Credit: Envato Elements
Today’s job market is a bit of a head-scratcher. On paper, things look strong — unemployment is low, wages are (somewhat) rising, and there are job postings aplenty. But talk to someone over 60 who’s actively job hunting, and you’ll hear a different story entirely.
Getting laid off at any age is tough. But in your 60s? It can feel like a major setback — especially if you weren’t quite ready to call it a career. Unfortunately, ageism is still a very real issue in hiring. Many companies are hesitant to bring on someone they assume is just a few years (or months) away from retirement.
But here’s the good news: while it may take longer to land your next opportunity, there are options — both financially and professionally — to help you stay in control.
First, Take a Breath — Then Take Stock
After a layoff, your first instinct might be panic. But instead of rushing into early retirement or filing for Social Security immediately, it’s wise to slow down and assess your situation carefully. That includes looking at your finances, benefits, and long-term plans.
Here are three key questions to ask yourself:
1. Have You Reached Full Retirement Age?
Social Security is an obvious lifeline when you lose a job — and yes, you can start claiming as early as 62. But doing so before your Full Retirement Age (FRA) means your monthly benefit will be permanently reduced. For people born in 1960 or later, your FRA is 67.
For example, if your monthly benefit at FRA would be $2,000, filing at 62 could cut that down to around $1,400 — for life. That’s a pretty steep discount.
If you’re 64 or 65, you might only need to bridge a short gap before hitting FRA. In that case, finding temporary income (more on that below) might be worth it to lock in higher long-term benefits.
2. What Will Severance and Unemployment Look Like?
Not all companies offer severance, but many do — and some have generous formulas based on years of service. If you’ve been with your employer for a long time, this could add up to several months of continued pay. That cushion, combined with unemployment benefits, could buy you the breathing room you need.
In most states, unemployment lasts up to 26 weeks (though this can vary). Benefits typically replace 40–50% of your previous income — not ideal, but still helpful.
Here’s the key: you don’t need to rush into Social Security just because you lost your job. Use your severance and unemployment strategically. The more time you can wait, the better your monthly benefit will be later.
3. Do You Actually Want to Retire Right Now?
Just because you got laid off doesn’t mean you’re ready to retire. Maybe you love what you do. Maybe you still want to contribute — just on your own terms. Or maybe you need a few more working years to meet your financial goals.
Whatever your situation, consider whether you want to:
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Look for a full-time role in your field
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Transition into part-time, freelance, or consulting work
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Pivot to something totally new — even if it pays less
Many older adults find success and satisfaction in “second act” careers. If you can generate income doing something flexible or fulfilling, it might allow you to delay Social Security even longer and boost your financial security down the line.
Bonus Tip: Don’t Go It Alone
There’s no shame in needing help after a layoff — and plenty of resources exist. Start with:
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AARP’s job board: Specifically designed for workers over 50
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State workforce agencies: They often offer resume help, retraining programs, and job search support
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Financial advisors: Especially helpful when deciding on Social Security timing and budgeting post-layoff
The Bottom Line
Getting laid off in your 60s isn’t easy — but it’s not the end of the road, either. Whether you choose to retire, return to work, or try something new, the most important thing is not to rush into decisions out of fear.
Explore all your options. Know your numbers. And remember: your career isn’t over just because one door closed — sometimes that’s just the beginning of something better.
