Thread regarding Ford layoffs

Post SRD there has been a trickle of people disappearing from our department. All but one have been long time older employees. Two had recently had health issues and missed a lot of work. One we were told was behavioral related. The others no clue on what occurred. They were just gone and we later heard they were let go by HR. Sure it is none of our business why people get let go. Leaves you very fearful of the next tap being you.

HR has been targeting pension eligible employees. Period! There was a comment about targeting pension people who miss a lot of work. I was SRD’d and would have seen a significant increase in salary if I had worked another year and I missed very little work due to health or personal issues. I was able to retire and have been doing well financially. The first few months were an adjustment because I quickly realized that while working I spent more money than I really needed to. I was a good saver but if I wanted a new trinket or a nice meal in a fancy restaurant I did it. I do a little less of that now but with the reduced stress life is so much better. I’m living nicely on my social security and pension and haven’t touched savings and still have much of my severance pay.

I don’t have the millions in savings that some financial advisers recommend but they usually assume you’ll have no income other than social security. It’s working out nicely. Still have my nice house (almost paid for), a decent new vehicle, have been making some modest home improvements and can take reasonable vacations. I’m smiling more now!

Only you know your financial situation and spending habits. There’s no one size fits all retirement plan. Hope your early retirement works out for you. You’ll enjoy it more than you can imagine.

I think it depends on your total financial picture. Our 401k and IRA balances were projected to be enough to independently finance our retirement. They are mostly invested in the stock market.
We decided to treat the Ford pension as our bond component in our retirement portfolio. We researched the pension guarantee limits and were within the monthly guarantee limits.
Hopefully it works out, one never knows. There is some peace of mind with not stressing about the stock market fluctuations and viewing market dips as opportunities to convert chunks of 401k and Traditional IRA to Roth IRA

Take the lump sum pension. I did, and last year my account gained more than my working pre-tax salary. Returns will not be this good every year, but better than monthy pension losing its power every year due to inflation. Of course, you have to act like an adult and manage your money.

"a fool and his money are soon departed"

If you were planning to retire anyway, then you most likely have a solid plan. If not do that first.

If your house is paid for and you are an empty nester, then this is what we have found

• our monthly spending is well less than my pension, and less than when employed. We are able to save 50% of pension.
• my health improved - have time to cook all meals and grow some vegetables - have time to exercise
  and relax every day
• yes the healthcare premiums increased, but transportation, food, clothing and unhealthy habits decreased.

Fortunately for us, our ideas of a good time are fairly inexpensive outdoor activities. Our spending on outdoor toys did temporarily increase, boots, snowshoes, skis, kayaks. These are one time purchases.

Making the jump to retirement is difficult. The financial industry tries to convince everyone they need millions of dollars to retire. There are many online calculators online that can give you peace of mind. The FIRE movement has some excellent ones.

Now for a slightly bent idea - engineer your walking papers. HR has been targeting older workers who miss a lot of work for stealth release. So if your ducks are in a row, use up all your sick-personal and vacation days ASAP, and then take some additional days off. If you are lucky you will get clipped which means you will get the termination package equivalent to SRD and also be eligible for cobra for 18 months or eligible for Obama care. The package will pay for a lot of medical premiums. And then you can immediately apply for retirement benefits on myfordbenefits.com

Consider carefully on the lump sum vs pension. A coworker has already blown through most of his lump sum from May 2019. He bought a fifth wheel, F250 to pull it, fancy boat and trailer, condo in Florida, mustang for his wife among other things. Only you know your and your spouses financial habits.

The post about understanding your medical plan is a valid concern. If you are not eligible for Medicare you’ll be spending a shocking amount on the Ford medical coverage. Some say that individual policies are less costly than ford coverage. I was SRDd last year, was eligible to retire and old enough to start Medicare. Even though I did not request Ford medical coverage they deducted $1750 from my account during the first month after my severance period. I was able to get the monthly charge stopped but I’m still trying to get a refund for the unexpected charge. I don’t what kind of coverage that would have provided but it’s a hefty monthly amount.

Everyone’s budget is different and I believe the kind of ford coverage available to you varies based on years of service before retiring. Doesn’t hurt to look into it and include it in your financial plan.

For most non - UAW hired prior to June 01'. Your rates for HC insurance in retirement will more than likely go up year in and year out regardless of what you were told when you hired in. This last enrollment for 2020 imo was not an anomaly. Rather a trend that will continue each and every enrollment period until rates are equal to or greater than Open Market plans through ACA.

As said by post below this one make sure you factor this in when considering your retirement goals.

Make sure that you understand the retiree medical plan before you make your decision.