I’d like to start on new video series today on strategies for folks who get laid off before they are ready to retire.
So, a recent study conducted by researchers at ProPublica and the Urban Institute found that more than 50% of workers “experience an employer-related involuntary job separation after age 50.” The workers laid off later in life had an extended period out of the work force and, if they were able to find a new job, it was at a much lower income. The research also found that only 16% of the people in the study were still working at age 65.
Some may attribute this phenomenon to the prevalence of ageism in our society. Others may contend that it’s just a practical business decision for companies to save money or attract new talent. Regardless of the rationale, the repercussions for folks who are being let go from a job late in their career can be disastrous financially. Most investors plan to contribute meaningfully to their savings as they simultaneously hit their peak earning years and no longer have the expenses that come with raising children. Dipping into one’s savings five to ten years earlier than planned, instead of continuing to save and invest, can lead to very challenging years ahead.
The best approach for this type of undoubtedly frustrating situation is to be proactive. Procrastination can further exacerbate the negative impact on one’s finances for years to come. In the coming days, I will offer ten suggestions of planning items to consider after one is laid off late in a career: