Losing a job is always hard—but it can be especially stressful when it happens in your 50s or 60s. At this stage in life, many people are balancing major financial responsibilities like paying a mortgage, helping kids through college, or caring for aging relatives. And finding a new job that offers similar pay and benefits isn’t always easy. As layoffs continue across both the private and public sectors, this issue is becoming more common—and more concerning.
Why It’s Such a Challenge
When people in their 50s and early 60s lose their jobs, it often takes longer to find new work. According to the U.S. Bureau of Labor Statistics, job seekers aged 55 to 64 spend about 26 weeks on average looking for a new position. That’s nearly two months longer than job seekers in their late 20s and early 30s.
Older workers who are laid off also face more difficulty switching to a new industry—especially compared to those who leave jobs voluntarily. As a result, some may be forced to dip into retirement savings early or start collecting Social Security ahead of schedule. Doing so can lower their future retirement income. Plus, they miss out on contributing to retirement accounts like 401(k)s or IRAs—particularly important for those over 50 who can make extra “catch-up” contributions.
Why Finding a Job Takes Longer
Unfortunately, age discrimination still exists in hiring. Some employers mistakenly believe that older candidates aren’t as tech-savvy or won’t stay in the job for long. But the reality is that many older professionals are both willing and financially motivated to keep working well into their 60s and beyond.
Even so, it often takes longer for them to find new roles. Salary expectations can also be a sticking point—experienced workers often expect (and deserve) higher pay, which employers may hesitate to offer.
There’s another challenge: senior-level jobs—like manager, director, or executive roles—are less common than entry- or mid-level ones. To improve their chances, older job seekers should tap into their professional networks, stay engaged with industry groups, and maintain a strong presence on platforms like LinkedIn.
Retirement Is Happening Later
Getting laid off in your fifties can feel like you’re falling behind—especially as more people work longer than ever before. Since 1991, the average retirement age has increased by approximately three years. People are living longer, staying healthier, and working in less physically demanding jobs, all of which contribute to this trend.
At the same time, traditional pensions have primarily been replaced by retirement plans like 401(k)s, which place more responsibility on the individual. This shift has made many people feel less secure about retirement. More Americans are also waiting to claim Social Security, rising from age 63 to 65 on average over the past two decades. Waiting longer has its benefits: the Social Security Administration says that each year you delay benefits (between age 62 and 70) can increase your monthly income by up to 8%.
When Retirement Doesn’t Go as Planned
To improve financial security, many people choose to work longer—either by staying in their current job or finding part-time or freelance work. This flexible approach can offer income without the demands of full-time employment.
However, these roles are often only available to those with specific skills or deep experience. Some may decide that searching for a short-term job just isn’t worth the effort, especially if they only plan to work a few more years.
That’s why preparing early is so important. If there’s a chance you could face job loss later in life, it makes sense to build up your savings as much as possible now. Want help figuring out how to plan and save for retirement? We’re here to guide you. Guaranteed retirement income options (backed by the claims-paying ability of the carrier) may be worth exploring. Reach out today to learn more.
Source: The Wall Street Journal (1), The Wall Street Journal (2)