Facing a layoff can feel overwhelming and deeply personal. When that job loss happens close to retirement, it can interrupt decades of careful planning and savings.
The good news? Your retirement goals are still within reach. This guide offers simple, actionable steps to help you regroup, move forward, and make the best of your golden years.
How to regroup after a layoff
Before you tackle these steps, take a deep breath. Being laid off is stressful, but you can create a plan that works for you and your family.
Set or adjust your budget
- Know what you’re spending. If you haven’t already created a detailed budget, now’s the time to start. Our budget calculator makes this process easy. If you’ve already set a budget, review it to refresh yourself with what you’re spending on monthly essentials, like mortgage, groceries, and insurance.
- Know what you have available. Review balances in checking, savings, 401(k), and IRAs. Keep this info handy.
- Cut back on nonessentials. If your numbers show that you’re spending more than you want (or more than you’re earning), temporarily cut back on dining out, entertainment, and subscriptions
Explore emergency and bridge funding
- Tap savings first. If you’ve built a three-to-six month emergency fund, now is the time to strategically use it.
- Earn supplemental income. Try tutoring, gig work (like TaskRabbit Baltimore), or seasonal roles (like the Maryland State Fair).
- Choose the best 401(k) option for you.
- Leave it in your old employer’s plan, if you’re allowed.
- Roll it into your new employer’s plan when you’re hired.
- Roll over into an IRA to avoid tax penalties and gain control.
- Cash out only as a last resort because you will be subject to taxes and penalties.
Use available state resources
- Apply for unemployment benefits.
- Use Maryland’s free career transition support. Governor Moore’s Career Transition website helps job seekers:
- Find job opportunities and access free résumé help, mock interviews, skills workshops, job fairs, and career advising.
- Federal workers may also be eligible for emergency loans and the Civic Match program, which streamlines state hiring initiatives.
- Maintain health insurance.
- Get temporary COBRA coverage. Your past employer will offer your current plan for up to 18 months, but you are responsible for paying the entire premium, and it is costly.
- Compare plans on the Maryland Health Connection. These are typically more affordable than COBRA, and many are subsidized.
- Join your spouse’s insurance. A layoff is considered a qualifying life event for mid-year enrollment.
- Keep critical insurance like life or disability if it fits your budget.
Stay positive and proactive
- Stay connected. Update your LinkedIn and post that you’re looking for a new opportunity, reach out to former colleagues, and attend networking events.
- Upskill or volunteer. Consider certification courses or volunteer locally to maintain confidence and a routine.
- Treat your job search and financial planning like a job. Get up at your normal time and set aside several hours to research or apply for jobs. Structure and routine help keep the momentum going.
- Prioritize self-care. Exercise regularly, socialize with friends and family, and eat nutritious meals. Your physical and mental health are just as important now as they were before the layoff.
Your retirement dreams are still possible
A layoff is jarring and emotional, but you don’t have to navigate it alone. We’ve helped many Marylanders regroup after a job loss.
Our financial wellness checkup is a no-cost way to:
- Map out your financial picture.
- Build a custom rebound plan.
- Have your questions answered.
- Get peace of mind in 30 minutes.
You can confidently take the next step toward achieving your retirement goals. Book your checkup here. Or explore the resources we have available in our member relief center.
