Laid Off - In Charts
Over the years, many clients have shared the challenges they’ve faced after being laid off later in life. One by one, they came to realize that it’s a lot tougher to land a job in their 50s than it was when they were younger.
The Wall Street Journal1 recently reported on data collected by the Center for Retirement Research at Boston College, and the numbers on getting laid off later in life are sobering. “People in their 50s and 60s take longer to find new jobs, while others retire earlier than planned.”
Five charts tell a compelling story for anyone who is laid off later in their career, which, unfortunately, is not uncommon. Among people aged 50 to 65, 14% had been laid off once, while 4% had been laid off more than once. Among those laid off at least once, 24% were unable to find a new job.
“The average weeks of unemployment for persons 55-64 who were laid off was 26 weeks, and 32 weeks for those 65 and older. “Older career workers who find new jobs take an 11% wage cut, on average…The pay cut was 15% for men and 7% for women.”
Since 1991, the average retirement age has increased by about three years, due to a substantial increase in the average retirement age for women.
“Many Americans have a job at some point in their 50s and early 60s without 401(k) and health insurance benefits, according to Boston College’s Center for Retirement Research….The loss of benefits could be a sign of declining job quality for older job switchers….Those who frequently work without benefits in their 50s and 60s end up with about 25% less retirement income than workers with such benefits.”
“Workers need to understand that the retirement decision will not always be their choice.” Workers believe, for example, they’ll be able to slowly transition into retirement, but the reality shows otherwise.
1 “Tergesen, Anne, and Veronica Dagher. “Here’s What a Late-Career Layoff Looks Like in America, in 5 Charts.” The Wall Street Journal, 19 July 2025.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by S.F. Ehrlich Associates, Inc. (“SFEA”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from SFEA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. SFEA is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of SFEA’s current written disclosure Brochure discussing our advisory services and fees is available upon request. If you are a SFEA client, please remember to contact SFEA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, or revising our previous recommendations and/or services.