Have you or someone you know recently received a lump sum/cash offer by an employer to retire or otherwise leave employment early?

A lump sum sounds enticing, but with all factors considered, it isn’t always a great deal. While the decision to take an early-out incentive is personal, consider the following:

1)How will your health insurance be affected?

2)If you have a pension, what will retiring early cost you in lifetime pension benefits? What about Social Security?

3)How close are you to a pay raise?

4)Do you have enough saved?

5)What happens if you don’t accept the offer?

6)How quickly can you find another job?

7)How will this affect your taxes?

8)How’s your health and well-being?

If you aren’t ready to fully retire, try negotiating for a reduced schedule. Employers are open to a transition plan, especially if you are willing to train your replacement. You could also hold out to see if they’ll sweeten the deal.

Don’t let a lump sum be the reason you retire. But if you were going to leave anyway, carefully weigh your options with your team of trusted professionals.