What To Do If You're Pushed Out Of Work At 60
Too young to retire, too old to consider a whole new career. What now?
You’ve done everything right. You’ve bumped up your savings and massaged your stock allocations. You’ve even scoped out properties in that cute little beach town you like so much, a great place to buy a vacation home.
Then, wham! Your boss calls you in. The company’s downsizing-reorganizing-exploring strategic options-blah-blah-blah. Whatever they call it, you’re being forced out at what is probably the worst time possible. What do you do next?
As hard as it may be, try to stay positive. Don’t despair. “How many times has something happened to you that wasn’t part of the plan? But a year later, you were back to enjoying life,” says Tim Maurer, an Atlanta financial adviser.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Look at your retirement goals, such as family, travel and hobbies, and think about how you can achieve them on a reduced income. “The numbers might be different, but you can still reach the same type of goals,” says Maurer.
First, review whatever severance package is available. What benefits are being offered? Take as much time as you can. Consult your financial adviser and a lawyer. “You might be owed severance pay, stock options or outstanding bonuses and commissions,” says Karen Birr, a financial adviser in Minneapolis. “These might be enough to bridge the earnings gap until retirement.” Some states allow you to receive both severance pay and unemployment benefits, while others do not.
Most importantly, check your health insurance. Are you eligible for COBRA? Can you get on your spouse’s insurance? Can you get another job — just something that will get you health benefits? Finally, you can get a quote for an Affordable Care Act plan — expensive, but premiums are capped based on your income.
Above all, recognize that your world has changed and you have to change with it. “Step back from any dreams and evaluate where you stand with savings and future retirement income,” cautions David John of AARP in Washington, D.C. “If this is it, what can you truly afford?”
Note: This item first appeared in Kiplinger’s Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Six of the Worst Assets to Inherit
inheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
By David Rodeck Published
-
Why Has Your Car Insurance Gone Up? (And What You Can Do About It)
Inflation, technology and bad drivers have jacked up everybody’s insurance rates, but there are a few things you can do to possibly lower yours.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published
-
Ease on Down the Road to Retirement
Want to keep working, just not as hard? A phased retirement may just be the answer.
By Kimberly Lankford Published
-
10 Things You Should Know About Selling Your Home to Downsize in Retirement
What to know about selling your home in order to downsize in your retired years.
By Laura Vecsey Published
-
Why So Many Men are Bad at Retirement
Older men today came of age amid the social upheavals of the 1960s and ’70s, but their formative years were deeply planted in the traditional world of segregation and sexual stereotyping.
By Dawn Fallik Published
-
What's Going on with Social Security — and How Concerned Should You Be?
A comprehensive look at what's going on with Social Security.
By David Cay Johnston Last updated
-
Retirees are Getting Into Camping — Here's How You Can, Too
A guide to camping for retirees, as older Americans are increasingly trying out the unique time outdoors.
By Yvette C. Hammett Published
-
Five Strategies for Deciding When to File For Social Security
When to file for social security? Applying at age 70 maximizes your monthly payout, but claiming early could provide advantages that can’t be quantified on a spreadsheet.
By Sandra Block Published
-
How to Pay for Long-Term Care
Most people will need long-term care at some point, but insurance is pricey. Here’s a guide to covering the expenses.
By Elaine Silvestrini Published
-
How to Have a Happy Retirement
Want a happy retirement? These eight tips for finding your retirement bliss are backed by solid evidence.
By Jacob Schroeder Published