From Kiplinger · · 1m 40s
Losing Your Job in Your 50s or 60s
Unexpected job loss in your 50s or 60s can derail retirement plans. Here's how to safeguard your savings.
In brief
Unexpected job loss in your 50s or 60s can derail retirement plans. Here's how to safeguard your savings. Losing a job in your 50s or 60s can disrupt retirement planning; building flexibility in your retirement plan helps avoid early withdrawals or claiming benefits prematurely. Originally reported by Kiplinger.
Retirement planning starts with an age
For many people, retirement planning begins with a target age like 62 or 65, but unexpected job loss can derail this timeline.
August jobs report shows mixed signals
The August jobs report revealed a resilient labor market with a steady unemployment rate of 4.1%, but the information industry lost 23,000 jobs.
ADP National Employment Report
The ADP National Employment Report showed private payrolls rose by only 38,000 in August, less than the 46,000 added in July and below the 47,000 economists expected.
Job loss disrupts retirement planning
Losing income during your 50s or 60s can dramatically disrupt years of retirement planning and force early financial decisions.
Build flexibility into retirement plan
The smart move is to build flexibility into your retirement plan to prevent emotional decisions like draining accounts or claiming benefits early.
Get financial life in order
Review fixed and discretionary expenses, available savings, and income sources to determine how long you could maintain your lifestyle without working.
Healthcare coverage matters
Losing health coverage before Medicare eligibility may require COBRA with higher premiums that could drain savings.
Stress-test retirement plan
Run scenarios to understand how your retirement plan would be impacted if you stopped working now or retired earlier than planned.
Stay connected professionally
Maintain required licenses and professional networks to keep options open if you lose your job.
The bottom line
Losing a job in your 50s or 60s can disrupt retirement planning; building flexibility in your retirement plan helps avoid early withdrawals or claiming benefits prematurely.
