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What are some tips for negotiating early retirement packages?

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When negotiating early retirement packages, employees should understand their value to the company, use their worth as leverage and offer to participate in company operations after retirement, according to Merrill Lynch. Employees can also request to become fully vested at the time of retirement rather than on the plan's set schedule. All early retirement negotiations should start as soon as possible.

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Full Answer

The employee's expertise is one of the most important bargaining tools in an early retirement negotiation, states Merrill Lynch. To convince the employer to sweeten the retirement package, an employee can provide consulting services for a set amount of time, assisting with recruiting or serving as an adviser to high-level executives. Merrill Lynch also advises employees to consult with a financial adviser before beginning negotiations to get a better understanding of interest rates, 401(k) plans and nonqualified plan options.

Employees who are faced with a sudden early retirement option also have room to negotiate, asserts U.S. News & World Report. The employee can ask for subsidized health care benefits. If the company is offering buyouts because of financial troubles, the employee can smooth the transition by staying on for a few months in return for a larger retirement offer.

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