Employment Risks that Can Derail Your Retirement

Forced Retirement

The vast majority of baby boomers have scheduled their retirement dates. But those dates are predicated on continuous employment. Some boomers have been victims of downsizing or corporate consolidation, forcing them into an early retirement they can’t afford. In addition, securing a new job may be difficult to land in the present economic environment.

Reemployment

Seeking employment in your late 50s and early 60s is one of the most depressing experiences anyone near retirement can undergo. Age discrimination is a real employment nightmare, as businesses seek cheaper labor in place of seasoned veterans who may cost more to employ. And those who do land a job generally make less than their previous employment.

Employer Insolvency

The economy is not a robust environment for small businesses to generate growth and increased wages. Often small-business entrepreneurs have to close down their companies. The employer suffers the loss of their business and employees suffer the loss of their jobs. When a business closes their doors in this environment, widows of opportunity are not as numerous. It can be tough finding employment when you’re so near retirement.

Spouse’s Loss of Job

In the modern 21^st-century family, most households are supported by two incomes. The big domestic budget items like a mortgage, auto payments and college tuition for children are all predicted on dual income. Most families are living on the edge of their budget, so when one spouse loses their job, it can really hurt a family, especially older workers and their retirement plans.

All four-employment risks can derail your retirement, so develop an employment plan B to keep your retirement on track.