Mar 6, 2026
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Announcing your retirement a few months in advance is often considered a courtesy to your company. Not only does it give your employer time to manage the transition and hire a replacement, but it also gives you plenty of time to get your personal finances in order.
But what happens if, shortly after you announce your retirement, your employer decides to show you the door ahead of your official end date?
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If you've already announced your retirement, it can be a frustrating and disorienting experience to suddenly get fired after years of service. It's also natural to wonder if your employer is breaking the law.
Can an employer fire you after you announce your retirement?
Surprising as it may sound, your employer is not typically under any legal obligation to let you keep working once you’ve announced your plans to retire.
An AARP analysis of data examined by the Urban Institute and ProPublica from a Health and Retirement Study (HRS) report found that 13% of older workers entered retirement unexpectedly, which the researchers say suggests workers were likely forced out of their jobs (1).
That's because most states have at-will employment laws. An at-will employee can be fired at any time for any reason and without warning — no “just cause” required.
But you may have some legal recourse if you have evidence that your employer fired you to stop your pension from “vesting” or as a direct result of age-base d discrimination. These would violate the Age Discrimination in Employment Act (ADEA) and Employee Retirement Income Security Act (ERISA), and you may have a case on your hands.
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What should you do if you're forced into retirement early?
You have a few options if you're terminated before your official retirement date.
Your company may offer severance pay as a way to get you to waive your right to file certain lawsuits against your former employer. Aim to negotiate the fairest possible severance package, including asking your employer to continue subsidizing your health coverage. Otherwise, you may be forced to get private health insurance to cover an employment gap.
Another option is to apply for continuation of health coverage under The Consolidated Omnibus Budget Reconciliation Act (COBRA) (2). However, COBRA coverage only applies to group health plans with a minimum of 20 employees. Additionally, those who qualify may need to pay the entire premium for their coverage, up to 102% of the plan’s cost.
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The main advantage here is the continuation of your healthcare plan, but the price tag could be a major disadvantage, depending on your financial situation.
Check-in with an expert
To know where you stand, you may want to consider talking with a financial advisor to understand how being let go will impact your retirement plans. And if you have the finances to support an early retirement, a financial advisor can help you plan for your golden years.
If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors who can help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances, and the platform will match you with up to three experienced financial professionals. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Take advantage of senior-focused discounts
As you get closer to retirement, every dollar starts to matter more.
Between rising health care costs, economic uncertainty and living on a fixed income — making your nest egg last can feel like a challenge.
That’s where AARP — a trusted organization for many older Americans — comes in. You can get discounts on almost everything, from prescriptions and dental plans to travel, entertainment and insurance.
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Even better, AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan, and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and you can get 25% off your first year.
Prepare your finances for this scenario
By being proactive, you can hopefully ensure that your employer's decision to force your early departure doesn't derail your retirement goals.
“You may not have 40 years left, but you’ve got today. And that’s enough to start turning the ship around,” Dave Ramsey, the well-known financial guru, told Kiplinger.com (2).
Creating a financial buffer can help you weather this challenging time without compromising your lifestyle or taking on additional debt. You may want to invest in safe-haven assets like gold, which tends to deliver stable returns over time, while hedging your portfolio against inflation and recession risks.
A shining safe haven
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Keep some cash liquid
But make sure not to keep all your eggs in one basket. If all your money is tied up in stocks or precious metals, an emergency expense might force a withdrawal during market downturns or drive you into debt.
If you don’t have a consistent source of income, financial experts like Ramsey recommend keeping at least 12 to 18 months' worth of expenses in your emergency fund.
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“While saving adequately for retirement is crucial, an emergency fund ensures income stability no matter what comes — health issues, home repairs or market drops,” according to Marty Burbank, founder of OC Elder Law (4).
“Retirees can’t predict future costs or market changes, but an emergency fund helps ensure financial security to fully enjoy retirement.”
Make your emergency savings work harder for you
Keeping your emergency fund in a high-yield savings account can help ensure your money remains accessible while earning interest.
A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s ten times the national deposit savings rate, according to the FDIC’s January report.
A Wealthfront Cash Account also lets you pay bills, set up direct deposits and cash checks while raking in high interest rates.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
AARP (1); The Department of Labor (2); Kiplinger.com (3); GoBankingRates (4)
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