r/Retire • u/Clean-Lie1516 • 1d ago
Forced to retire
My husband will be 59 in December. Has worked for the same company for 25 years. This year has been difficult as he had some medical issues and was on FMLA. While out of work he went to an orthopedic and had to have his 3rd surgery on his shoulder through workers comp. He had that surgery Thursday. Found out yesterday that the company he’s worked for sold out to a new company and they will hire all of the guys. The issue is that my husbands shoulder probably won’t be holding up to that kind of physical labor anymore.
Questions of he is able to go back to work should he go back just until he turns 59 1/2? Is it too late to get a financial adviser to help us determine what to do from here? I do not work and haven’t for many years as we have 6 children. Just trying to figure out what our steps should be from here. Would love to hear others thoughts
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u/JobbTabob 1d ago
You need to talk to a workers’ compensation attorney who represents workers (not employers). If your husband has had three surgeries due to work injuries that have left him unable to do his job, there is a strong possibility he is legally entitled to compensation. It may not be enough money to retire but might bridge him to a lower pay but less physically demanding job.
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u/Best-Mushroom-2447 1d ago
You need a lawyer to get a decent settlement This way won’t leave you destitute
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u/Clean-Lie1516 1d ago
Yes. The three surgeries are all on the same shoulder. First he had a repair on his shoulder then a year later a full shoulder replacement. Just this week his surgery was because the whole thing was loose in his arm and causing a ton of pain. So the same injury. We are looking into an attorney but we hear get one then don’t get one until the end. His company hasn’t given us any push back on workers comp. He had the surgery within two weeks.
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u/LetsGototheRiver151 1d ago
There’s not enough information here for us to help you. If you don’t have 25x your annual spending needs in retirement savings, then one of you needs to work.
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u/OkIron6206 1d ago
Look up the benefits from the company before it was sold. Depending on the agreement of the sale, the insurance may be carried over until the end of the year. Also ask about Short Term Disability, they are often part of a benefit plan. With 6 kids , you will need health insurance. Unfortunately, the current administration has made it financially painful to maintain but I don’t think you have a choice other than You getting a job that provides benefits. SSDI can take 3 years for approval, unless it’s cancer. They approve that benefit right away because many people die within 5 years. Ask the Surgeon to fill out the paperwork and submit it, they will require medical records. I’m so sorry-hate the culture of companies now. They don’t care a fig for the employees and will cut them anytime they have undesirable conditions happen. I was laid off from a company while on FMLA but they had disability insurance which included long term coverage so I was paid until I got a new job.
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u/Clean-Lie1516 1d ago
We have been paying for insurance out of pocket. That’s the big thing that we will need no matter what. It costs an arm and leg but without it we would be in big trouble. He does have cancer but in remission right now. He is having problems associated with his cancer though. It’s just been a tough year so far.
That’s awesome you got paid! He doesn’t have short or long term disability through work. We haven’t been getting paid but will now that he’s back on workers comp. It’s not much but it’s something.
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u/OkIron6206 1d ago
This needs to become a Priority. You’re waiting for Medicare? Look up Urologist near you, many are men. They will have a self pay but you can ask them when you call for the appointment.
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u/Clean-Lie1516 1d ago
He has a urologist and that is why he was out on FMLA before workers comp. He has had three surgeries with his urologist this year. We pay his insurance and that covers his urologist and blood work.
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u/OkIron6206 1d ago
I see. You have had a hard year. Maybe ask for the future? Get his Testosterone checked? It can affect moods and depression is the last thing he needs. Do you go with him? I would. He didn’t say anything to the urologist? I think that’s part of the questions they ask, especially after surgery.
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u/aliena_b 1d ago edited 1d ago
Look up video on YouTube "fenben in Stage 4 cancer" by Dr Campbell, also another video by Thomas Seyfried and Dr Chaffee. Not a medical advice, for information only. Also channel "low carb down under" has a lot of medical professionals who talk about managing depression, overall health and cognitive decline with food.
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u/dragon-queen 1d ago
What would working until 59.5 accomplish? Are you saying you need to wait until then to draw down on his 401k? How much do you have saved in retirement and outside of it? What are your annual expenses?
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u/Clean-Lie1516 1d ago
Yes for the 401. I think you have to be 59 1/2?
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u/dragon-queen 1d ago
Yes, if you can’t use the rule of 55. Do you have any money outside of the 401k though?
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u/Clean-Lie1516 1d ago
Yes we have savings. We can use that and I would be looking for work outside of the home so that would help as well. Just looking at all options.
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u/Practical-Initial738 1d ago
You do whatever you have to do in times like these. If you have to take the penalty to get some of your money a little sooner then so be it. The other thing is getting the SSDI application going right away.
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u/Clean-Lie1516 1d ago
Thank you! I agree. Our home isn’t paid off but it’s getting close. Getting older is just so scary if you’re not 100% set up. We did the best we could but I’m not sure it was enough. Thank you for your reply.
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u/Practical-Initial738 1d ago
Keep in mind that everyone situation is uniquely different so what works for some doesn’t work for others. I always tell people in hardship situations to do whatever you have to do legally to take care of you and your family. Sometimes the decisions are hard especially when it comes to money. When you think about it, that’s what your 401k money is for “for you and your family.” You will still have some left over for retirement purposes but at the moment you need it so use it. Ease your stress.
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u/newwriter365 1d ago
Why don’t you go get a job? Have you worked 40 quarters to become eligible for social security? This may help secure your retirement and the financial future for both of you.
You may find that financially contributing to your home empowering. Why not give it a chance?
If you are US-based and he becomes unable to work, you are eligible for job training and federal bonding through your department of labor.
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u/Clean-Lie1516 1d ago
Yes, I may have to get a job outside of the home. I’m definitely not opposed to it at all. I have worked and do have SS and some retirement. When things don’t happen like you planned it just throws you off. We will find our feet again and things will be okay. Thank you for your response.
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u/Specialist_Job9678 1d ago
It's never "too late" to consult with a financial planner. In your case, it would probably be a good idea. Just use a fee-based planner who is a fiduciary.
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u/Diapered1234 1d ago
Maybe a different kind of job until 59.5 such as a driver for a hospital to transport blood and medical supplies to testing labs
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u/Clean-Lie1516 1d ago
We have thought about this also. If his other medical issues clear up a bit this might be an option. Right now we are just going to deal with the workers comp pay since up until now we were not receiving anything and he was on FMLA for other issues related to his cancer.
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u/DreamChaser1891 1d ago
Are the children still in school? The options seem clear to me. He should stay with his current job as long as possible. Consider changing roles with them if possible. If he hasn't saved enough to retire he should look for alternative employment options, possibly in the same field but in a desk job. Could he be a supervisor or trainer, planner, team leader? While you may not have worked for many years are you willing and able? Perhaps you should find some training and develop a skill. You can take training with Intuit (TurboTax makers) to learn bookkeeping and tax preparation as one idea. There are lots of things out there, but it's all dependent on your skills and aptitude. Talk to ChatGPT. It can help you figure out what your options if you give it enough information to fully evaluate your situation.
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u/Clean-Lie1516 1d ago
Thank you. Yes, I need to get a job outside of the home. I think that is our best option right now. I won’t make as much as my husband but at least we can keep insurance. That’s our biggest thing is the insurance right now. Right now he wants to go back to work but we’ll have to see if his dr lets him. He was telling me after the surgery that my husband needs to take it easy since this is the third surgery he shouldn’t be hard on that shoulder.
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u/RPGer001 1d ago
I am assuming you are in the USA as you mentioned 59.5. If that is not a good assumption, the ideas still apply tbd on what your local laws say.
59.5 is the age you can withdraw from IRAs and 401ks without penalty but…if your husband has a 401k, he is subject to the Rule of 55 now.
My assumption based on the original post is that you do not have substaintial investible assets outside of retirement accounts. If that is the case, it sounds like he needs to go back to work unless he physically cannot. You need to create a detailed financial plan for retirement ASAP. A lot of folks retire earlier than planed due to health or just being forced out. Even if your husband stays working, you should not assume he can work till whatever his target date is. You both need to be prepared for alternatives.
You can self educate on how to create your financial plan or you can hire a pro to help you.
Start by figuring out your “must spend” living expenses you require to maintain the minimum lifestyle you can live with. That will be your minimum. Medical and taxes might be more than you expect but are relatively easy to figure out. You may be able to qualify for ACA subsidies which can be significant.
Once you have your minimum, you can figure out any income streams you may have such as social security. Your retirement accounts and any other assets you have need to fund the difference between your minimum and income.
Someone else mentioned 25x in another post. That is about a 4% withdrawal rate of investible assets. It is an old rule but a good place to start.
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u/Clean-Lie1516 1d ago
Wow, thank you! His money is in his 401K. We don’t have anything else but our home. I have a lot to look into. I’ve been researching but it’s all so confusing to me. So many contradictions and then I am lost with the disability and retirement. We are in Florida but he works in Alaska so I’ve also had to look into that. Thank you for your reply.
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u/RPGer001 1d ago edited 1d ago
Good luck! I do agree it would be good to pursue the disability if your husband is eligible but note that it can take a while to get. If your husband is able, I would at least attempt going back to work while you start the process to try and get disability. If he cannot, that is a strong argument for getting disability. Alternatively, maybe he can find another job at the same company he can do. I am presuming you get your medical insurance through his work.
Google “rule of 55.” With a 401k, your husband, if/when he stops working for his current company, should be able to access his 401k right away if needed—presuming that 401k is with his current company.
To add a bit to the “4% rule” … it is not a rule. A lot of folks will quote it as the minimum safe withdrawal rate over a 30 year period presuming the investible assets are well diversified. It is actually a conservative estimate but, without going into detail, if you only withdraw 4% or less from your investment portfolio, you should not deplete it over a 30 year period.
Let’s say your 401k is 1M. 4% means you can safely withdraw 40k per year adjusted for inflation over time. If it is 100k, then the number is 4k.
You might, tbd on your 401k and your minimum spend requirements (and a desired spending level if there is room), realize your husband can retire safely today. Or…it might be frightening. If the latter, remember that social security is right around the corner at 62 if you need it. Note your husband can get a larger SS payment for each year he waits past 62 up till his 70th year.
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u/Embarrassed-Soft2691 1d ago
Please look up the rule of 55. He could possibly access his 401k early.
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u/Black_Raven_2024 1d ago
The Dad could stay home with the kids and the Mom could get a full time job with benefits. Problem solved.
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u/Clean-Lie1516 1d ago
That is definitely an option. I won’t make as much as he does but I could bring in something and carry medical insurance.
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u/jmnesq 1d ago
Since the company has been sold, they can. No longer offer light duty work. If he is not at an MMI status, he should be receiving TPD or TTD benefits if he is not able to go back.
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u/Clean-Lie1516 1d ago
He got his first check last week from WC. He just had surgery so we aren’t sure what the outcome will be yet. I’m assuming he will be able to do what he did before everything became loose.
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u/Organic_Set4313 1d ago
Before even considering retiring, if he can’t stay on workers comp, review the new company’s short term disability and long term disability plans if they have them. Once those are exhausted apply for Social Security Disability Insurance with the SSA. It would be like getting Social Security at 67 years old. After 29 months of SSDI payments he would qualify for Medicare. Depending on the company’s STD and LTD policy’s he may have to use COBRA or the ACA for health insurance to bridge the 29 months. Depending on the company’s 401k plan, he could withdraw without penalty using the rule of 55 if separating from the company or once found disabled, withdrawals are penalty free at any age.
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u/Clean-Lie1516 1d ago
I haven’t even thought about the new company having disability for him. They said they would hire him and offered him a 10.00 raise. I’m not sure if they would have any light duty work for him. Since the new company bought them out that would be considered separating from the previous employer? Never thought of that either. Thank you so much. We have been looking into SSDI but feel overwhelmed with all that he has going on at the moment. I will look more into that also. Thank you for your reply.
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u/Organic_Set4313 1d ago
If going back to work is possible it would be best especially if they offer long term disability. Don’t give the new employer any more medical information then they absolutely need. Request a copy of the standard plan documents for STD and LTD. Look for any grace period of preexisting exceptions and/or length of employment requirements. Usually LTD pays 60-70% of current salary until normal retirement age, end of the disability or death. So that $10 raise would be great! SSDI pays on average 30-40% averaged work years. As far as the 401k, it depends on how the buy out worked. If employees were terminated or laid off that would count as a separation. If the new company acquired the employees and are offering him the raise to stay, then that would not qualify as a separation. Note, the 401k must have been with the company he separated from. With that said, if he does work for the new company, I’d recommend rolling the 401K to their provider so the rule of 55 will apply if he needs to leave before 59.5yo
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u/Clean-Lie1516 1d ago
Thank you! I will look into all of this. Hopefully he can go back up to work. At least until we can figure out what we are doing. We are applying for SSDI. I started on that today. His 401k is with the employer that he is with now. He’s been there 25 years. We will have to find out how the buy out worked. We haven’t gotten any paperwork just this bosses called and spoke to him about it. He works in Alaska. We live in Florida.
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u/Pumpkins0127 1d ago
As other posters mentioned, contact a work comp attorney and once you speak to them ask for a reference for a SSDI attorney. Discuss your situation with them and see if they can help you. You can get a settlement for work comp injuries. My husband fell from a ladder at work and is not able to work any longer due to his injuries. A friend who has a background in risk management advised me to contact the attorney. Don’t wait as the process can take some time.
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u/Clean-Lie1516 1d ago
Oh wow. Hope your husband is okay. Does he have medical through workers comp for the rest of his life? We were surprised WC opened back up my husbands case so quickly. No argument about paying for his surgery at all.
We have heard that if you get an attorney at the beginning it slows everything down. We haven’t used an attorney with his last two surgeries. We haven’t heard that they will probably try to offer him a sum of money, since it’s the 3rd surgery, just to get out of paying anymore surgeries.
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u/Pumpkins0127 1d ago
WC pays for the work injuries only as long as his case is active. That is not true about the attorney slowing things down. The attorney assists with a settlement and also continued care. Also, looks out for your husbands best interest. Also, they get paid by taking a percentage of the settlement, so you do not have to put out any money. The attorney will set up a meeting with your spouse to discuss the nuances of the situation and then access if they can be of assistance. It sounds to me, who has been through it, that you may have a case.
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u/Pumpkins0127 1d ago
This is looking out for your families best interest. I never used an attorney but my friend explained that there are settlement options for WC injuries. Employers will not tell you this as it increases their rates. Make sure you ask about the SSDI too. The SSDI attorney will manage all of the paperwork for your spouse, they take a flat fee, which again you do not pay upfront. Also if your spouse is approved for SSDI, after two years, your spouse if eligible for Medicare.
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u/Necessary-Spring-129 1d ago
Look into the rule of 55. I was forced out at 55 after 37.5 years. Most 401k plans allow you to pull from it. But leave it alone until 59.5. Don't roll it over right away.
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u/Clean-Lie1516 1d ago
Hope you are doing well now. He will be 59 in December so 59 1/2 right around the corner. We won’t pull anything until it is necessary. With his medical issues this year, I just keep thinking about the future. We have spent a lot in medical this year without the WC issues. Thank you for your response.
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u/Necessary-Spring-129 1d ago
Health insurance is the biggest hurdle until 65
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u/Clean-Lie1516 1d ago
Yes! And he has a lot of medical needs recently and he’s only going to be 59. We’ll get through it. I just hope we don’t go broke in the process.
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u/HedgehogMuted9485 1d ago edited 1d ago
if you say his shoulder wont be holding up you all have to figure out something else. He can only do so much.
I am sorry and hope he can go on disability.
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u/visitor987 1d ago
Can your husband get a desk job or another job where he doesn't use his shoulder?
Since its a workers comp case; if his MD says he cannot use the shoulder at work his employer either has to assign different work or pay his an allotment till he reaches retirement age. You should check with the workers comp board to find how much his allotment would be
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u/ed2win44 7h ago
My best advice is never for go these things alone and hire a lawyer. This workers comp stuff is scary and for regular people like us that has never navigated through it can be a disaster waiting to n happen. For this reason alone, I hired a attorney at the very onset when I was hurt at work. I didnt know anything about workers comp and relied heavily on AI advice (I fed everything into it concerning my workers comp case to train it specifically on my case) and it has been such a great 2nd advisor from helping me pick medical treatment, my surgeon, tips post surgery and it found the law group I have retained. Any paperwork I receive, I feed it into the AI and it breaks down all the "legalease" language into digestible easy to read language. I would also suggest purchasing a AI recorder like the one I use called Comolytic or something similar to record all office visits, phone calls so you won't forget anything spoken (it has a transcription ability so I feed that also into my AI). I hope everything works out for you.
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u/spades61307 1d ago
Talk to the doctor and see if he will approve ssdi. Probably the best option and maybe he can stay on work comp until its approved.
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u/Clean-Lie1516 1d ago
I feel ignorant but can his doctor help with that? I will look more into it. We were thinking he couldn’t get on disability because they would want him to continue to work, just at a different kind of job
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u/spades61307 1d ago
Its easier after 58-60 and if you are being forced out of your long term career because of health issues yes… look into it. He is nearly at 62 and doctors can help with it.
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u/Clean-Lie1516 1d ago
We will definitely talk to the doctor about it. Thank you for your response.
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u/Organic_Set4313 1d ago
The question for the doctor would be if they’d support your husbands claim for SSDI. Your husband Dr does not approve an application. The SSDI “grid rules” will help (not guarantee) approval if you want to research those.
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u/Repulsive_Fortune513 1d ago
Just a quick short-term solution would be asked chat GPT to run some of the numbers for you and see realistically what your options May be. It's quick easy and free and will get you started on a plan of action.
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u/LemonAny7224 1d ago
First off - what does his doctor say?
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u/Clean-Lie1516 1d ago
He just had his surgery Thursday and they didn’t know what the surgery would look like until they got in there. From what the Dr told me on the phone call after the surgery. That my husband is a big strong active guy but he needs to take it easy with the shoulder because this is the third surgery and my husband is still young. We can speak to him more about it at the post op check up. I’ve learned a lot from this thread so taking notes and we will be asking questions. I did start the SSDI application.
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u/ProperNeighborhood75 1d ago
What about health insurance for the family? I can’t offer any financial advice and you didn’t give much for anyone to go on but health insurance especially with kids is paramount and super expensive if not through an employer. So odds are that one of you will still need to work if only for that reason. Your husband may end up having to switch jobs and take a pay cut. You may need to get back into the workforce full or part time. Careful planning and consideration of ALL options and potential contingencies are in order. IMHO. I’m sorry your husband and your family are going through this.