Near Retirement and Recently Laid Off? See How to Protect Your Savings and Financial Future

Core Insights - The article emphasizes the importance of taking a measured approach after a layoff, particularly for those nearing retirement, highlighting that there are still options available to secure financial stability [2][6] Financial Assessment - After a layoff, individuals should assess their entire financial profile, including savings, expenses, severance packages, and potential unemployment benefits [3] - The goal is to optimize cash flow before tapping into long-term savings, which may involve seeking part-time or consulting work to cover financial gaps [3][6] Avoiding Mistakes - Withdrawing from retirement accounts like a 401(k) before age 59½ can incur taxes and penalties, and it also jeopardizes future compound growth [4] - Claiming Social Security early at age 62 results in reduced monthly benefits, while delaying until full retirement age (67 for those born in 1960 and later) can increase benefits by 8% for each year delayed, up to age 70 [5][4]