Losing a job is difficult at any stage of life—but when it happens later in your career, the impact can be especially challenging. Many workers in their fifties are still paying mortgages, helping kids through college, or supporting aging parents. Finding a new role with similar pay and benefits can be tough, and as layoffs continue in both the public and private sectors, the concern is growing.
Why It’s Such a Problem
For employees in their 50s and early 60s, a layoff often leads to longer stretches of unemployment. According to the U.S. Bureau of Labor Statistics, job seekers aged 55 to 64 spend an average of 26 weeks looking for work—about seven weeks longer than those aged 25 to 34.
Mid- and late-career layoffs also make career changes harder. Unlike those who leave a job voluntarily, many struggle to switch industries successfully. Some turn to savings or claim Social Security earlier than planned, which can permanently reduce retirement income. During this time, they also miss out on contributing to retirement accounts—particularly “catch-up” contributions available to those over 50.
Why Finding a Job Takes Longer
Age discrimination still exists. Some employers wrongly assume older workers resist new technologies or plan to retire soon after hiring. In truth, many professionals want—and financially need—to work into their 60s or beyond. However, senior-level roles like director or vice president are less common than entry- or mid-level positions.
Older job seekers can boost their chances by tapping into professional networks, staying active in industry organizations, and maintaining a strong presence on social media sites like LinkedIn. Salary expectations can also be a sticking point—experienced workers may seek higher pay, while employers may be hesitant to offer it.
Average Retirement Age
Being laid off in your fifties can feel like falling behind, especially as Americans work longer than ever. Since 1991, the average retirement age has risen by about three years, thanks to longer life expectancies, better health, and more desk-based work.
The shift from traditional pensions to 401(k)-style plans has left many individuals feeling less financially secure, as evidenced by the average Social Security claiming age increasing from 63 to 65 over the past 20 years. Delaying benefits generally pays off—each year you wait between 62 and 70 increases monthly payments by up to 8%, according to the Social Security Administration.
Retirement Expectations Vs Reality
Working longer—whether in your current role or in a new one—is a common strategy for improving retirement readiness. Some choose part-time or freelance work for flexibility while staying active. However, these opportunities often favor those with niche skills, and some people decide a job search isn’t worth the effort if they only plan to work a few more years.
This is why early planning matters. Knowing that a late-career layoff is possible makes a strong case for building savings sooner. If you’d like to explore ways to create a reliable source of retirement income, we can help. Options that offer guaranteed income for life (backed by the claims-paying ability of the carrier) may be worth considering. Contact us to learn more.
Source: The Wall Street Journal (1), The Wall Street Journal (2)