The Bird’s Eye View:
Have you been laid off close to retirement, or are you worried that might happen? Scott Dougan shares 10 steps to help you decide your next move.
On this episode of Your Retirement Elevated Podcast, Scott Dougan talks about how to handle a layoff if you’re close to retirement. Scott has a 10-step process you can follow.
Keep calm and take it one step at a time
Whatever you do, don’t freak out. A layoff can be scary, but you have options.
“I think the biggest thing you can do is take a deep breath and follow a process to make sure you know what your options are and make sure you’re making decisions that are fact-based and logical,” said Scott.
Determine your living expenses
When a layoff strikes, you need to know the facts. Begin by gathering all of your financial information. This baseline will help you determine if you need to land another job, or if you even need to bother.
“Sit down and figure out, what does it take for you to survive?” said Scott. “Unfortunately, most people don’t have a good idea of what it really costs to take care of their lifestyle.”
Create an inventory of your resources
Create an inventory of the assets you have available to help you meet your baseline expenses. Make sure to include savings, checking, 401K, all other investment accounts and any additional assets such as real estate or royalties.
Add in severance pay
Many employers do not offer severance pay, but it’s usually outlined in an employment contract, if you have one. Severance packages usually include compensation equal to a stipulated length of service typically measured in weeks or months. This payment could potentially provide, depending on your circumstances, six to 12 months of income to meet baseline expenses while you figure out your next move.
Scott also shares how to:
- Understand how unemployment benefits work
- Learn about your health insurance options
- Get a new social security estimate
- Consider a lump-sum payment
- Determine if you want to go back to work
- Seek a professional opinion
For more information, check out this informative PDF.
3:45 – Keep calm and take it one step at a time
4:36 – Determine your living expenses
6:42 – Create an inventory of your resources
8:28 – Add in severance pay
9:51 – Understand how unemployment benefits work
10:57 – Learn about your health insurance options
13:18 – Get a new social security estimate
13:54 – Consider a lump sum payment
15:52 – Determine if you want to go back to work
17:28 – Seek a professional opinion
Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.
Scott Dougan, RFC, Investment Advisor – Contact