Especially if you are over 50. The Urban Institute study by Richard W. Johnson and Peter Goesselin tracked 2,086 people from 1992 to 2018 until they were 65. Study showed regardless of education level 28% were laid off / business closed, 13% quit for job dissatisfaction/boss, 13% unexpected retirement, 9% health / disability / family, and 2% other. Total 66% careers disrupted with over 6 months unemployment or family income down by 50%. Only 19% choose to retire and 16% are still working after 65.
Employers have an aversion to hiring older workers. “Only 1 in 10 of involuntarily separated workers ever earned as much after their separation as before. Median household income fell 42 percent following an employer-related involuntary job separation”.
Interesting most job growth is over 55, but mostly low paying jobs like “home health-care, personal health-care and in janitorial services. It might be the bargaining power of older people is just not pushing up wages,” - labor economist Teresa Ghilarducci.
What can we do?
1) Save more money for retirement. Every year when you get a raise, increase your % retirement savings and your emergency savings. Avoiding unnecessary debt. Buy a smaller home and less expensive or used cars.
2) Keep learning and developing skills in demand while working. Research your and other industries. What skills do your company need they are having a hard time hiring? What skills related your existing strengths are other employers having a hard time hiring? These jobs should pay better. If your employer won’t pay for it, you pay for it. Community colleges are very affordable. Be more productive, a revenue producer and value creator. Make sure your boss realizes that.
3) If you are laid off, deal with the emotional loss first. Take a little time to grieve your loss, work is a large part of identity. Start collecting unemployment and find what benefits you can get immediately. Work a taxi job beneath your education to get through. Work off any kind helps your confidence. Consider freelance work full time. Companies often hire experience people at higher pay on projects, rather than hire full time.
4) Keep your health up. Exercise and eat healthy to stay energetic. You will enjoy your life better than sedentary coworkers. Plus you will be more productive and a key person to keep.
5) Plan on downsizing your condo/house after you retire. Move to a community or near family in an affordable area when your income goes down. After layoffs my wife and I shared an apartment with a roommate to save on expenses until our income recovered.
None of this is pleasant to consider. However only 1 in 8 work till full retirement age, we must prepare and expect difficulties in life. My preparations got me hired after 50 by a Fortune 100 company at a higher income. These steps will give you resilience and a better career.
Links to articles below:
Urban Institute ‘How Secure Is Employment at Older Ages?’
Marketwatch - ‘Holding on to a job after age 50 isn’t always easy’
AARP - ‘Workplace Age Discrimination Still Flourishes in America’
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