Imagine working your whole life, finally gearing up for retirement, and then getting fired after announcing it. That’s what happened to a 63-year-old employee — and understandably, it feels like a punch in the gut. But is it legal? And more importantly, what can you do next?
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Legality
In most of the U.S., employment is “at-will.” That means your employer can fire you at any time, for almost any reason — or even no reason at all. But there are big exceptions, especially when it comes to retirement, pensions, and age.
Here’s the key: if you were fired specifically because of your age, or to prevent your retirement benefits from kicking in, that could be illegal. Two federal laws come into play here:
- The Age Discrimination in Employment Act (ADEA) protects workers over 40 from being let go just because of their age.
- The Employee Retirement Income Security Act (ERISA) makes it illegal to fire someone simply to avoid paying out a pension or retirement benefits.
So yes, getting fired after announcing retirement may be legal in some cases — but not if the reason is tied to your age or pension. Proving that, though, is where it gets tricky.
Proof
To have a strong legal case, you’ll need more than a bad feeling. A court will want evidence showing that your firing was connected to either your age or your planned retirement.
Was your employer worried about paying out your pension? Were other older employees pushed out early? Did someone in HR or management make comments about your age or benefits? Even subtle patterns or language can be important.
If there’s any sign that the company fired you to dodge costs or to replace you with someone younger, that could be enough to trigger a legal review.
Options
If you’ve been let go, especially right after announcing retirement, your first step is to take a deep breath — then get informed.
Companies often offer severance packages. These are usually meant to soften the blow, but they often come with strings attached. Most include a clause where you give up your right to sue. That’s why experts recommend negotiating, especially if you believe the firing was unfair or illegal.
Here are a few steps to take:
| Step | What to Do |
|---|---|
| 1 | Review any severance offer carefully |
| 2 | Talk to an employment attorney before signing anything |
| 3 | Ask for extended health insurance contributions |
| 4 | Consider filing an age discrimination complaint |
| 5 | Meet with a financial advisor to reassess your plan |
You can connect with advisors on platforms like Advisor.com, which lets you browse profiles, read reviews, and book an initial consult — no strings attached.
Healthcare
Health coverage is a big concern, especially if you’re retiring early. According to Fidelity, the average 65-year-old retiree will need about $165,000 just to cover medical costs in retirement. If you’re 63, those numbers still matter.
If you’re under 65, COBRA allows you to stay on your employer’s health plan for up to 18 months. But here’s the catch: your employer stops contributing, so the premiums can shoot way up.
Not a fan of COBRA prices? You can shop for private coverage through services like U65 Health Insurance, which compares offers from companies like Aetna, Oscar Health, and Anthem.
If you’re already 65 or getting close, it’s a good time to review your Medicare options. Changes are coming in 2025, so staying informed could save you serious cash.
Finances
An unexpected job loss — even close to retirement — can be financially jarring. Experts recommend building an emergency fund to cover 12 to 18 months of expenses. That cushion gives you room to breathe while figuring out your next steps.
You might also consider safer investments. Gold, for instance, is often seen as a hedge during uncertain times. Gold IRAs offer tax benefits and physical asset backing. Some firms, like Priority Gold, even throw in bonus silver for new clients.
As attorney Marty Burbank says, an emergency fund gives retirees stability when life throws surprises — whether it’s a medical bill, home repair, or market dip. It’s about creating peace of mind, not just numbers in an account.
So if you’ve just been forced into early retirement, it’s upsetting — but you’re not powerless. The law may be on your side, and with smart steps, you can still retire on your own terms.
FAQs
Is firing after retirement notice legal?
It can be legal unless it’s due to age or pension avoidance.
What laws protect older workers?
The ADEA and ERISA protect against age and pension-based firings.
Should I sign a severance offer?
Not before reviewing it with an employment attorney.
Can I keep my health insurance?
Yes, through COBRA or private plans, but costs may rise.
Is gold a safe retirement investment?
Gold IRAs offer security and tax advantages for retirees.
