I’m 63 years old, worked hard my entire life, and I just got fired after announcing my retirement. Is that even legal — and what are my options from here?
Photo: seventyfourimages/Envato
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Announcing your retirement a few months in advance is often considered a courtesy to your company. Not only does it give your employer time to manage the transition and hire a replacement, but it also gives you plenty of time to get your personal finances in order.
But what happens if, shortly after you announce your retirement, your employer decides to show you the door ahead of your official end date?
If you’ve already announced your retirement, it can be a frustrating and disorienting experience to suddenly get fired after years of service. It’s also natural to wonder if your employer is breaking the law.
Surprising as it may sound, your employer is not typically under any legal obligation to let you keep working once you’ve announced your plans to retire.
That’s because most states have at-will employment laws. An at-will employee can be fired at any time for any reason and without warning — no “just cause” required.
But you may have some legal recourse if you have evidence that your employer fired you to stop your pension from “vesting” or as a direct result of age discrimination. These would violate the Age Discrimination in Employment Act (ADEA) and Employee Retirement Income Security Act (ERISA), and you may have a case on your hands.
You have a few options if you’re terminated before your official retirement date.
Your company may offer severance pay as a way to get you to waive your right to file certain lawsuits against your former employer. Aim to negotiate the fairest possible severance package, including asking for your employer to continue subsidizing your health coverage.
To know where you stand, you may want to consider talking with a financial advisor to understand how being let go will impact your retirement plans. And if you have the finances to support an early retirement, a financial advisor can help you plan for your golden years.
If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Make sure to budget for health care expenses in case you decide to retire early. An average 65-year-old is estimated to need roughly $165,000 to cover health care expenses through retirement, according to the 2024 Fidelity Retiree Health Care Cost Estimate.
If your employer isn’t subsidizing health insurance, you may be able to keep your employer-based coverage under the federal law known as COBRA, for a period of time.
That said, doing so may be expensive as you’d have to fork over money for full premiums without your employer contributing to monthly payments. You can look to reduce this bill by opting for private third-party insurance.
For those under the age of 65, U65 Health Insurance lets you compare policies offered by reputable providers near you for free.
You can shop around and compare policy premium rates and features from leading insurers like Anthem, Oscar Health and Aetna within minutes.
Get started and find the right coverage for you in under five minutes.
If you’re already over the age of 65, consider signing up for Medicare if you haven’t done so already. Keep in mind that there are some big changes coming to Medicare in 2025 that you may want to look into.
By being proactive, you can hopefully ensure that your employer’s decision to force your early departure doesn’t derail your retirement goals.
Creating a financial buffer can help you weather this challenging time without compromising your lifestyle or taking on additional debt. You may want to invest in safe-haven assets like gold, which tends to deliver stable returns over time, while hedging your portfolio against inflation and recession risks.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
But make sure not to keep all your eggs in one basket. If all your money is tied up in stocks or precious metals, an emergency expense might force a withdrawal during market downturns or drive you into debt.
If you don’t have a consistent source of income, financial experts recommend keeping at least 12 to 18 months worth of expenses in your emergency fund.
“While saving adequately for retirement is crucial, an emergency fund ensures income stability no matter what comes — health issues, home repairs or market drops,” said Marty Burbank, founder of OC Elder Law.
“Retirees can’t predict future costs or market changes, but an emergency fund helps ensure financial security to fully enjoy retirement,” Burbank added further.
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Hundreds of children have been poisoned in Indonesia after consuming free school meals, pushing some parents to avoid a flagship scheme intended to eliminate hunger. In the largest mass-poisoning since the scheme launched in January, 400 people fell ill in Bengkulu, a province on the south-west coast of Sumatra island, with children as young as
Shannen HeadleyBBC News, West Midlands Birmingham City Council Birmingham City Council said it had not approved or endorsed the event A planned nudist gathering at a Birmingham park has been cancelled over safety concerns. The West Midlands Naturist Association planned its naked walk to begin at Queens Park, in Harborne, on Saturday. But the event
As Donald Trump rightly observed on August 22nd, “It is very hard, if not impossible, to win a war without attacking an invader’s country.” Mr Trump may have intended to point to another reason why Ukraine lacks “the cards” to win, but for two years, Ukraine has been carrying out successful attacks on oil refineries
“Before it was dangerous if you were static,” he said, noting that artillery usually hits buildings. “Now, it’s dangerous to be moving, because drones hit moving targets.” Three-and-a-half years into the war, the conflict is growing deadlier for civilians, with explosive drones reshaping life in front-line towns and villages just as they have on the
SEOUL—When Kim Jong Un stepped off his bulletproof train in Beijing for this week’s extravagant commemoration of China’s victory in World War II, a smiling woman dressed in a demure navy pantsuit stood close behind the North Korean leader as he greeted China’s foreign minister. PREMIUM North Korean leader Kim Jong Un and his daughter
Sen. John Kennedy brought some sci-fi theatrics to Capitol Hill to issue a bizarre warning that Americans risk turning into the monster from Alien if they keep eating shrimp imported from Indonesia. The MAGA Republican showed off a photo of the film’s scary “chestburster” scene during a Senate hearing where he railed against Walmart for
Paul KirbyEurope digital editor Anadolu via Getty Images Ukraine is looking for security guarantees as part of a deal to end the 40-month full-scale Russian war The leaders of about 30 Western countries are taking part in a summit in Paris with Ukraine’s Volodymyr Zelensky, with the aim of giving Kyiv security assurances if a
Bitcoin has been a huge winner and the stage could be set for more gains. Bitcoin (BTC -0.55%) was launched all the way back at the beginning of 2009 and has gone on to have a transformative impact on the financial world. In addition to laying the foundations for the broader cryptocurrency industry and lighting
