Laid off late in life? Here’s how to tackle sudden job loss in your 60s — without depleting your hard-earned nest egg

The good news is that you don't have to give up your dreams of a secure retirement just because of a poorly timed layoff. Here's what you should do instead.

Negotiate a solid severance package

First, you should focus on negotiating a solid severance package from your employer. This can provide a financial cushion as you cope with the layoff.

Employers may be more generous in granting severance when you're laid off at an advanced age because you're in a protected class and they want you to give up potential legal claims. Don't be afraid to use this leverage to negotiate what you deserve.

Beyond asking for a payout, you may want to negotiate to remain on your employer's health insurance plan for as long as the company continues to make their premium contributions as it did when you were employed. Medicare eligibility doesn't kick in until you're 65, and individual coverage can be expensive and less comprehensive than group coverage.

Claim your unemployment checks

You'll also want to claim unemployment checks ASAP — assuming you're eligible. Depending on your age and how close you are to your planned retirement, these could provide the funds you need to support yourself without having to access any savings ahead of schedule.

Unemployment benefits typically replace a portion of what you were earning before the layoff. However, if you can adjust your budget or take on a side job, or two, without exceeding the amount you are allowed to earn while collecting benefits, they may provide enough to live on as you get closer to retirement.

Network and explore new opportunities

Although you should look for income outside of a paycheck, there's no reason to assume working is off the table. It might take you a little longer or require you to work a little harder to find new opportunities, but doing so could make good sense if you aren't personally or financially ready to leave the labor force.

If you're out of practice when it comes to networking, start updating your resume and your LinkedIn profile. You can also join professional groups in your area or start participating in online conversations on social media to make new connections. Embracing online tools as part of your job search will make the hunt for your next opportunity easier.

Assess your retirement readiness

Finally, consider whether you're in a position to retire and start accessing your savings and Social Security immediately after the layoff or when your severance and unemployment benefits run out.

Before you choose this path, though, consider a few things:

• The sooner you begin withdrawing from retirement accounts, the greater your risk of depleting your funds. Be sure you set a safe withdrawal rate, which is typically no more than 4% of your investment account balance in year one, so your accounts don't run dry.
• Although you become eligible for benefits at 62, claiming Social Security early will shrink your checks. Waiting until 70 gives you the largest monthly benefit and the greatest chance of earning the maximum lifetime income from Social Security.

Still, if you have plenty of money saved, limited debt and are in a good position to retire, your layoff may provide just the incentive you need to start enjoying your life of leisure as a retiree.