I’d like to continue the series on strategies for folks who get laid off before they are ready to retire.
Get health coverage: After lost income, one of the biggest concerns for workers that lose their job is the loss of their health insurance. If you are already 65, you can enroll in Medicare. If you are younger than 65, paying for COBRA can allow you to retain your old health plan. However, individuals may be required to pay the entire premium for coverage, up to 102% of the cost to the plan. Alternatively, buying a new plan on the open market is also an option.
Be mindful that a Health Savings Account (HSA) is owned by you, not your employer. Therefore, you can continue to use it for qualified expenses even after getting laid off. This will be helpful for any medical expenses that arise while between jobs.