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You were offered shopping. Your employer wants to pay you to quit. It’s a huge chunk of change.
Should you accept it?
Companies offer shopping to thin the rank and spend the money in the short term to save money in the long term.
Employers often use shopping to avoid layoffs. And that idea is that only you should give you a pause.
The Trump administration is aiming to offer takeovers to all federal workers this year, reducing it by up to 10%. Approximately 75,000 workers accepted.
The private sector has been offering acquisitions to US workers this year, including Google, Unitedhealthcare and Nissan.
Shopping may sound attractive. A five-digit retirement package may be the most money a worker has ever seen on a single salary. But it is also the final salary your employer gives you.
“It’s like a lottery winner. Some people think the money will last longer than that,” said Donna Walton, wealth strategist at TD Wealth.
If you are contemplating your shopping, some considerations are universal: how big is the retirement package? Am I close to retirement? Did you want to quit that job anyway?
However, the current economic environment presents its own challenges.
Approximately 2 million Americans have not been working for more than six months, the Labor Bureau reported in May that it was the largest in more than two years. The job market has slowed down over the last few months. Companies are reducing employment due to uncertainty over President Trump’s tariffs. Artificial intelligence is swiping jobs from new graduates. A recession fears looms.
“It’s a very soft job market,” said Michele Evermore, a senior fellow at the National Academy of Social Security and a former Biden administration labor official. “It’s a very time of economic uncertainty. I think people depend on their work.”
Below are five tips for employees considering buying out in 2025.
Seek for an acquisition
Start with a proactive step. Maybe your employer doesn’t offer acquisitions. But you’re restless to make a difference and you’ve heard that your company wants to cut costs.
Consider approaching your manager and seeking an acquisition. Often there’s nothing to stop your employer from creating a voluntary retirement package just for you.
“We’re looking forward to seeing you in the future,” said Michael Scarpati, CEO of Retireus, the Financial Wellness platform. “It’s kind of a win-win for both parties.”
If you are looking for shopping first, you may get a better retirement package than your employer ultimately offers to everyone else.
But if you’re not ready to take it, don’t ask for shopping.
“If they provide it to you, you have to be willing to leave,” Walton said. “That’s not what you want to bluff.”
Negotiate terms of purchase
A typical acquisition could offer a 4-week payment. Furthermore, this is one week of my annual work at the company. Additional health insurance coverage may be available. It also helps you find a new job.
About half of the workers have accepted offers to buy without negotiating, AARP reports. But it is not harmful to demand better conditions.
“Think about going for a job interview,” Scarpati said.
You can seek a year’s retirement benefit rather than a few months. Perhaps your employer will cover health insurance costs while you are searching for a new job.
David John, senior strategic policy advisor at AARP Public Policy Institute, said some workers will hire lawyers to negotiate the acquisition.
That may sound extreme, but remember: an acquisition is a business proposal. Contracts can be complicated and sometimes include private contracts and non-competitive clauses.
Even if you haven’t taken your lawyer to buy-out negotiations, Walton said, “You should meet at least one person.”
Test the job market
Experts say you need to measure your likelihood of finding another job before you leave your current job.
If you’re working in a shrinking field, or in an area that is struggling financially, you may already know that.
“If you’re working for ThinkTank, it’s quite different to getting an acquisition in DC or if you’re working for an oil rig in South Dakota,” Evermore says.
Evermore said to find out how many people in your area are applying for unemployment insurance and how many people will last for the benefit role.
Better yet, apply for some jobs. Check if there is a bite. If not, it may be a good sign that is not for you.
In the best case scenario, you can line up new jobs before you make an acquisition.
Measure the risk of layoffs
Many employers offer shopping to avoid layoffs, or at least delay them.
If you have an acquisition offer, weigh the possibility of relying on layoffs once the acquisition is over.
“Responsible businesses will deal with those concerns right away and say yes or no,” said John of AARP.
If there is a possibility of layoffs, consider whether you could reach the layoff list. Ask your manager if you are vulnerable.
If your company has endured layoffs in the past, look at the retirement packages that those workers have received.
In some cases, Walton said the acquisition package might be “the same as what the company offers if we offer you six months from now.”
please take it easy
Many federal workers who have received shopping from the Trump administration only had a few weeks to make a decision.
Experts say it’s not that long.
“If you ask someone to make major life decisions that could involve relocating the whole family, you should get it for at least a few months,” Evermore said.
Ideally, Scarpati said six weeks would be the “minimum” time frame for the acquisition offer. 90 days is more reasonable.
Use that time to “think where you are in your career,” Evermore said. Tell your friends, colleagues, and loved ones about your options. Test the job market. Ask yourself if you are ready to uproot your family and move around the country.
Run the numbers. If you’re a medium career, are you sure you have enough emergency savings to survive a period of unemployment? How do you cover your health insurance? How generous is your state’s unemployment allowance?
If you’re nearing retirement: When did you plan to get Social Security? How will you cover your health insurance until Medicare begins? Do you have enough retirement savings?
Consider meeting with a financial planner.
“Ideally, I completed this financial plan before this happened.”
