Should You Accept a Buyout Offer Like the One Trump Is Offering Federal Employees?

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  • Feb 11, 2025

As part of President Donald Trump ‘s efforts to trim government spending, the Office of Personnel Management recently offered more than two million federal employees full pay and benefits until September if they voluntarily resigned. Three federal employee unions have argued that the deferred resignation offer is an “unlawful ultimatum” to force the resignation of government workers under the “threat of mass termination.”

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On Feb. 6, the offer was temporarily blocked and on Feb. 10, a judge ruled that he will continue to pause Trump’s federal buyout offer, though 65,000 federal employees had already taken the offer.

Whether or not you work for the federal government, it’s plausible that you may be offered a buyout at some point in your career. If you’re in this scenario, it’s important to weigh the pros and cons.

Here’s what you need to know before deciding to take or reject a buyout offer.

Why You Might Want To Take a Buyout Offer

Depending on your individual circumstances and career goals, accepting a buyout offer may be in your best interest. For example, if you know layoffs are coming and feel that your position is likely to be eliminated, a buyout might be a good option.

“You can use it as an opportunity to continue your career elsewhere,” said Ryan Miller, director of client success at Employment BOOST . “Also, you might have the ability to negotiate certain terms of a buyout.”

If you were already planning on leaving your company or to make a career transition, this can be a financially sound way to enter a new phase in your career journey.

“Buyouts often include severance pay, which can provide financial support while you explore new opportunities,” said Travis Lindemoen, founder of the recruitment platform Enjoy Mondays .

A buyout can also serve as an opportunity to take a career break, which you can use to simply take a break or to reskill.

“It offers a break to reassess your career goals and priorities,” Lindemoen said. “Use the time and resources to start a business or explore a dream career, relocate or travel, go back to school to enhance your skills or volunteer for meaningful causes.”

Taking a voluntary buyout offer might also be a smart move if you are nearing retirement.

“A buyout offer may provide a bridge to retirement or allow you to focus on part-time or consulting work,” said Paul Bramson, a professional training expert and founder of The Paul Bramson Companies . “Assess whether the buyout package aligns with your retirement goals and whether you have sufficient savings for retirement.”

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Why You Might Not Want To Take a Buyout Offer

Rejecting a buyout offer is a risk, as you may end up losing your job to a layoff anyway. But before you agree to voluntarily leave your job, it’s important to truly take stock of what this will mean for your life and your finances.

“The biggest disadvantage of taking a buyout is the loss of job security and the potential challenges that come with searching for a new position,” Miller said. “Additionally, if a company offering buyouts/going through layoffs are precipitants of economic challenges your industry is facing, it may be increasingly difficult to land another position in your industry or area of expertise. Also, when you get hired at a new organization, it’s not always a guarantee your compensation will be at the level it once was.”

If you don’t have sufficient savings, taking a buyout can be a big financial risk.

“You may deplete your savings or retirement funds sooner than planned, and the buyout may not provide sufficient financial support in the long term,” Bramson said.

In addition to loss of salary, it’s important to remember that you will also lose access to benefits like healthcare and retirement savings plans. Plus, there’s always a chance you will regret this decision for other reasons.

“You might miss your job or colleagues,” Lindemoen said.

And there will likely be an emotional toll.

“Leaving a job, whether voluntarily through a buyout offer or involuntarily through layoffs, can be emotionally challenging,” Bramson said.

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