. Cost for retiree medical plan is ~ 1k per individual per year. My dad is leaning to me for advice as he immigrated to this country and made a living for himself and his family with no education. His 401K is at about $200k.
We currently owe a mortgage of $200k and are renting 2 units in the back which pays for the mortgage $1800/month. However my dad relied on his work income to cover food, bills, and other expenses. My siblings work but don't make much money and I moved out last year to live on my own.
My dad has to make a decision in June if he wants to accept this and I don't know what to tell him. I know deep down he doesn't want to retire but at the same time I wouldn't want him to pass this offer up only to lose his job a few months later. What do you guys advice? Think is best?
Thank you all, I know many people are struggling during these difficult times.
Submitted April 21, 2020 at 09:05PM by ajrvega https://ift.tt/2zfD4bi
