32% of Older Workers Say Layoffs Delayed Retirement by a Year: How To Protect Your Timeline
A layoff can do more than disrupt your paycheck — it can also shrink savings time and push back long-term plans. According to a recent ZipRecruiter report, 32% of Americans ages 60 and older who had been laid off at some point during their careers said the setback delayed retirement by at least a year.
Fortunately, a few smart moves can help limit the damage, from replacing income quickly to cutting expenses and sharpening in-demand skills. Here's how to keep your long-term finances secure in the event of a layoff.
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Replace Lost Income With Consulting or Contract Work
It's easier to stay consistent with retirement savings if you continue to have money coming in.
"One tip to stay on track with retirement targets after experiencing a layoff is to start consulting," said Sam DeMase, career expert at ZipRecruiter. "Leverage your existing skills and decades of expertise. Know where you add the most value and niche down your value proposition. You can still apply for full-time roles while your consulting work brings in income."
Cut Discretionary Spending To Prevent Derailing Long-Term Savings
While you're in between roles, you may need to cut some discretionary spending to have enough in your budget to save for the long term.
"Perform a full budget audit," DeMase said. "Outline all of your expenses and make adjustments where you can to save money in the short term."
Build AI and Tech Skills To Improve Your Job Prospects
Use the extra time you have to learn new skills or get new certifications, especially ones that can make you a more viable candidate for high-paying roles. Tech and artificial intelligence skills are particularly in demand right now.
"Train yourself up on core AI platforms — Claude, Gemini, ChatGPT — and skills, including strategic prompting, calendar efficiency and notetaking," DeMase said. "Combine your extensive work experience with cutting-edge tech knowledge to land more opportunities."
If you land a higher-paying role, you can stash more away for retirement to account for any missed savings during your unemployment.
Replacing income, cutting costs and improving your marketability won’t erase the setback overnight, but they can help you preserve more of your long-term plan.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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