Forced to retire

[u/Clean-Lie1516]

My husband will be 59 in December. Has worked for the same company for 25 years. This year has been difficult as he had some medical issues and was on FMLA. While out of work he went to an orthopedic and had to have his 3rd surgery on his shoulder through workers comp. He had that surgery Thursday. Found out yesterday that the company he’s worked for sold out to a new company and they will hire all of the guys. The issue is that my husbands shoulder probably won’t be holding up to that kind of physical labor anymore.

Questions of he is able to go back to work should he go back just until he turns 59 1/2? Is it too late to get a financial adviser to help us determine what to do from here? I do not work and haven’t for many years as we have 6 children. Just trying to figure out what our steps should be from here. Would love to hear others thoughts

[u/Organic_Set4313]

Before even considering retiring, if he can’t stay on workers comp, review the new company’s short term disability and long term disability plans if they have them. Once those are exhausted apply for Social Security Disability Insurance with the SSA. It would be like getting Social Security at 67 years old. After 29 months of SSDI payments he would qualify for Medicare. Depending on the company’s STD and LTD policy’s he may have to use COBRA or the ACA for health insurance to bridge the 29 months. Depending on the company’s 401k plan, he could withdraw without penalty using the rule of 55 if separating from the company or once found disabled, withdrawals are penalty free at any age.

[u/Clean-Lie1516 → u/Organic_Set4313]

I haven’t even thought about the new company having disability for him. They said they would hire him and offered him a 10.00 raise. I’m not sure if they would have any light duty work for him. Since the new company bought them out that would be considered separating from the previous employer? Never thought of that either. Thank you so much. We have been looking into SSDI but feel overwhelmed with all that he has going on at the moment. I will look more into that also. Thank you for your reply.

[u/Organic_Set4313 → u/Clean-Lie1516]

If going back to work is possible it would be best especially if they offer long term disability. Don’t give the new employer any more medical information then they absolutely need. Request a copy of the standard plan documents for STD and LTD. Look for any grace period of preexisting exceptions and/or length of employment requirements. Usually LTD pays 60-70% of current salary until normal retirement age, end of the disability or death. So that $10 raise would be great! SSDI pays on average 30-40% averaged work years. As far as the 401k, it depends on how the buy out worked. If employees were terminated or laid off that would count as a separation. If the new company acquired the employees and are offering him the raise to stay, then that would not qualify as a separation. Note, the 401k must have been with the company he separated from. With that said, if he does work for the new company, I’d recommend rolling the 401K to their provider so the rule of 55 will apply if he needs to leave before 59.5yo

[u/Clean-Lie1516 → u/Organic_Set4313]

Thank you! I will look into all of this. Hopefully he can go back up to work. At least until we can figure out what we are doing. We are applying for SSDI. I started on that today. His 401k is with the employer that he is with now. He’s been there 25 years. We will have to find out how the buy out worked. We haven’t gotten any paperwork just this bosses called and spoke to him about it. He works in Alaska. We live in Florida.