What to Do If You’re Laid Off Right Before Retirement
Being laid off is never easy — but it hits differently when you’re within arm’s reach of retirement.
It’s the kind of life event that can feel like the rug’s been pulled out from under you. Suddenly, your countdown to retirement has turned into a scramble to figure out your next move.
But here’s the good news: there are next moves.
If you’ve recently lost your job and are five years or fewer away from retiring, now is the time to pause, breathe, and build a smart strategy
1. Pause the Spending
Your first instinct might be to panic — but don’t.
Instead, take a close look at your current expenses. Hit the brakes on non-essential spending. This isn’t about deprivation; it’s about buying yourself time and flexibility. The goal is to stretch your resources while you build your plan.
2. Understand Where You Stand
What income do you still have coming in?
How long can your savings cover your bills?
What will healthcare cost?
Answering these questions is essential — and if you’re unsure, this is the perfect time to talk with a financial professional.
3. Don’t Go It Alone
A trusted advisor can help you assess your savings, identify income gaps, and map out a realistic timeline. They also act as a buffer against emotional decision-making — helping you stay focused on long-term success rather than short-term panic.
4. Explore Your Income Options
If you’re 59½ or older, you can tap into retirement accounts without penalties.
If you're 55 or older and just left your job, you might qualify for penalty-free withdrawals from that specific employer’s 401(k).
There’s also a strategy called SEPP (Substantially Equal Periodic Payments), which allows access to retirement accounts at any age — but it locks you in for years. It’s best used cautiously and only with professional guidance.
5. Consider Working Differently
Early retirement isn’t your only choice. Many people find purpose — and financial stability — in part-time or consulting work.
Whether it’s using your experience in a high-impact role or working at a golf course or boutique, this season of life can still be productive and fulfilling.
6. Revisit Your Social Security Strategy
Starting Social Security early may seem like a solution, but it comes at a cost.
Filing at age 62 could reduce your monthly benefit by as much as 35%. Waiting until your full retirement age (typically 67) — or even delaying until 70 — could significantly increase your benefit.
Before making this decision, revisit your plan and consider the long-term impact.
You’re Not Alone — and You’re Not Out of Options
Being laid off late in your career is a serious challenge, but it’s not the end of your retirement plan.
With a clear strategy and the right guidance, you can protect your future and move forward with confidence.
Need help building your next steps?
📞 Call us at (405) 993-6296
🌐 Visit www.OBWMLLC.com
Let’s work together to help you prepare for the retirement you’ve worked so hard for.
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Disclosure:
All content discussed in this article is for informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Opinions expressed are solely those of Olive Branch Wealth Management, LLC and its staff. The information presented is believed to be from reliable sources; however, Olive Branch Wealth Management, LLC makes no representations as to its accuracy or completeness. This article shall not be construed as an offer to sell or a solicitation to purchase any insurance product in any jurisdiction in which the agent is not licensed. Topics should be discussed with a licensed insurance agent, tax professional, or financial adviser before implementation. Olive Branch Wealth Management, LLC is not affiliated with or endorsed by the Social Security Administration or any government agency.
