Forced into retirement? What you should do

Did you love your job?

If so, you may have been happy with your working life.  That is until your supervisors explained that your company was cutting costs.  Due to cost cutting measures, you are being forced into early retirement.  If you are like many other individuals in your shoes, panic may be the first feeling that sets in.  Yes, being forced into early retirement may seem like “the end of the world:” it does not have to be.

When forced into early retirement, you will be required to sign a number of important documents.  Never agree to retirement without first learning about your company’s terms and conditions of service.    You may need to consult a financial advisor right away before you sign anything.  Determine what your best course of action is.

Early retirement can twist your plans.  You may need professional assistance to get those plans fixed; and put back on track.  A financial advisor can examine your retirement wants and needs; and advise you accordingly. You can also be helped to plan for your next course of action.

In the event that you opt for a severance package, do not spend that money right away.  Many people forced into retirement unfortunately make this mistake.  If you are living day-to-day, use your money to pay for your necessities, such as food and shelter, but nothing else.  If you have “extra,” money, deposit it into a savings account.  Doing so keeps you stable: enabling you to plan, research and consult before taking appropriate action.

It is also important to remember that social security benefits come with rules and restrictions.  Just because you are forced to retire early, this does not mean that you qualify to receive social security yet.  That is why you are encouraged to take action; and do so right away.  Should you qualify for early social security benefits, due to your age, know that the amount you receive overtime may be smaller than what you intended to live on.

Most importantly, remember that being forced into early retirement does not necessarily mean that you have to stop working.  If you are asked to retire a few years earlier than planned, looking for alternative employment or going into business may be serious options to consider.

If you have not been forced into retirement, this is an event that you should still plan for.  Companies for several reasons resort to offering early retirement packages to many of their long-term workers, particularly those that are close to the retirement age.  Even if you are only twenty or thirty years old, please know there is a chance that you could be forced into early retirement. That is why it is imperative that you start saving for retirement now, as you never know what the future holds.

By Retirement Life Hub Team