Hellllllllll NO! I'm gonna stay right here and collect this fat paycheck while riding this crazy train to the next downsizing! The only thing I am working towards now is that fat stack of a severance! I hit rule of 75 in August and my 21st anniversary with GSK is in September! See ya, wouldn't wanna be ya!
in same boat......don't count your chickens before they hatch.......guess you have heard the new policy !!!
I was in your position in 2010. They will pay you at goal bonus, grant you the 75, and give you what retiree benefits are allotted now. Your cash balance pension and 401K are yours already. You will find that the cash balance pension plan is not enough, even if you take the accelerated plan. If you are 59 1/2, you can get to your 401K without penalty. You may have to consider continuing work unless you have other retirement savings. Either way, you have won the lottery of life.....be thankful, enjoy, and remember that there are many who will never have a chance to make it this far. Wish them well.
Dude from 03/18 is 54 - will have 21 years in September, turns 55 in August... hope there is no one in HR that can do the math and check the birthdates and years of service...
Hate to tell you but 21 yrs. is not a lot; real pension money does not kick in until 30 yrs. and at 55 unless you can live on not much you will need another job and there are not any especially for people 55; you will see.
Hate to tell you but 21 yrs. is not a lot; real pension money does not kick in until 30 yrs. and at 55 unless you can live on not much you will need another job and there are not any especially for people 55; you will see.[/QUOTE] Glad you're not my financial planner. First of all, pension is "cash balance" at GSK. If you leave, you can take it with you and if you choose to retire at age 55, you can choose to take lump sum or various annuity options depending on marital status and what you want your future to look like. After 21 years at GSK, you should have a pension of around $150,000. Definitely not enough to retire on, but pension alone, 5% of your income with 3.5% growth per year, will never get you to retirement, no matter how many years you stay with GSK. At about the age of 55, with 21 years at GSK, assuming you weren't working in a grocery store making just above minimum wage for the previous 20 years, your social security would be $2200/month, if you elected to take it early, but you would have to wait until age 62. The real money comes from previous 401K contributions and 4% company match plus GSK 2% Share Option Plan, which has been extremely generous and motivating. If you saved well, and contributed, after 21 years, you should have $1 million in your 401K. You can't get to this money before age 59 and a half without paying a 10% penalty ($100,000 on $1 million) which wouldn't make sense. At age 62, with 401K, pension, and social security, you should have about $7,000+/month to retire on. The key for this 55 year old, is getting to age 59 and a half or age 62, to get into their 401k without penalty, and waiting until at least 62 to get into social security. Of course full social security at age 70, would be much larger, over $3500/month. So, the one thing that is correct is that you would need a job, to cover your expenses until you meet this timeline. But, what's incorrect is that there are no jobs out there for people who are 55. I've been approached by 5 companies in the last 2 months, willing to exceed my GSK compensation, but I can't make a move due to stock grants, tenure and possible future severance package, and vacation. The industry is crying for people with experience as other companies launch blockbuster products. Save as much as you can fellow GSK colleagues. Don't live beyond your means. Work hard and do the right thing, and you will retire extremely comfortably! Live long and prosper!
Relax folks. You can take your 401 money without the 10% hit if you're in your 55th year. I did-life's too short. Look up "rule of 55."
My accountant also said there are ways to avoid the penalty if you are loss your job and want to begin drawing from 401k. You have to pre-set a fixed amount for 5 years. Something like that. Worth looking into when and if you have to cross that bridge.
OP#8 here; I should add that my house is paid off! And there is no other usual debt! eg; car loans or kid's college or home equity loan! And my wife is still happily employed! Thanks for the feedback every one , but I have got this gravy train covered!
