My humble opinion
The buyout offer of $35,000 on the surface looks
like a real good deal for the GM/Delphi workers. But,
is it really a good deal or is it just another carrot
being dangled in front of the workers face to try
get them to make an irrational decision?
I could have taken the same buyout when I had
plans on working three more years. For me, the decision
was an easy one. $35,000 is equal to about six months
pay if a worker works some overtime.
I decided to work the extra three years. Why? Because
that meant I would make $210,000 during that three
year period plus I would have three more years time
invested into my retirement.
My opinion is that if a worker has plans of retiring
within six months, this is a good deal. Take the money
and run. But, if one had plans of working longer in
their career then one must stop and do the math.
If I had taken the buyout when offered it would have
cost me $175,000 over that three year period in lost
income. Also, I would have lost three years of retirement
credits when I turn 62 and draw Social Security.
Three years of retirement benefits at $50 a year equals
$150 a month retirement benefits for the rest of my life.
That equals $1800 a year in retirement income.
The math tells me that I would have lost $175,000 over
that three year period plus $1800 a year in retirement
when I reached age 62. That $35,000 offer would have
been a very poor choice for me to grab. Yet, a lot of
workers couldn't resist the temptation of grabbing that
$35,000 and running.
If we have plans on our working careers we should follow
them. If your plans are to retire within six months my humble
opinion would be to take the money and run. If you plan
on working longer than six months than you must do the math.
Also one must remember that for the maximum SSI and
Medicare benefits, one should work to the age of 55.
$35,000 may look like a lot of money but as one can see,
it could cost you lots of money.
Everyone looks at things differently and this is good. But,
do the math on buyouts before making decisions that have
far reaching consequences. What looks good now may not
look so good down the road.
It's your money so you must make your own decision on
whether to accept the buyout or nor. Please don't make
an irrational decision when the carrot ($35,000) is dangled
in front of your face. That $35,000 could cost you your
livelyhood in the future.
PLEASE, PLEASE, do the math before making a decision.
Hopefully this will make your decision a lot easier.
Local 699 Retiree