Retiring early with a severance package is one of the smartest ways to leave the corporate world. Walking away without trying to secure one could leave tens of thousands, or even millions, on the table.
I also believe that retiring early is better than retiring rich. For those who choose my preferred retirement path, negotiating a severance and getting laid off instead of simply quitting is essential. The severance provides a financial cushion, helping you navigate the early stages of retirement, especially during the critical first year of uncertainty.
The main resistance to this idea usually comes from employees, whether outperformers or underperformers, who don’t believe severance negotiations are possible. “Why would a company pay me to leave?” is the most common question I hear. Some even view asking for a severance as dishonorable, as if their life’s purpose is to serve their employers forever. How unfortunate.
If you believe something isn’t possible, it won’t be. That’s why I like to share real-life examples of generous severance packages whenever I see them. These examples help show what’s possible. Because once you know what’s possible, you gain the courage to take action.
A Great Severance Package Offered By Automattic
Automattic, the creator of WordPress, has powered Financial Samurai since 2009. I’m grateful for their content management system, which has made it relatively easy to start and maintain my site for so many years. Without Financial Samurai, I wouldn’t have felt as fulfilled.
WordPress is an open-source system that allows developers to provide additional value to webmasters and visitors. For instance, I recently upgraded my comment system using a new plugin, to improve dialogue and reduce spam.
In an effort to reduce long-term company costs, Automattic offered a generous severance package to its employees. Here’s what the CEO outlined in his blog post.
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