Dear Helaine: I’m a 63-year-old corporate executive and was unexpectedly offered an early retirement package as part of a corporate downsizing. The package is OK, but nowhere near enough to carry my wife and myself through the next few years. I don’t want to file for Social Security till my late 60s, so I can get the full benefit.
I can turn it down, but then I could be let go with a much smaller package if there are layoffs. I don’t have a pension, but I have a substantial amount in my 401(k). I was counting on having another four or five years to beef up my savings between contributions and appreciation. Now what do I do? Who’s going to hire me at a salary anywhere near what I was making? How can I recover from this?
— Holding On
Dear Holding On: I am sorry to hear this but not terribly surprised. All too many people — perhaps a majority — over the age of 50 are pushed from their workplace before they are ready to retire. Few are able to fully compensate for the financial damage that results.
There is no magic formula for making up for losing your salary before you expected it to happen. Moreover, age discrimination is not just an unfortunate reality, but also one that’s extremely difficult to combat because it is very hard to prove, thanks to a Supreme Court ruling in 2009. Legislation to fix that has been stalled in Congress ever since.
