What’s it like getting laid off after 50
- Said Israilov
- Jul 27, 2025
- 6 min read
Updated: Aug 4, 2025
We hope you’re having a wonderful weekend!
This weekend's write-up isn't just about retirement; it's about who gets to decide when it begins. For a startling number of Americans, that choice isn't their own.
This isn't meant to scare you (well, maybe a little), but to serve as a fair warning. The risk of an unexpected layoff in your 50s or 60s can derail even the most carefully crafted retirement plan. This reality is the number one reason we urge clients to shift their perspective: the goal isn't just hitting a magic number by age 65, but building a solid financial foundation by your early 50s.
The mindset we want to reinforce is simple: Aim to be financially strong by 50, not at 65. As you'll see from the data and personal stories in this weekend's featured WSJ article, preparing for the unexpected is the key to staying in control before the market decides you're no longer needed.
If you’re in your early 30s, you have about 20 productive working years left to build up your retirement nest egg. If you’re in your early 40s, keep in mind you may only have about a decade before the challenges older workers face start becoming your reality, as outlined in this weekend’s featured WSJ article: Here’s What a Late-Career Layoff Looks Like in America.
The WSJ breaks it down in five charts showing what happens when Americans face layoffs in their 50s and 60s.
Late career layoffs are common, and older workers who are laid off often struggle to replace lost income or change career fields.
Older workers take longer to find new jobs due to age bias, fewer senior roles, and pay mismatches. Many stay competitive by networking, staying active in professional groups, and maintaining a social media presence.
People laid off in their 50s may feel behind as more Americans work longer. Since 1991, the average retirement age has risen by about three years. Delaying Social Security benefits has also become more common, which helps boost retirement income.
Many older Americans work jobs without retirement or health benefits in their 50s and 60s. Some choose this path for flexibility, while others have no better options. Missing out on benefits often leads to about 25 percent less retirement income.
Working longer or taking on flexible roles after retirement can help improve financial security, but these jobs are often limited to people with specialized skills. That uncertainty is a strong reason to save more early in your career, since retiring on your own terms is not always guaranteed.
Don’t wait to be reminded you’re replaceable
No one wants to think they will be the one left behind, but age bias and the way companies evolve are very real. Preparing for retirement in your 30s and 40s is not about quitting early. It is about staying in control before the market decides you are no longer needed.
From the comments section
Below are selected reader comments from the WSJ article. Though anecdotal, they reflect the difficult reality many older Americans face when navigating the job market in their later years.
Key Takeaways from the Comments:
Financial self-reliance is non-negotiable. The most consistent theme is the urgent need to save aggressively, live below your means, and pay down debt to gain financial independence, as you cannot rely on an employer for long-term security.
Late-career job loss is often involuntary and unforgiving. Many comments reflect a stark reality of age discrimination, difficulty in finding comparable work and pay, and the feeling of being pushed out before they were ready. The idea of a "graceful exit" is presented as a dangerous assumption.
Adaptability is crucial for navigating the unexpected. Whether it's finding a more fulfilling career, starting a business, or downshifting to a flexible part-time role, being financially and professionally prepared allows for resilience and the ability to pivot after a late-stage layoff.
Mark Brayer: Shares a personal story of being laid off twice after 50. Because he and his wife had saved diligently and had no debt, the second layoff became a "blessing in disguise," allowing him to take a low-stress, work-from-home job that keeps him productive without financial pressure.
Mitchell K: Advocates that if you work for someone else, you must plan for the possibility of a layoff by saving as much as possible, as early as possible, and taking full advantage of employer 401(k) matches.
Jim Verdonik: Stresses that a career boom is temporary and fortunate. He advises saving diligently during high-earning years because that boom won't last as long as you plan.
Shelly Wheeler: Highlights the double burden faced by the "sandwich generation," where a late-career layoff can coincide with the immense stress of caring for both children and elderly parents.
Kenneth Johnson: Recounts his experience with blatant age discrimination during interviews after a management change. He emphasizes that he was able to retire early because he had saved enough, and now uses his management skills in the non-profit sector.
Brent Edwards: Offers direct and simple advice: plan for unemployment at age 55 by living below your means, paying off your house early, and consistently saving and investing.
Edward Kelly: Advises professionals to act as the "CEO of yourself" by continuously investing in their skills. He notes that finding a job with similar compensation and benefits after 55 is extremely difficult, making self-reliance critical.
Bob Schneider: Shares his observation that corporate America has very few workers over 50 who are not in senior executive or partner roles, implying it's an unwelcoming environment for older employees.
Teresa Gillespie: Presents a positive outcome, explaining how a layoff at 50, though initially scary, led to a year of personal rejuvenation and a new, more fulfilling career that lasted until she was 70.
Bruce Montgomery: Argues that most professionals are forced out of their jobs due to age discrimination and are unable to find equivalent positions, making it essential to save aggressively to retire on your own terms.
More Weekend Reads
If you enjoyed diving into retirement savings data, you might find these recent Weekend Read articles helpful for your financial planning journey:
How America Saves (July 13, 2025) - A quick look at how people are actually saving money in the US and why most of them are getting it wrong.
Never Bet Against America (July 4, 2025) - Why long-term investing in American markets has historically rewarded patient investors, despite short-term volatility and economic uncertainty.
5 Reasons Not to Convert to a Roth (June 30, 2025) - Before jumping on the Roth conversion trend, consider these scenarios where traditional retirement accounts might serve you better.
401(k) Loans: When They Help and When They Hurt (June 13, 2025) - The strategic uses and hidden costs of borrowing from your retirement account, plus alternatives to consider first.
Rent vs. Buy: Which Makes Financial Sense for You? (June 6, 2025) - Beyond the emotional factors, here's how to run the numbers on one of the biggest financial decisions you'll make.
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Past performance is no guarantee of future returns
The graphs and charts in this commentary are for illustrative purposes only and not indicative of any actual investment. Index returns do not reflect any fees, expenses, or sales charges. It is not possible to invest directly in an index. Stocks are not guaranteed and have been more volatile than other asset classes. Historical returns were the result of certain market factors and events which may not be repeated in the future. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgement in determining whether investments are appropriate for clients.
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