What do you do if you are laid off close to your retirement date? What do you do if you find out that you’re being pushed out, that you’re being laid off, or maybe even that you’re being offered an early retirement package? The key phrase being, ‘close to your retirement date.’
This is happening all over the place today. The reason it’s happening is due to the pandemic and the economy struggling compared to the way it was a year or two ago. A lot of companies are having to cut back, and if you are close to your retirement date you’ve got some tough decisions to make. Here, we’re going to break it down.
Determine Your Exact (Current) Living Expenses
First, you’ve got to determine your living expenses, or re-evaluate your living expenses because for some of you, you’re spending a lot less money than you were a few years back. Maybe you’ve got children that have finished college. Maybe you’ve got other demands you’ve paid off, like a mortgage. Just make sure to determine your exact, current living expenses.
Understand Unemployment Benefits
Next, be sure to understand how unemployment benefits work. There may be more unemployment than you think there is. And, keep in mind, unemployment is not a welfare program. Unemployment is an insurance program. You and your employer have paid into it. There’s nothing wrong with collecting unemployment.
Know Your Health Insurance Options
You’ve got to know exactly how health insurance works. For some of you, you can continue coverage through your employer. That’s called COBRA. Some of you might want to go out and buy your own insurance or get it through the exchange. Health insurance through the exchange may be much more affordable and because it is dependent on your income, your premiums might be lower if you get laid off, have no income and are living off your savings.
Seek a Professional Opinion
Last, but not least, seek a professional opinion. There are great financial firms out there that you can get advice from. Most financial advisors will act in your best interest, in my experience. You should seek a professional opinion to help make sure that you’re looking at things the right way for your unique financial situation.
Get Your FREE Copy of the 10-Step Layoff Survival Guide
This guide will go through 10 steps that may help you make some of these decisions. A couple things that the guide may help you with:
- What to do about your health insurance
- How the layoff may affect your retirement plan
- What do you do with your investments, your 401(k), etc.