What happens when someone is given the golden boot?

By Chizoba Morah AAA
A:

In business, the term "golden boot" describes the package used to convince older workers to take early retirement. Forcing an employee to take early retirement is against the law and can be viewed as age discrimination. In order to circumvent lawsuits that could result from violating labor laws, companies often offer the employees they wish to push into retirement various incentives and financial benefits.



Customarily, companies offer golden boots to higher paid long-time employees in order to clear the workforce and hire new employees at lower salaries. In addition, golden boots sometimes are offered by companies seeking to cut the size of their staffs overall.



(For more on this topic, read Retirement Plans and Negotiating Severance Agreements.)



This question was answered by Chizoba Morah.



RELATED FAQS

  1. How do deferred tax assets help in meeting retirement goals?

    Learn how tax deferred assets can help individuals achieve long-term financial goals such as retirement and how they differ ...
  2. What are the best ways to pay less income tax?

    Learn about reducing your income tax burden by contributing to an employer-sponsored retirement plan or IRA, and see what ...
  3. How do I calculate my Social Security break-even age?

    Learn why age plays an important role for when to start receiving Social Security income and how calculating break-even age ...
  4. Are treasury bills a good investment for retirement savings?

    Find out whether Treasury bills (T-bills) are a smart investment for retirement, and learn why opportunity cost is a significant ...
RELATED TERMS
  1. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  2. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  3. Variable Annuitization

    An annuity option in which the amount of income payments received ...
  4. Gold IRA

    Definition of Gold IRA
  5. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all ...
  6. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...

You May Also Like

Related Articles
  1. Trading Strategies

    Retirement Investing with BlackRock's ...

  2. Professionals

    Why Retirement Advice Is Better But ...

  3. Professionals

    Coming Soon: Private Equity In 401(k) ...

  4. Mutual Funds & ETFs

    Hot To Build An Investment Portfolio ...

  5. Professionals

    Ways To Cut 401(k) Expenses

Trading Center