Because of recent economic conditions, many business have fallen into financial trouble. A simple way for a business to save money is to maintain fewer employees, but because of employment contracts they cannot simply release a number of employees. To curb this problem, employers sometimes offer voluntary severance packages. This is an agreement between the employer and employee that releases the employee in exchange for various modes of compensation. Depending on the organization and the degree of financial struggle, these packages may be favorable to employees or not at all. They are usually more advantageous for individuals nearing the age of retirement.