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My wife was laid off the other day. After thirty years at one company. For the first time in her working life, forty years, she was told her services were no longer needed.
Even though we’re financially fine, and now that she may join me in retirement, I’m unsettled. I think it’s because we have both crossed the retirement line. We’re no longer actively working to make money. We’re now 100% earning money passively. We’re relying on all the acorns that we’ve saved, invested. We’re now dependent on the efforts of others, and the stability of our current financial system.
Issues that are discussed on HD become more relevant. I’ll take things one day at a time, and chant my FEAR mantra, False Evidence Appearing Real. Hopefully that keeps my anxiety at a very low simmer.
Venicio, while condolences are in order, so might be congratulations. I’m sure being laid-off after thirty years of commitment and service feels like (and is in my opinion) a form of betrayal. And I’m sure you both feel unmoored and mournful. But if you both are in fact financially fine,, I suspect that given time you will look back at this unsettling event as an unintended but ultimately fortuitous gift (i.e being able to fully share your retirement together, sooner rather than later). Major marriage altering events such as yours bring to mind the last lines of Milton’s “Paradise Lost”. As you may recall, having been “laid off” by the boss, Adam and Eve are forced to retire from Eden. I’ll leave you in the hands of Milton:
Some natural tears they drop’d, but wip’d them soon;
The World was all before them,
where to choose Their place of rest,
and Providence their guide:
They hand in hand with wandering steps and slow,
Through Eden took their solitary way.
Unfortunately, more layoffs keep coming and from what I’m reading, it can be skewed towards Gen X (my generation). I figured out a long time ago that loyalty means nothing to Corporate America and once I figured this out, I didn’t take anything as personal. Doesn’t mean it doesn’t hurt or impact your family – for this, I’m sorry. Reality is that this will happen more and more unfortunately.
Venicio – please accept my condolences to your wife and you. Having a long-term plan dramatically upset like that stings in many ways. I was laid off twice in my career. I had concerns that it might happen again late in my career, but was fortunate to find a new role with the same company about five years before I planned to retire. It hurts to not go out on our own terms.
The trip to Portugal sounds great, and I hope the break allows some new perspective for you both.
Sorry for your shock, digest it and move on as best you can. I had the same thing happen to me at 48 and 22 years of hard work, they called it downsizing, but really it was to save money, what else could it be. What provided comfort was pre-planning for a rainy day. I invested in our IRA, and never overspent my means. These situations always happen at an inopportune time, 3 children in college. It all worked out, and enjoying retirement now for 15 years since 65, and counting. Key, if you invested and lived within your means, I assure you a wonderful future. Just another life bump in the road, there will be more, so keep enjoying each day, one at a time. Best to you both.
First, let me say how sorry I am that your wife lost her job this late in her working career. Second, this was my biggest fear as I approached the last 5+ years of my working career before I retired.
I saved for retirement from my first day at work and upped my retirement contributions with every increase in salary. However, the last 5 years of retirement savings are critical, not only in the increasing amount you can save, but because of the compound effect of growth in these final years. While it may be possible to find another job for these last few years, the lost momentum in retirement savings from having to shift jobs is significant.
In today’s working world, I don’t have a good strategy to counter a late term lost job, other than to suggest to younger workers that you may need to save more than you think in the early years in order to have a safer cushion if you are forced to “retire” earlier than expected.
What a terrible way for a 30 year chapter of one’s life to conclude! I’m going to quote another Jimmy Buffett lyric; “yesterday is over my shoulder, so I won’t look back for too long”. Look forward, and best of luck for this new adventure you are beginning.
“ stability of our current financial system” that is so important to retirement.
Condolences to your wife. There is no mistaking the knot in one’s stomach when employment is suddenly ended, irrespective of age, stage of life or financial position. It’s always a bad feeling, and instinctive financial concern is only part of it. Your wife will be feeling rejected and very much off-kilter as well.
Best to you both as you navigate this choppy surf. I found volunteer work to be a welcome palliative.
Wow, after 30 years I can appreciate the shock. She sould approach this initially as a sabbatical and, then consider looking for part-time employment if she is so inclined. It is not unusual for the newly retired to feel a bit off balance. It can take a while to adjust.
Venicio, your feelings are totally normal. We have only been retired 2 years and had the same feelings. Things are better now. I am sorry your wife was laid off after 30 years, I am sure it was a shock for her. I hope she got a good severance and health insurance won’t be an issue for you. Chris.
Yes and yes. We’re fortunate. Cobra is actually reasonable compared to state insurance plans.
Welcome to the club! If you are in your mid to late 50’s, have 20+ years with the company, your position has been eliminated. Of course, it is not age discrimination; it’s just a coincidence that your position was eliminated as the company shifts course. Sign this letter stating your age had nothing to do with us letting you go, and you will get a separation package, 6 months’ pay. Don’t sign it, and you get nothing.
Do you see a pattern in the people who have been let go from the company? Of course, age discrimination is illegal, but good luck with that. The politicians have their heads in the sand regarding companies letting older workers go. (I wrote to them and got a standard form letter response, assuring me they are on top of it.)
The company CEO made XX millions in stock options for running an efficient operation. But that is good for our stock prices, isn’t it? What about society? The vast majority of CEO compensation—roughly 70–80%—is delivered via stock awards and options. The gap between CEO pay and average worker pay has reached historic levels in recent years. It is out of control.
Under 65 and don’t have Medicare, good luck finding health insurance under $1,200.00 a month with no paycheck coming in.
Being over 50 and trying to find a job to replace your mid-level management position pay rate is next to impossible. Next time you are at the grocery store, Dollar Store, or other retail establishment, look at the age of the person bagging your groceries. You are now competing with the younger generation at entry level low paying jobs.
Luckly I was in a good position for early retirement. We spent less than we made. We have no vacation home, drive a 13-year-old car that still runs great, and live below our means, but very comfortably.
We made regular contributions to our investing plan and are able to live off part of our dividends from our investments without having to sell any of our stock/mutual fund, or ETF shares. Since we don’t need all of our dividends for living expenses, we are able to reinvest the difference and continue to grow our monthly income. We are one of the lucky ones.
I see some people who live paycheck to paycheck, have fancy cars, boats, jet skies and garages overflowing with stuff that they can’t even get their cars into the garage. They lived the good life and didn’t plan for tomorrow. Now they are paying the price. Should we concern ourselves with their plight?
I see many other people my age or older who say they can’t afford to retire. Working low-paying jobs, trying to make ends meet. Paying for health insurance and medications vs eating today. Barley able to keep up with the high inflation environment we are currently experiencing.
Some people are in a bad condition because of the choices they made with their spending habits. Others just didn’t have the opportunities and advantages in their lives, didn’t catch a break. Luck plays a big part in life. The decision you make today will affect your tomorrow is one of the sayings my wife repeatedly told our kids.
This is the mess our generation has allowed to occur. What can we do about it?
Where I live we have quite a few older people running the check-out lanes in the grocers, etc. I’d guess the ratio of old to young is about 50/50.
Vote out the politicians who bend the knee to the CEO’s who finance their re-election campaigns (although most if not all politicians rely on their money), and vote out those who pass bills their donors write for them. Especially in the healthcare field, which is why our healthcare system is so broken.
It’s more like CEO compensation includes about 60% non cash, but that compensation is paid for by shareholders and is not guaranteed. Stock options have time limits and can be worth nothing. In any case it doesn’t take from workers.
I doubt most workers would want that type of compensation. However, I do support some form of profit sharing for all workers.
Regardless, CEO’s make a fortune.
Many in the S&P 500 companies do, but you wouldn’t want the job and hours that go with it.
Thanks for sharing. A lot of content to your comment.
Scary stuff for sure, but take a deep breath and carry on. Now focus of making the most enjoyable time of your lives.
You were already retired so you have experience. Surely your plan was not to rely on your wife’s income during your retirement forever.
On the emotional side it’s time to give your wife support. I bet she is feeling a bit unwanted at this point, a bit let down by her employer.
She wanted to retire, but on her terms. When the layoff happened, she realized she was not ready. Financially we’re fine. We just have to accept the new reality. She may go back to work, but for now she’s busy planning a trip to Portugal.
I bet when you get back from the trip she will say, hey, this retirement stuff isn’t so bad.
Are part-time jobs an option during this retirement phase? This plan worked well for us, providing a modest extra income to supplement Social Security so we could continue to leave our retirement savings to grow. The key was control over the work schedules.
My spouse worked a flexible, seasonal job helping to run a family entertainment center at a beach resort. I transitioned to occasional freelance work with complete control over my scheduling. We bought a used “class B” RV diesel engine van and made long trips (one to two months away at a time) around the US and Canada for about 8 years. The van served as a second car when we were at home. Those were great years.
I hope this next phase of your life all turns out like you would hope.
Whilst many are lucky enough to choose a retirement date, the reality is that many don’t. Redundancy, ill health and a range of other factors can bring about a retirement at an unexpected time.
With some time to absorb your change of plans, I hope that it turns into positive for you.
Some days I look like a Cheshire Cat with a big, huge grin. The book Die With Zero, discussed on HD, mentioned the interplay between Time, Health and Wealth. We’re at the sweet spot of all three. Yes, I’m excited on this phase of our lives.
I’m sorry to hear about your wife’s job loss, especially after thirty years. However, once the initial shock wears off, perhaps there is room to celebrate the start of a new adventure for you both?
When you step back and think about it, that sense of “independence” you felt while working is largely a comfortable illusion. Throughout your career, you were always dependent on your company’s leadership not making catastrophic decisions, the banking systems functioning correctly, and the broader economy remaining robust.
To my mind, you haven’t actually lost your security; you’ve just traded one form of dependency (a boss and a paycheck) for another (the market and dividends).
Maybe your anxiety stems from the fact that the first one felt like a partnership, whereas now you feel closer to the “coalface” of the global economy, which naturally causes some nervousness. But look at the trade-off: in exchange for that perceived partnership, you’ve gained total autonomy. You likely have more genuine agency and control over your life in this new phase than you ever did while on the clock.
Wishing you both the best as you navigate this—I think you’ll find the “acorns” are sturdier than they feel right now.
“Throughout your career, you were always dependent on your company’s leadership not making catastrophic decisions, the banking systems functioning correctly, and the broader economy remaining robust.”
I would second this comment. When I was working as an engineer in the Middle East there was a downturn in oil prices in the late 1990s. Although my job did not end due to the economic slump (oil was about 80-90% of the country’s GDP), all of us “guest workers” discovered that an employment contract was no guarantee of continuing employment. We were all just 30 days away from being sent home to find employment elsewhere.
I lived there for 28 years with that 30-day horizon always in view….
Yes, I constantly reminded myself that I was an employee at will, and could be let go at any time. It’s one reason I kept saving and investing.