I retired early,
because I wanted to, but there are many out there who were or will be forced to
retire, because of economic or personal reasons. Many do not have much control over most factors
that cause them to retire earlier than planned. Nonetheless, they can take some
steps while still employed to minimize the financial consequences of premature
retirement.
- Emergency funds: All workers should
have an emergency fund equalling at least three and preferably
six months of living expenses. Those who find themselves unexpectedly
out of a job can draw from this fund to pay bills and emergency
expenses while looking for new work. Having such a fund means
premature retirees might not have to tap into Social Security or
retirement funds right away and, if they do find work, perhaps not
until their planned retirement.
- Eliminate or reduce debt: Everyone
should keep debt to a minimum. It is difficult to take care of
day-to-day expenses and credit card or other debts when no money is
coming in.
- Update skills: Employers have
reservations about older workers’ flexibility, adaptability and
ability to learn new skills and approaches. Voluntarily engaging in
training, retraining, lectures, and education programs can help older
workers counter these reservations and enhance their value to the
business. That could work to their advantage when the employer is
determining whom to let go. It can also help workers acquire
skills that will aid them in a future job search.
- Network: While employed, workers
should nurture their job contacts as these can prove useful in the event
of a job search.
- Hone job-seeking skills: Looking for a
job today is very different from what it was many years ago. A good
strategy for older workers is to keep job-seeking skills up to date
by periodically applying and interviewing for jobs. This will put
them a step ahead if faced with an unexpected job search. They might
also stumble upon a great job opportunity they can’t resist.
Workplace
modifications some sites for my American friends:
The Americans with
Disabilities Act (ADA) requires employers to consider workplace
accommodations or modifications under certain circumstances.
Such changes might
make it possible for ill or disabled workers to shift to another
job with the same employer or to scale back work hours
rather than leave employment.
Action item: Before
retiring, workers should discuss these possibilities with the
employer.
Early Retirement
Extras for my American Friends
• Understanding
Waivers of Discrimination Claims in Employee Severance Agreements”
provides information and a check list on what to do when an employer offers
a waiver agreement. Find it at the Equal Employment Opportunity Commission
(EEOC) at www. eeoc.gov.
• Health Plans& Benefits: Continuation of Health Coverage— COBRA provides helpful
information on COBRA. Find it at U.S. Department of Labor website at
www.dol.gov. This website also has a useful “Frequently Asked Questions”
on COBRA.
•
Resources to help older people search for work may be available at Forty
Plus www.retirementjobs.com and
AARP (www.aarp.org/work).
• The U.S.
Department of Labor website provides a handy United States map that
enables visitors to click on a state to learn about its unemployment
benefits program. Find it at: www.servicelocator.org/OWSLinks.asp
• The Americans
with Disabilities Act website offers a wealth of information about work and
disability. Go to: www.ada.gov.
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