"Success isn't final, failure isn't fatal, it's the courage to continue that counts "
- Winston Churchill
A 2018 study conducted by the ProPublica and the Urban Institute found that more than 50% of workers “experience an employer-related involuntary job separation after age 50.” That's a staggering statistic and it proves that ageism continues to be a serious issue in the workplace.
The years leading up to retirement are often a critical time for midlife professionals because they are the peak earning years and the prime saving years for boosting retirement income.
Consequently, being laid off in your 50s and 60s can significantly impact retirement savings as workers in this age cohort typically experience extended periods of joblessness.
When they do find a new job - it's often at a much lower income than the job they lost.
The study also found that only 16% of the people in the study were still working at age 65. As the risk is fairly high that those in their 50s and 60s - it's more of a matter of when and not if you will lose your job.
Below is a list of planning items to consider should a lay off occur late in your career:
There is no doubt that losing your job 50s and 60s is difficult, it can give you the incentive to get your finances in order by doing things like reviewing your budget, reducing your expenses, and evaluating your insurance coverages are all excellent ways to prepare financially for you life after work. Outside your finances you'll also want to consider how you'll spend your time after leaving your job and trying out entrepreneurship is one ways to do something fulfilling by helping others and growing your income.
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