Jan 13, 2026
When Amy Smith of Kansas City lost her six-figure human resources management job at 57, she expected the disruption to be short-lived. She had decades of experience, a strong résumé, and had successfully navigated being laid off before. At most, she figured she’d be back to work within 60 days (1).
Instead, her layoff triggered a 20-month stretch of unemployment that drained her finances, left her without a home and severely affected her mental health, according to Business Insider.
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“I went from living in an apartment with all the bells and whistles, not even thinking about money, to going on food stamps, selling my belongings and moving into a friend’s basement — all because I couldn’t find a job,” she told the publication in an essay published Dec. 17. “The rejections took a toll on me, and I fell into a depression. I just had this feeling that everything was closing in on top of me. Some days, it even felt hard to breathe.”
Smith also felt her age was working against her in the job market. Her story is a stark reminder of how vulnerable older workers can be when income suddenly disappears.
How a layoff unraveled her finances and housing
Smith’s role was eliminated in late 2023 as part of a corporate restructuring at the bank where she worked, per Business Insider. Initially, she approached the job search with confidence. She applied broadly, not just to senior HR roles but also to coordinator positions, hoping flexibility would speed things up.
But the rejections piled up instead. Interviews often stalled late in the process. At one point, Smith spent $450 she couldn’t afford on a professional résumé rewrite, only to be told by a recruiter friend that her original résumé was stronger.
As months passed, her financial situation deteriorated. Unemployment benefits provided temporary relief, but once they ran out, she applied for food stamps — a moment she described to Business Insider as devastating after years of professional stability.
“I remember bawling to myself. I just had this overwhelming feeling that I didn't know what to do,” she said.
Smith sold personal belongings and picked up odd jobs to survive. She fell behind on rent and was turned over to collections just before her lease ended. She packed what she could into her SUV, stayed with family out of state and eventually returned to Kansas City to live in a friend’s basement. At 59, she was grateful for the support, but shaken by how quickly her independence had vanished.
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Why job loss in your 50s can be devastating
Smith’s story is a reflection of what many aging workers feel. According to a 2025 AARP survey, about two-thirds of workers aged 50-plus have experienced age discrimination in the workplace (2). The group also notes that older job applicants may be dismissed early in the hiring process because recruiters may assume their skills are outdated and they’re not up to a new challenge.
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For workers nearing retirement, prolonged unemployment carries compounding risks. Savings meant for retirement may get tapped early, as was the case for Smith. Housing can become precarious. Contributions to 401(k)s and IRAs stop. And with fewer working years ahead, there’s less runway to rebuild what’s lost.
Smith also described to Business Insider the mental health toll. Rejection after rejection fed a deep depression that made even basic tasks feel overwhelming. Financial stress and emotional strain often reinforce each other, making it harder to maintain the momentum job searching requires, especially when confidence is already shaken.
Preparing for — and bracing against — unemployment
After 20 months, Smith finally landed a new HR role she loves. She credits persistence and forcing herself to take small daily steps with pulling her out of a dark period.
“If I could talk to the version of me that was struggling most, I’d tell her to get out of bed, brush your teeth, and get out of your pajamas, even if it’s just to put on a T-shirt and some jeans,” Smith told Business Insider. “Pushing myself to do something every day is what helped shake me out of my depression.”
But she’s aware that her experience exposed how unprepared she was for a long stretch without income. For workers in their 50s, her story highlights the importance of larger emergency cushions. Many financial planners recommend six months’ worth of expenses, but older workers may want to stretch that to 12 months. If you keep track of your spending via a budget, you may also know ahead of time which expenses can be cut immediately, and which can’t, in order to slow the financial damage.
Preparation also means thinking beyond cash. Keeping skills current and maintaining professional networks can shorten unemployment if layoffs hit. If a job loss seems likely, it can help to pause discretionary spending, delay large purchases and build liquidity before paychecks stop.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Business Insider (1); AARP (2)
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Chris Clark is a Kansas City–based freelance contributor for Moneywise, where he writes about the real financial choices facing everyday Americans—from saving for retirement to navigating housing and debt.
