I’m 63, just announced my retirement and got fired. Is that allowed, and what should I do now?
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It is generally considered a courtesy to your company to announce your retirement several months in advance. Not only will this give your employer time to manage the transition and hire a new one, but it will also give you plenty of time to get your personal finances in order.
So what happens if, shortly after announcing your retirement, your employer decides to show you the door before your official end date?
If you have already announced your retirement, being suddenly fired after years of service can be a frustrating and confusing experience. It’s also natural to wonder whether your employer is breaking the law.
As surprising as it may sound, your employer has no legal obligation to allow you to continue working after you announce that you plan to retire.
An AARP analysis of data examined by the Urban Institute and ProPublica from the Health and Retirement Study (HRS) report found that 13% of older workers entered retirement unexpectedly; researchers suggest that employees were likely forced out of their jobs (1).
This is because most states have at-will employment laws. An at-will employee may be terminated at any time, for any reason and without warning; There is no need for “just cause”.
However, if you have evidence that your employer dismissed you to prevent your pension being ‘vested’ or as a direct result of age-based discrimination, you may have legal recourse. These violate the Age Discrimination in Employment Act (ADEA) and the Employee Retirement Income Security Act (ERISA), and you may have a lawsuit before you.
If you are terminated before your official retirement date, you have several options.
Your company may offer severance pay as a way to get you to waive your right to bring certain lawsuits against your former employer. Aim to negotiate the fairest severance package possible, including asking your employer to continue supporting your health insurance. Otherwise, you may have to get private health insurance to close the employment gap.
Another option is to apply for continuation of health insurance under the Consolidated Omnibus Budget Reconciliation Act (COBRA) (2). However, COBRA coverage is only available to group health plans with at least 20 employees. Additionally, those who qualify may be required to pay the full premium for coverage up to 102% of the plan cost.
The biggest advantage here is that you keep your health plan, but the price tag can be a big drawback depending on your financial situation.
To know where you stand, you may consider speaking with a financial advisor to understand how a layoff will affect your retirement plans. If you have the finances to support early retirement, a financial advisor can help you plan for your golden years.
If you’re not sure which path to take in the face of today’s market uncertainty, this might be a good time. connect with a financial advisor via Advisor.com.
This online platform connects you with experienced financial advisors who can help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your financial situation; the platform will match you with up to three experienced financial professionals. You can view their profiles, read past customer reviews, and Book a free initial consultation There is no obligation to hire.
As you approach retirement, every dollar becomes more important.
Between rising healthcare costs, economic uncertainty, and living on a fixed income, it can be difficult to ensure your nest egg lasts.
there AARP — a trusted organization for many older Americans — comes into play. You can get discounts on almost everything, from prescriptions to dental plans to travel to entertainment to insurance.
Even better, AARP members have access to guides that can help you Get the most out of Social Securitychoose the right Medicare plan and unlock other government benefits; potentially saving you thousands.
By being proactive, you hope your employer’s decision to force you to leave early doesn’t derail your retirement goals.
“You may not have 40 years left, but you have today. And that’s enough to start turning the ship around,” noted financial guru Dave Ramsey told Kiplinger.com (2).
Creating a financial buffer can help you get through this challenging period without compromising your lifestyle or taking on additional debt. While protecting your portfolio against inflation and recession risks, you may want to invest in safe-haven assets such as gold, which tend to provide stable returns over time.
One way to invest in gold, which can also provide significant tax advantages, is to open a gold IRA. American Hartford Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account; It combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to potentially hedge their retirement funds against economic uncertainty.
Even better, you can roll over your existing 401(k) or IRA accounts to a gold IRA for free, often with up to three years of free storage, maintenance, and insurance. To learn more free 2025 information guide investing in precious metals.
But be careful not to keep all your eggs in one basket. If all of your money is tied up in stocks or precious metals, an urgent expense could force you to withdraw your money during a market downturn or push you into debt.
If you don’t have a consistent source of income, financial experts like Ramsey recommend keeping at least 12 to 18 months’ worth of expenses in your emergency fund.
According to Marty Burbank, founder of OC Elder Law, “While saving adequate amounts for retirement is crucial, an emergency fund ensures income stability no matter what—health issues, home repairs, or market downturns” (4).
“Retirees cannot predict future costs or market changes, but an emergency fund helps ensure financial security to fully enjoy retirement.”
Keeping your emergency fund in a high-yield savings account can help ensure your money remains accessible while earning interest.
For example, you can get up to 3.90% APY on your emergency fund (3.25% base APY and 0.65% increase in the first three months). Wealth Front Cash Account That’s roughly 10 times the national deposit savings rate, according to a January report from the FDIC through program banks.
With no minimum balance or account fees, as well as 24/7 withdrawals and free domestic bank transfers, you can ensure your money is always accessible. Plus, Wealthfront Cash Account Balances up to $8 million are insured by the FDIC through program banks.
