8 Things to Consider If You Are Offered a Job Buyout

Severance pay, health insurance, bonuses and other things to ask for

Matt Swenson,

AARP

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En español

Published March 13, 2025

a person sitting at work with money dangling above their head

Glenn Harvey

Employers looking to cut costs often begin by offering buyouts to staff, particularly long-tenured employees who earn the highest salaries.

For example, to shrink the size the federal government, the Trump administration this year has offered buyout packages to workers, starting with the “fork-in-the-road” offer emailed to nearly all executive branch employees earlier this year and continuing offers of $25,000 buyouts this week to Department of Health and Human service employees. Private businesses such as Google, Nissan and The Los Angeles Times are among companies currently restructuring their workforce through similar packages.

While it’s natural to feel mixed emotions about a buyout offer, some older workers can use the severance and other benefits associated with a voluntary departure as a runway to future endeavors.

Career coaches say that, at the very least, considering a buyout should be seen as a moment of introspection.

“The first mindset you have to have when you face something like this is that it's not about retirement, it's about reinvention,” says Thom Singer, a career coach and motivational speaker.

Singer, 58, experienced a late-in-life transition without the benefit of a soft landing. His speaking business suffered during the COVID-19 pandemic, an era in which even global companies like Delta, AT&T, and IBM used voluntary resignation offers instead of layoffs to cut jobs. He now runs a small nonprofit organization, does some career coaching and is building back his speaking opportunities as a side project.

The financial flexibility a buyout can provide can be an opportunity to pursue new professional gigs, a blessing in disguise for longtime workers who are hesitant to try something new.

“Sometimes, you need that kick in the tush,” says Keri-Lynne Shaw, founder and CEO of The Salary Bump. As a certified Professional Coach with over 15 years of experience in human resources, Shaw aims to empower individuals at career crossroads.

First and foremost, remember the decision on whether to accept a buyout is up to you. If you have concerns about whether the buyouts are a prelude to layoffs — as was the case with the federal "fork in the road" offer — speak with your supervisor or your human resources department about your company's financial stability and prospects for your role there.

Here are some points older workers should consider as employers offer buyouts.

1. Be proactive and ask for a buyout

Shaw advises workers who might be seeking a change already – or sense one is coming due to a merger, new leadership or general unease in the industry – to ask about a buyout before the employer even offers one. They may be rewarded with a better package for making the process easier for the employer than it otherwise might have been.

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“Behind the scenes every day your leader is having a conversation about budget, and every day behind the scenes, your leader is panicking about not hitting their numbers,” says Shaw, drawing on her HR experience. “Get in the driver's seat of your life, not just your career.”

2. Take stock of your financial situation

Before accepting the offer, workers should use the opportunity to assess their financial status. Some people may not be able to afford to forfeit a regular salary even if given a severance package. Keep in mind that it often takes older workers longer to get hired for a new job, so your savings may need to cover a longer period. When they do find a new job, many older adults receive a lower salary than they previously were earning, which may be a factor in your decision.

Once you’ve considered the numbers, you may decide, all those years of hard work could pay off through accepting the buyout.

“If you're in a financially secure enough position to do it, you can actually have work on your own terms [after a buyout],” Singer says.

3. Don’t rush your decision

One of the biggest mistakes individuals presented buyouts make is accepting the offer immediately,” said Megan Dalla-Camina, founder and CEO of the leadership company Women Rising, who spent two decades as a corporate executive at global giants including IBM, GE, and PricewaterhouseCoopers.

“Ask time to review the details so you can consult with a lawyer or a financial advisor,” she says. “Really understand what's being offered.”

Under the federal Older Workers Benefits Protection Act people age 40 and older must have at least 21 days from the date the buyout offer was made (or 45 days in a group layoff) to consider whether to waive their age discrimination protections by signing for the severance package.

4. Negotiate for a better buyout deal

Shaw shakes her head at the percentage of workers – which she estimates to be 45 percent – who take buyouts without negotiating. She says some baselines to seek are at least six months of severance pay, all the bonuses you are due, COBRA health coverage and career transition services paid for by the employer. Many companies will consider or agree to such requests, if they haven’t already included them as part of the initial buyout package. “This [negotiation] shouldn’t be a fight,” Shaw says.

5. Think about all you could do next

A buyout is not a layoff, so there is no obligation to leave a company. But having the excuse to think about your future can be helpful, especially if you’re a person who mostly thought of work as a way to make a living and reserved enjoyment for your hobbies or free time. “You can follow your heart and do something that has great impact,” Shaw notes. “There’s no reason you can’t have both.”

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Workers who accept buyouts can change organizations and/or industries, choose to go part-time or start their own businesses. “If you look at successful entrepreneurs and successful business owners, their success started much later in life,” says Shaw.

6. Don’t be afraid to ask for help

The professional and personal circumstances that lead to a buyout offer can weigh on emotions. Seeking input from colleagues who work for other employers could be helpful, as could speaking to a career coach or mental health expert. Regardless of the final decision, there will almost always be some self-doubt. “There is no shame in asking for help,” says Singer.

7. Perform a skills audit

A person who has worked at the same organization for most of, if not, their career may not be able to imagine themselves providing value elsewhere. “That’s just not true,” Dalla-Camina says. “I recommend that people start looking at what are all of the transferable skills that they have, whether it's management skills, leadership skills, or knowledge in a particular government area. Whatever it is, everybody has transferable skills.”

Don’t worry about boasting, she added. Just be factual.

8. Lean on your network

One advantage some older employees have is the contacts built through years of experience. Singer said now is the time to consult them for advice and leads for new opportunities.

Shaw also adds the importance of a virtual network like LinkedIn. “Have a personal brand,” she says. “Stay connected with recruiters that you've worked with in the past.”