If you work at Rogers, you’ve likely heard about the Rogers buyout, where the company is offering voluntary departure and early retirement packages to thousands of employees.
On the surface, these offers can look straightforward. A lump sum payout, the option to leave earlier than planned, and the flexibility to move on to something new.
But the reality is, this decision isn’t just about leaving a job.
It’s about deciding what the next 20 to 30 years of your retirement will look like financially.
And for many people, it’s being made under more time pressure than they’re comfortable admitting.
Who Is the Rogers Buyout Actually For?
A voluntary departure package isn’t designed to optimize your retirement.
It’s designed to help the company reduce costs.
That doesn’t make it a bad offer. It just means the starting point shouldn’t be:
“If they’re offering it, it must be good.”
The better question is:
Does this actually make sense for your situation?
Two employees can receive the exact same package and have completely different outcomes.
- What matters is how it fits into:
- Your age and timeline
- What you plan to do next
- Your financial position
- Your retirement income needs
What Will You Actually Keep After Tax?
This is where many people get caught off guard.
A severance or early retirement package can look attractive on paper, but the number that matters is not the payout; it’s what you keep after tax.
In many cases:
- You’re already earning income during your final months of employment
- You receive a large lump sum on top of that
- Your total income spikes in a single year
That can push you into a much higher tax bracket.
In Canada, this can significantly reduce the net amount you actually receive.
There may be ways to manage this, such as contributing to your RRSP, but that depends on how much contribution room you have available.
Ironically, if you’ve consistently maximized your RRSP while working, you may have less flexibility to reduce the tax impact now.
How the Rogers Buyout Affects the Rest of Your Retirement
Most people don’t plan for a buyout scenario in advance.
That means this decision has to be coordinated with everything else in your retirement.
For example:
- Will you start CPP earlier or delay it?
- How will fewer working years affect your CPP entitlement?
- How will you draw income from your RRSP, TFSA, or non-registered accounts?
- Will your spouse continue working?
This is where the decision becomes more complex.
It’s not just about taking a payout. It’s about how that decision impacts your long-term income, tax efficiency, and flexibility.
What Happens to Your Benefits?
This is one of the most overlooked parts of a voluntary departure package.
Benefits like:
- Extended health
- Dental coverage
- Drug plans
- Life insurance
Often continue for a period of time after you leave.
And then they stop.
The key questions to understand are:
- How long do they last?
- What happens when they end?
- What will it cost to replace them privately?
These costs can be meaningful, especially in retirement.
What Most People Don’t Think About
There’s also an emotional side to this decision.
Work provides more than just income. It provides:
- Structure
- Routine
- A sense of purpose
A simple question worth asking is:
If this package didn’t exist, would you still be thinking about retiring right now?
If the answer is no, that doesn’t mean the offer is wrong. It just means you don’t want urgency to make the decision for you.
In many cases, the most successful retirements are ones where people are moving toward something, not just away from work.
Making the Right Decision for Your Situation
Most people don’t regret retiring earlier than expected.
But many do regret not taking the time to fully understand how that decision would affect their:
- Income
- Taxes
- Long-term flexibility
This isn’t really about whether the Rogers buyout is a good or bad offer.
It’s about whether it’s the right decision for you.
And if it feels like a big decision, that’s because it is.
If you’ve received a Rogers voluntary departure package and want to understand how it impacts your income, taxes, and long-term retirement, you can connect with our team here:
