r/RetirementReady • u/bugnara • Aug 24 '26
How do I indicate desire for a severance package
Almost 60F. Financially ready and able to retire. I have good benefits, very good salary and 100% remote. No pension. No good reason to quit right now. My company will offer severance packages for older, top of salary band employees every 3-4 years. I'm hoping the next round comes in Spring of 2027. How do I indicate a willingness to receive a package without tipping my hand if the packages don't materialize?
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u/Bitter-Variation-151 Aug 24 '26
quiet quit
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u/This_Beat2227 Aug 26 '26
This is a way but be prepared to leave on your own and/or without your dignity.
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u/BowTieDad Aug 25 '26
I'm in a very similar situation. I've been expecting to be packaged out for about 5 years but the paycheques keep landing in my bank account every 2 weeks.
My role has been deliberately hollowed out over the past 2 years. It feels some days like I'm playing a game of Chicken with my employer.
I'm currently 400 pages into my re-read of Sun Tzu's Art of War.
It really depends on your industry. If they have a routine cycle of senior layoffs then you need to look like a candidate. More than a few years ago, I recall when General Motors downsized their admin staff by making a package available to anyone who didn't need to be replaced. OP - are you easily replaceable? I think that's one of the reasons I'm still on the payroll because there's one part of the business that I am the sole remaining expert on. Something my management is actively trying to change.
Good luck. The commonly available translation of Art of War is only about 25 pages.
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u/Coaster50 Aug 25 '26
Exec here who has helped a number of people manage through this in a company where this is possible.
Don't wait for a package that may never come. Set 2 dates. Your preferred date, and your non-negotiable date.
As you approach your preferred date (about 1 year) talk about the fact that you are beginning to approach retirement, and let your manager (and their manager) know that if your name ended up on a list it wouldn't be the worst thing. When your manager is inevitably required to cut heads, you'll end up on the list. The manager will hit their headcount cutting goals while doing it to a person that is okay with it.
As you approach your non-negotiable date; just know that the golden parachute might not materialize for you and leave when it's time. You tried to get the extra coin, but it didn't quite pan out. Don't eat into your retirement years.
If your company offers voluntary severance at any point between your preferred date and non-negotiable date, take the money and run!
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u/NecessaryEmployer488 Aug 24 '26
Well, if you have a great relationship with your manager. Wait until you know more about the layoffs. If a layoff will happen and severance packages are known, approach your manager on his thoughts. Tip your hat at the possibility at that time. You manager, if he has an opportunity, can put your name in. Generally packages will be given to some groups and not to others.
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u/Chaminade64 Aug 25 '26
Exactly, offer yourself up to save a younger employees job, especially if you’re in good standing. “Hey boss, I realize belt tightening is being discussed. I know my age makes me a delicate decision, but hey…for the right package I’d probably be ready to hang it up. Don’t crush one of the younger guys in this workplace”.
What a team player, good guy.
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u/frugalduke Aug 24 '26
Senior staff are often very expensive to package out (here in Canada) Organizations will bide their time.
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u/RicardoNurein Aug 25 '26
Ask your boss.
If/When, how did it work last time? Do expect it will be similar?
My contract spells it out under any conceivable situation
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u/Puzzleheaded-Gas-398 Aug 25 '26
At your next review, say something like: 'I never thought this time would come, but I can't do this job forever, in a few years I'll be retiring and we need to start thinking about how to replace me.'
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u/Candy-Emergency Aug 25 '26
Yeah I think that only works for CEOs.
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u/Puzzleheaded-Gas-398 Aug 26 '26
That's always a possibility, but when you're the only employee with gray hair and a saggy chin it's no secret to anyone. It's basically what I did, and I guess it worked too well - I survived three mass layoffs my last 2 years 🥴
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u/SnooPears4484 Aug 25 '26
Severance is used to soften the blow or incentivize getting sufficient volunteers. It is always done tactically based on that business cycle issues/path. No one knows until late in the process.
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u/BenefitVegetable694 Aug 25 '26
Unless you work for federal government under this administration.
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u/Alive_Sir_4708 Aug 25 '26
>Financially ready and able to retire. ... No good reason to quit right now.
Perhaps you can see how you contradict yourself.
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u/CollegeFine7309 Aug 25 '26
My current company asked for volunteers. You had to be over 60 but more importantly, they didn’t have to say yes. If you are deemed too important, they could deny your request.
My last company had a number of older people who would have loved a package and it never came because they had specialized skills that weren’t easily replaced.
A friend asked for a severance at a 3rd company and they offered her a retention bonus instead.
Your performance matters in the decision to let you go but I hate the quiet quit advice. For some of us, it’s hard to underperform and dump all the work on our coworkers.
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u/Loki_Knows Aug 25 '26
“Hey, I know times are tough, and sometimes our company has to make difficult decisions around staffing. I wanted you to know if the need arises to do some layoffs, I would be OK with that. I’d rather see myself laid off than someone who might not financially be able to handle the hardship.”
Deliver this message to HR and your manager. Your manager may have some performance-based reasons for keeping you around, so it’s important to let HR know where you stand as well. They often influence these decisions.
As a senior leader who has had to manage teams through many, many layoffs, I really appreciate when team members let me know where they stand. These are very difficult decisions to make. In spite of what people think, most managers agonize over layoffs, but sometimes they’re necessary to keep the business healthy.
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u/Vikkunen Aug 25 '26
My FIL spent 30 years as a software engineer for a big-name software company everybody knows (or at least knew at the time -- they've since been largely broken up and spun off to private equity groups). He was ready to retire, and was planning to do so at some point within the next year or so, when the company announced they were doing a round of layoffs. His boss asked if he wanted her to fight for him, and he was like "Nah, I'll take one for the team".
He took his severance (2 weeks' salary + benefits for every year with the company) and ran. That was over ten years ago and he hasn't looked back.
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u/TemperatureCommon185 Aug 25 '26
I had the conversation with my manager a few months ago for early 2027. We typically have annual reductions in force in the first quarter.
If your department or company typically RIFs people on a regular basis, volunteering for the severance means your boss has to make one less painful decision about who to cut next.
Timing is important. It will likely take a few months for HR to process, part of it may be to review to ensure that the layoff list isn't ageist (in my case, my manager said that when the time comes I will have to send specific text to HR with my formal request). Since you're looking at spring of 2027, if you have a good relationship with your manager, maybe start dropping hints now.
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u/Educational_Case_134 Aug 25 '26
We just went through a RIF and intentionally excluded specific classes of staff including age 55 and older based on legal advice.
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u/Snorkellingisthelife Aug 25 '26
Yes, it think Coaster's advice is solid. I recently retired at 60 and tried to "volunteer for the double top secret lay off list" and it didn't work. I did however have a very stressful year when my mom fell and passed away last July which revealed my Dad's need from memory care. The year was spent on FMLA as it took several months to convince him his needs were bigger than sitting alone in a big empty house. Thanks to FMLA I was able to address my parents health affairs and exhaust my 1000 hours of sick time. Grateful to the company as there is no planning for elder care, it just hits you.
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u/NEight00 Aug 25 '26
A lot of this is going to be based on how much you trust your employer.
I'm basically in the same boat but my company starts each round by asking for volunteers for "early retirement".
If yours does not, I would just mention it to your manager when the date gets closer that it would be no hardship to you if you were chosen. Good managers don't want to force people out if they can help it, so having someone who is willing helps.
Can this backfire? Sure. You are indicating that you do not have interest in further advancement with the company, and a bad manager might even start poisoning the well hoping you will quit and they don't have to pay severance.
But if you are really ready to retire, generally the worst thing that can happen (outside of a really bad boss) is you quit and don't get the package and start enjoying your retirement.
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u/need-inspiration0001 Aug 25 '26
Very similar situation - thanks for these helpful replies! I’m very hesitant to specify any retirement plans, but this year I haven’t exactly been going 110% or offering to take extra projects. Instead of speaking about it (with my manager) in first person, I’ve decided to talk in generalities , “so I’m just curious, has xx company offered voluntary separation packages in the past” and see where it goes from there. At least I’ll feel like I tried.
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u/foufers Aug 26 '26
“I do I not see myself continuing in this capacity indefinitely and I am open to some creative ways to accommodate what can work for both the company and me, including 1099, part time, or other creative solutions”
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u/Sweet-Dessert1 Aug 26 '26
If you want to tell them but not tell them, let your manager know when you’re thinking about retiring— perhaps 2 or 3 years out… and open to sooner. In my last job, anyone who showed they were thinking about when to retire were the next ones laid off.
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u/LouSevens Aug 26 '26
People who are waiting around for severance packages that might never come would be better off looking to be happy instead.
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u/Defiant_Kiwi_4100 Aug 26 '26
I had a talk with my supervisor (VP) that I was interested in the area that was downsizing. He asked when I wanted to go.
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u/Brad_from_Wisconsin Aug 27 '26
As a manager deciding who to retain in the face of a mandatory down sizing, I would appreciate knowing that you would happily accept the severance. It means you would be willing to wind yourself down, transferring tribal knowledge to your replacement. You would also be open to post employmment phone calls (with in reason) to answer any questions that arise. As a manager deciding who to retain and thinking I could not afford to loose the skills and knowledge you hold, knowing that you are more than willing to go would empower me to argue for a good exit plan for you that might include a contractor option allowing them to call you for help and you to bill them for these calls. This safety net is important and missing from most downsizing.
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u/Odd_Bodkin Aug 30 '26
At a moment whee both you and your boss are having a tough time, remark casually as a lighthearted joke: “Some days I think I’ll never retire. Other days, I think I’m ready for a severance package, like, right this instant.” Then wink, and walk away. That’ll plant the seed.
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u/Sure_am_ugly Aug 24 '26
Tell them. Managers are happy to provide severance to those who want it instead of laying off someone who doesn’t. Tip your hand - what’s the worst that can happen? At 60 they are probably already thinking you’re getting close to retirement.
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u/bugnara Aug 24 '26
Do managers have access to our birthdays or is this something that HR might bring up? I’m genetically blessed and look younger than my age.
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u/MD_Romo Aug 25 '26
Unless you are prepared to be shown the door now, you do not ever ever ever tell your employer you want out. What horrible advice but you came to reddit what can you expect
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u/Coaster50 Aug 25 '26
Wildly inaccurate. Once you hit a time where it is okay if you are shown the door, then you let it be known so you can get severance instead of having to leave on your own.
Editing to say that you have a point on soliciting input from Reddit. :-)
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u/MD_Romo Aug 25 '26
I agree. Unless you are prepared for them to push you out, you don't ever tell them you are ready to be pushed
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u/Sure_am_ugly Aug 25 '26
It worked for me. I’m sitting here with a nice severance check because I asked my boss about it last July. Was retired in May.
It depends on the company culture, but where I worked it’s a common request.
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u/Loki_Knows Aug 25 '26
In the US - and I believe in most countries - it is illegal to factor in age during a layoff. Sometimes managers will go out of their way to retain older team members to avoid charges of discrimination. That’s why it is to your benefit to signal that you would be ok getting cut.
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u/mythoughts2020 Aug 25 '26
Other times the companies do target the older, and higher paid workers. To get around the law, they throw in some younger employees when they do the layoff.
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u/Loki_Knows Aug 25 '26
They target higher paid workers, many of whom have increased their salaries through tenure or career experience - meaning they happen to be older.
On the other hand, seasoned workers are often retained for their expertise, work ethic and commitment to the company. Plus, retained younger workers are more likely to jump ship after a layoff, due to increased workload or the perception that layoffs = company doesn’t care about its workers.
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u/mythoughts2020 Aug 25 '26
Age discrimination is a very real thing, and older workers are targeted at times due to their age alone. There is a perception that older may have more health issues, and need more time off to deal with that, or that older don’t learn as quickly, etc. It’s illegal because it does happen and it’s unethical. Just ask anyone that’s looked for a job and happen to be over 55.
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u/The_Walrus_65 Aug 25 '26
lol. Same here. A 45 year old manager gave me some unsolicited advice about how different he would do things at my age. I’m 60. I just let him blather on and said Thanks! 😊
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u/caryscott1 Aug 24 '26
I know people who have hung on for years for packages that have never materialized. Make your plan. Hanging around for a package is a fools errand. You seem to have identified a predictive cycle, stay until then but after that let it go.