Why losing your job at 55 is particularly bad news.

From Bankrate.com:

“If you are laid off at 55, your retirement planning has probably been replaced by crisis planning. The Government Accounting Office released a report this morning pointing out that the seasonally unadjusted unemployment rate for older workers increased from 3.1 percent in December 2007 to a high of 7.6 percent in February 2010, before decreasing to 6 percent in April.

…When older workers do find another job, on average, they earn 15 percent less than they did previously. Younger people either match or improve their wages when they are rehired.

Time out of work and a lower salary after being rehired has a serious impact on savings. For a former employee with a 401(k) retirement plan, joblessness — even if the worker doesn’t dip into the plan — can mean fewer years to save and a lower overall contribution. In the case of workers with a traditional pension, losing a job can prevent them from vesting.

The GAO also pointed out that joblessness pushes people into claiming Social Security at 62, which not only lowers their benefit, but also can reduce the benefit overall because, had the person stayed on the job, their benefit would have reflected higher earnings.”

Read more: Job loss at 55 is bad news | Bankrate.com http://www.bankrate.com/financing/retirement/job-loss-at-55-is-bad-news/#ixzz21SiFhlFY

 

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About UWF Center on Aging

The Center on Aging at the University of West Florida was established in the Fall of 2010 when the School of Psychological and Behavioral Sciences faculty along with assistance from Sponsored Research submitted a grant to the State University System Board of Governors in support of aging initiatives for Northwest Florida. Its mission is to improve the quality of life of aging adults through the application of science to address challenges associated with aging and to promote healthy aging, with an emphasis on prevention. This will be accomplished through inter-disciplinary and inter-professional efforts of basic and applied research, consultation, and partnerships with community agencies. Education and training, direct services to the aging population, and public awareness and understanding of the contributions and needs of elders will be primary objectives.
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