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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.<\/p>\n
But what happens if, shortly after you announce your retirement, your employer decides to show you the door ahead of your official end date?<\/p>\n
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.<\/p>\n
Surprising as it may sound, your employer is not typically under any legal obligation to let you keep working once you\u2019ve announced your plans to retire.<\/p>\n
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 \u2014 no \u201cjust cause\u201d required.<\/p>\n
But you may have some legal recourse if you have evidence that your employer fired you to stop your pension from \u201cvesting\u201d 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.<\/p>\n
You have a few options if you’re terminated before your official retirement date.<\/p>\n
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.<\/p>\n
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.<\/p>\n
If you\u2019re unsure which path to take amid today\u2019s market uncertainty, it might be a good time to connect with a financial advisor<\/a> through Advisor.com.<\/p>\n This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.<\/p>\n 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<\/a> with no obligation to hire.<\/p>\n You can view advisor profiles, read past client reviews, and schedule an initial consultation for free<\/a> with no obligation to hire.<\/p>\n 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.<\/p>\n Read more: Rich, young Americans are ditching stocks \u2014 here are the alternative assets they’re banking on instead<\/a><\/p>\n 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.<\/p>\n That said, doing so may be expensive as you\u2019d 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.<\/p>\n For those under the age of 65, U65 Health Insurance<\/a> lets you compare policies offered by reputable providers near you for free.<\/p>\n You can shop around and compare policy premium rates and features from leading insurers like Anthem, Oscar Health and Aetna within minutes.<\/p>\n Get started and find the right coverage for you in under five minutes.<\/p>\n If you\u2019re already over the age of 65, consider signing up for Medicare if you haven\u2019t done so already. Keep in mind that there are some big changes coming to Medicare in 2025 that you may want to look into.<\/p>\n By being proactive, you can hopefully ensure that your employer’s decision to force your early departure doesn’t derail your retirement goals.<\/p>\n 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.<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n 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<\/a>, making it an option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n