Retirement Plannings: Pros And Cons

Retirement Plannings: Pros And Cons

Legally, retirement plannings do not exist. However, its experts define it as that situation in which a worker who has reach an agreement with the company to finalize their employment relationship. Moreover, who, in compensation for it, reaches some indemnity agreements that are extended over time, beyond the classic punctual compensation. 

Advantages: Retirement Plannings: Pros And Cons

Retirement Planning: Pros And Cons
Retirement Planning: Pros And Cons

Early retirement has some advantages for those workers to whom your company offers it. One of them is, for example, that while they reach the true age of retirement. They may be charging the unemployment benefits. Moreover, while charging a supplement from the company that guarantees a percentage or all of what they were earning among all the concepts. A way to stand without worrying much about your income.

Another advantage offer by this figure is that workers normally agree on it in a personalize way with their company. Although it launches an initiative that includes a certain number of early retirements. Each of them is negotiated individually so that the worker has some margin to adapt it to his personal circumstances.

On the other hand, this formula is often referring to as a non-traumatic exit for laid-off workers, and indeed it seems to be. They are granting a series of guarantees to be ‘covered’ until their retirement time arrives and, also, their pension does not look trim. There are also certain advantages in accounting for companies that come to these formulas. Finally, some workers are willing to stop working. For them, it is also an advantage.

Disadvantages

Retirement Planning: Pros And Cons
Retirement Planning: Pros And Cons

There is a first emotional inconvenience for those workers who really feel still useful and wanting to work (because they are still old for it). Their company ‘condemns’ them to go home. Thus, it does not seem far-fetch that many employees can stop feeling useful and even fall into a depression.

Another disadvantage offered by this formula is that there is a legal vacuum around it. Technically you are unemployed, but you have been able to agree with the company not to return to work (for that you are paying a supplement). But, what if the employment services of your Autonomous Community call you for a job?

In the beginning, an employee who is a candidate for early retirement must take into account and study the tax implications of his new situation. Still, depending on his situation, it may not be so, and you should also study your relationship with the Treasury (and taxes) during the time you spend until you can retire.

Also, the retiree must study very well the future economic implications that this step entails. You should especially calculate how much your future pension will be cut when it is time to retire. Especially if it is early retirement. In this regard, it is advisable to have a private pension plan to complement the public pension. Thus, it guarantees a quality of life for our self of the future.

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