In 2015 approximately 160,000 people between the ages of 55 and 64 were laid off from their jobs. Permanently. At this stage in their lives, many older workers are trying to pay off mortgages, lines of credit and credit cards before they reach retirement. Many of these workers feel too young to retire and they also have to find a way to make up for or manage the loss of income. Looking for a new job can be difficult. Many employers don’t want to hire those who are over 50. Not because they aren’t good workers but because they usually come at a higher cost.
How can you manage once you’ve been laid off?
- Go over your finances. At this age, most of us have some type of financial plan in place whether we have money saved up or not. The big question is how long can you go without a pay cheque coming in? What can you cut back on and how much money do you really have to make to keep yourself afloat?
- This is the time to simplify your life. For those who own their own home, think of selling it now rather than waiting until your official retirement age. Drop all of the extras such as restaurant meals, clubs you belong to that come with a hefty fee and get rid of that extra car if you have two.
- Develop a strategy. Maybe this is the time to look for part-time work while starting your own business. Create a business plan and sign up for business courses at your local college.
Most of all, don’t panic! Yes, your ideal retirement may be out of the picture. You may have to work for more years than you had planned on working. Try to prepare for all possible outcomes and live on as small an income as you can in the meantime. For more information on what to do if you are laid off, click here.