With the changes made to management healthcare effective in 2022 and the always downsizing potential to be downsized, is smarter for a 51 year old manager (who has the rule of 75) to stay with the company or leave in 2021? I can’t afford to retire and It’s hard to start over somewhere else. But, if you get cut in a year or two, you lost the health care option and you’re trying to find something at an even older age. No right answer, just interested in peoples thoughts.
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ROTFLMAO. So Upper management and C suite haven’t been doing the same thing on a far larger scale turning this company int a debt zombie while enriching themselves in the process
That is the fundamental problem with AT&T workers, they are just dragging their time out. They are not good contributors, they just stay around s—ing blood from the company.
The benefit can be pulled at any time - even post-retirement - just like any other. Why would you make a decision to leave based on the possibility AND probability that AT&T won't be funding that benefit for you until you are 65?
At $25k a year for medical if you leave after this year (or are surplussed) and a good lump sum payout using 2020 interest I would retire EOY. Test the market now - if you don’t need medical then consulting offers the best pay and most flexibility.
I’m struggling with this decision too. Some are saying Biden and his majority will get universal healthcare passed between now and 2022 - so employer provided healthcare will immediately become a thing of the past. I’m hesitant to bet on that. Good luck to you on your decision.
Listen to the earnings call tomorrow morning to see how the c suite sells the positives of the benefits changes to wall street. It should be a crystal clear decision on your part after hearing that.
Get busy living or get busy dying, I'm just a few years older than the OP and still with T. 5 years ago I was involuntarily moved into a new role due to a re-org which I knew would be a death sentence, I immediately polished up what I believed to be a k–ler resume, degree from a top-tier university, several specialized technical certifications which I keep current, speak 2 languages, have positive social media, and nothing negative in my back ground, to all of that I could not get an initial interview with my top tier targeted companies, I believe that my age coupled with my 19 year tenure with AT&T were strong deterrents, so at 51 start looking now an networking as if your families life depends on it, or make an internal play to another part of T that may have a better chance of some longetivity. Good Luck!
, have friends in finance/insurance, tech and manufacturing with these same concerns, some I know that are with a large defense contractor do not seem as concerned-based on their divisions long term DOD contracts
Great points about missed social security wages and 401k contributions. Each person needs to look at the full picture for their circumstances.
And, yes, when my time comes, I am without a doubt taking my pension as a lump Doehave been around long enough to see how employees of other companies have lost their pensions. Not taking that risk.
Remember a gap in employment and contributions will reduce your ultimate Social Security rate. Also for now AT&T is is partially matching 401K contributions, so consider that in any decision to leave.
Much depends on what part of the company you're in and how secure you feel in your role. It all could change radically in 3-5 years, we all have seen that happen.
I'm not trusting the company healthcare offer to be around in my later years. Enough financial exigency, enough pressure from shareholders, and retirees will be expected to "contribute" (though lost benefits) or "do their fair share" to keep the doors open. For that reasons, when I leave I am leaning toward lump-sum on pension when I ultimately leave. AT&T could become the next GM. No one in 1979 would have thought GM and companies like would go bankrupt and threaten existing pensions.
I’d strongly recommend you stay with the company until they kick you out...and hopefully you’re in a position to retire. Healthcare costs in retirement is expensive, and don’t count on those costs dropping significantly when you become Medicare eligible. It’s a fallacy that Medicare is cheap. The average social security benefit today is about $1,500 per month. That fact means you’d better have saved a decent amount of money so that you’re not dirt poor in retirement. Stay, collect those paychecks and save like crazy.
Putting any faith in T's "ethics"....thinking they give a rat's a$$ about you, your family, your finances, health or anything else is a study in futility.
You will be "exited" as soon as they can figure out how to do so.
In the mean time, run them out of $$$.
Smile and wave. "Yes Sir! Yes Ma'am!"
And plan.
They are very easy to beat using their rules.
The short answer is “It depends.”
You are correct, OP, that there is no one right answer. There are a lot of variables (age, current job market in one’s location, current assets and debts, current health, plans regarding when to retire altogether, etc.)
I am choosing to stay. I need to work full-time another 3-4 years before I can retire. Will try to stick it out since I have put in this many years. Am watching my expenses very carefully/not spending on anything unnecessary, so that if I get surplussed before I am ready to leave, I’ll still be okay and have an extra cushion while I look for something else.
Also, in looking at my YTR statement in e-Link, there is a “N” indicating that I am not eligible for any retiree medical subsidy in the first place. So leaving before 2021 is over is not a consideration in my case.
Best of luck to all.
Remember, AT&T may cancel your medical insurance in the future regardless of what they promise now. Giving up your job too early will have lasting effects. I’d bet T will get rid of all retiree insurance.
sux that att put people in this position. take away items that are part of your employment agreement.
I left when I was over 50. I did not have the health insurance coverage until medicare so the 75 rule didn't really mean much to me and was mostly sticking around for the pension. but decided I had enough of wasting my life at a company that is dying and could care less about it employees and leaving was the best decision in my life. I took my skills and talents and now I am using them for another company that blows att stock price out the water and we are growing. it is great to be with a company that has energy and isn't dying.
the only innovation going on at att is where can we cut expenses. so if you are a financial guy or cpa or lawyer you can have a good career at att. not sure who would want to live their life that way though.
Search other employement this entire time. If you find something that pays well take your lump sum and leave. If you don’t then you don’t really have a choice. Worrying about what if’s do you no good. Control as much of your situation as possible. Don’t be a slave to the medical coverage benefit. Find alternatives and then make a choice.
It never hurts to proactively look for a better opportunity while still employed. Everyone should be working towards a goal that employer income becomes a smaller % of your total income so you are diversified and losing your job is less impactful.
1 question... they let you go after 2021, can you afford to buy your own health coverage?
Almost identical situation. I’m staying. Job market isn’t great right now, and my spouse’s employer provides the medical insurance. I agree with what someone stated below, we will likely be targeted in 2022. Oh well, if that’s the case I will take my severance and head into the sunset.
"I know it can s— but I'd say stay on til they pay you to leave."
This attitude is makes AT&T a market leader!
Confirm the pre-medicare health insurance then check employment with other telecom and cable companies. For those that have a benefit that is no longer available, that group will be the target of future surplus. You may have kept your job just because the company has a plan to cut employees after this cost is removed. Lock in the savings. Single, non-smoker, age 63 health cost me $1,400 a month until age 65. You won't be cut until 2022 when health insurance is not covered.
I know it can s— but I'd say stay on til they pay you to leave.
Check your pension plan if you are under age 55, and you have less than 30 years service.
I’m struggling with this too but I think I’m going too
Seriously get busy seeking employment elsewhere now. If you can't retire then you have no choice. Especially if your Rule-75 that is a huge target- no doubt about it.
There's little to no incentive to stay if you can replace most of your income stream by finding new employment. Take the lump sum while interest rates are favorable and run!
Healthcare pre65 coverage is worth 25k per year if you have a family. IMHO too risky to stay and make it another 12-14 years.
There's always walmart
Got a marketable skill set?
I'd go.