2/15/2013 10:15 PM ET|
Past 55 and jobless: What to do
Few have a pension to fall back on if employment ends sooner than planned. Here's what you need to know about unexpected retirement.
It was not all that long ago that people could hope to stay gainfully employed with a company for many years and perhaps even an entire career. Loyalty was a two-way street: Employees worked hard to complete the tasks at hand, and companies valued workers' individual contributions and experience. The number of years on the job was a plus, and seniority was a virtue.
Now job-hopping has become the norm and longevity at a single job a distant memory. It is likely that current workers will move through multiple jobs during a career. Sometimes a job change is the result of a personal decision to find something new or better. But many workers find themselves forced from their jobs into a market overpopulated with many other highly qualified individuals searching for their next gig. For older employees, a layoff or buyout can be especially challenging:
● Half of current retirees say they retired earlier than they originally planned, mainly due to health or disability issues, according to a 2012 Employee Benefit Research Institute study.
● In addition to health issues, seniors may find themselves without jobs due to economic issues beyond their control.
● The median length of unemployment has more than tripled for those older than 55 since the recession started. What was typically 10 weeks of unemployment before the recession had ballooned to 35 weeks by 2011.
● Increasing health care costs may cause companies to be reluctant to rehire older workers because they employers may assume older workers will be expensive to insure.
But you can recover from an unexpected early retirement. Here are a few ways to cope if you’re facing involuntary unemployment:
Try to save your job. Before you just accept a layoff, you may want to plead your case to your employer. Explain in detail the value you add to the company, the years of experience that have made you a model of efficiency, how you set an example for others and why it makes sense to keep you. Be specific with examples of just how you have made things better. Describe the cost of hiring and training a replacement and the risk of hiring the wrong person and losing months of productivity. Help to defuse the misconception that older workers are more expensive. However, the unfortunate reality is that this is an uphill battle if the decision has been implemented across the company and the wheels are already in motion.
Start your own business. Sometimes losing your job can be just the push needed to do something yourself. You can pursue a course you feel passionate about. Whether a short-term choice until you find something else or a new career, taking those first steps can be crucial. If you enjoy identifying and completing one project at a time you may want to look into contracting or consulting engagements that utilize your work experience. A home-based businesses can require a minimal initial investment and provide flexibility in hours without the hassle of commuting. Turn a hobby you enjoy into a money generator, whether you are an aspiring writer, crafter, musician, builder or blogger. Try to view this as not only an unexpected challenge but also an opportunity.
Volunteer. If you need to continue working but have few options available, you may want to consider volunteering at an organization you are interested in. Get in the door and build a reputation as a dedicated, energetic worker in the hopes of being in the right place at the right time when other opportunities arise.
Retire. Despite their best efforts, some people will find that the working world has few opportunities for them. Only a third of older workers displaced between 2007 and 2009 found full-time work by 2010, and often at reduced wages, according to a Government Accountability Office report. Many seniors want and need to work, but some simply can't find jobs. Unexpected early retirement may require significant cuts expenses and lifestyle in order to live on savings that must be tapped sooner than planned.
More from U.S. News & World Report:
VIDEO ON MSN MONEY
One of the most worthless articales about losing your position.
Despite what Pravda ( a.k.a. the U.S. Media says) the economy is still in recession.
What we need is a balanced federal budget, which in turn will lower all income groups federal income tax.
Also the states need to drop there tax rates by cutting there spending.
With lower income taxes, people will have more disposable income. What is disposable income...see below...
The amount of money that households have available for spending and saving after income taxes have been
Now once the general public has more disposable income to spend or invest in the economy, this will create
demand for products and services, whcih in-turn with higher demand firms will need to hire more workers to
With the current administration, which only pretends to be interested in creating wealth they (Obama & crew)
are interested in a Soviet style health care and economic system.
To the 51 million people who voted for President Obama, just wait until Obama care is fully implemented-which is
another way to tax Americans under the guise of "healthcare". I have not had health insurance since 2008.
And guess what - under Obama care I still will not have health care. To the above folks that voted for Obama-
you have not seen nothing yet as far as taxes under Obama care and the new income tax.
Just wait till you get the bill (ha, ha)....
One decent possibility is real estate. I am 54 and manage real estate brokerages and local developments. People like to work with their peers and if you have the holding power to get started and like working in a sales environment, this may be an option. I have enjoyed the industry for 27 years and it is certainly not age specific. There are many top producers around me in their 60's, 70's and surprising older.
Or maybe you could start a second career as an underpaid greeter or maybe even a security guard.
Face it: after 55 this systems just barely tolerates you and would like to rip you off if there's anything at all to get.
If this articles writer had a better grip on the facts, he would see how ridiculous it all is.
..Well, not a lot of options shared from the professional advisors. The one about `starting’ one’s own business is just empty rhetoric; operating and start-up capital is enormous...especially if a person is not working. There was one option not mentioned...With all the `extra’ time a person would have, take some yoga classes so you can bend over backwards and kiss your **** goodbye.
perhaps some legislation against this "ageism" behavior is warranted.
There are laws for all other groups that get discriminated against. This one is easy to prove :-)
Once again the younger folks are not thinking beyond the length of their noses ! why am I not surprised?
It would be in their best interest to keep these people on the job for as long as they can ...so to ensure they have sufficient funds in their much older years and not be a burden on the "youth".....financially.
their talent can be used in perhaps other functions in the organization....such as customer service. There sure is a lack of that today everywhere you go.
What an "edge" the organization can develop in the market! Let the public know you are promoting this philosophy of respect, appreciation and forward thinking.
An organization where young and mature come together to bring you their very best !!
it doesn't get better than that.
think about it for a minute....:-)
all in all, it's a come on. shameful.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.