Job loss is challenging at any age—but it can be particularly disruptive when it happens in your 50s or 60s. During this period, many individuals are still managing major financial responsibilities: covering mortgage payments, assisting children through higher education, or supporting aging family members. Replacing a lost job with one that offers comparable salary and benefits is often difficult, and as workforce reductions persist across industries, these mid-to-late career setbacks are becoming more frequent—and more serious.
Why It’s Such a Problem
When workers in their mid-50s to early 60s are laid off, the road to reemployment is often longer than it is for younger job seekers. According to the U.S. Bureau of Labor Statistics, those between 55 and 64 spend roughly 26 weeks on average looking for a new position—almost two months more than those in their late 20s or early 30s.
Transitioning into a different industry can also pose greater challenges for older adults, especially for those who didn’t leave their jobs voluntarily. As a result, some may find themselves withdrawing retirement funds earlier than planned or filing for Social Security benefits ahead of schedule—choices that can lead to reduced income down the line. They’re also missing out on additional contributions to retirement savings plans like 401(k)s or IRAs, which are especially valuable for those eligible to make catch-up contributions after age 50.
Why Finding a Job Takes Longer
Age bias in hiring, though illegal, still plays a role in many hiring decisions. Employers may wrongly assume that older candidates aren’t up to speed with new technologies or won’t commit long-term. In reality, many older professionals are motivated, experienced, and eager to remain in the workforce.
Still, experienced job seekers can face delays. Salary expectations may be higher—justifiably so—which can deter some companies from extending offers. Additionally, senior-level openings such as executive or director positions are less abundant compared to mid- or entry-level roles. To enhance their job prospects, older professionals can benefit from staying active on social media platforms like LinkedIn, participating in professional associations, and leveraging their existing networks.
Average Retirement Age
Being laid off later in your career can feel like a setback—especially as more Americans extend their working years. Since 1991, the average age of retirement has risen by roughly three years. Improved health, longer lifespans, and shifts toward less physically demanding work have all contributed to this shift.
At the same time, fewer workers now retire with traditional pensions. Instead, most rely on defined-contribution plans like 401(k)s. Confidence in retirement security has declined as a result. More people are also waiting to file for Social Security; over the past two decades, the average claiming age has climbed from 63 to 65. The incentive? For every year benefits are delayed between ages 62 and 70, monthly payments can increase by as much as 8%, according to the Social Security Administration.
Retirement Expectations Vs Reality
To strengthen their financial outlook, many older adults are choosing to remain in the workforce longer—whether by keeping their current jobs, shifting to part-time work, or freelancing. These more flexible options can provide supplemental income without the demands of a full-time position.
That said, these opportunities often favor those with specialized skills or years of experience. For many, the effort involved in securing short-term work may not feel worthwhile—especially if full retirement is approaching.
That’s why preparation is essential. If there’s a chance you may experience job loss later in your career, it’s wise to build your savings now. Need help evaluating your retirement strategy? We’re here to help. Guaranteed retirement income options (backed by the claims-paying ability of the carrier) may be worth considering. Contact us for more information.
Source: The Wall Street Journal (1), The Wall Street Journal (2)