Laid off at 60: what to do next
You are too young to retire and it feels like you're too old to hire. Both feelings are common. Here is what to do, in order.
This is general information, not legal or financial advice. Links go to the official sources.
This week
1. Don't sign the severance agreement the day you get it. If you're 40 or older and the agreement asks you to give up the right to sue for age discrimination, federal law gives you at least 21 days to consider it, and 45 days in a group layoff. You also get 7 days to change your mind after signing. Source: eeoc.gov. Paying an employment lawyer for one hour to read it is usually worth it.
2. File for unemployment. File in the state where you worked, in your first week. Don't wait for severance to run out. Each state handles severance differently, and the state office will sort it out. Start at careeronestop.org.
3. Sort out health insurance. You have two main choices until Medicare starts at 65.
- COBRA keeps your old plan, usually for up to 18 months, if your employer had 20 or more workers. You pay the full premium.
- A marketplace plan at healthcare.gov. Losing job coverage gives you 60 days to enroll. Your lower income may qualify you for help with the premium.
Price both before you pick.
This month
4. Know your money rules before you touch anything.
- 401(k): if you leave an employer in or after the year you turn 55, you can usually take money from that employer's plan without the 10% early penalty. Income tax still applies. This does not cover IRAs. Source: irs.gov.
- Social Security: the earliest you can claim is 62. Claiming early lowers your monthly check for life. Source: ssa.gov.
If you're 55 to 59, Social Security is still years away, so the 401(k) rule matters most.
5. Decide what you want next. The same job, a step up, or something lighter. Say it out loud to someone. It decides which jobs you look at.
Then the job search
People in this spot say the same things. They sent hundreds of applications and heard nothing. They were told "impressive resume" and never got a call.
Three things cause most of that, and all three can be fixed.
- The resume lists everything and reads like the year you last wrote it. See resume for older workers.
- The applications go to the wrong jobs. Ten that fit beat a hundred that don't.
- The applications go through "quick apply." Apply on the employer's own site.
About one in four job seekers over 55 has been looking for six months or more. Starting in week two instead of month four helps.
Free help
- American Job Centers: careeronestop.org
- AARP Foundation BACK TO WORK 50+: free coaching for people over 50
- Your public library
If you want someone to do the resume with you
You talk through your work on your phone, and your resume writes itself on screen as you go. You see it before you pay. Then we send you openings you'd be a real candidate for, by email or text, when they come up.