Late-career layoffs are on the rise. Over the last 2 years, an unprecedented number of companies have laid off workers by the thousands. As a result, I’ve seen an uptick in candidates for my consulting business who are 50-plus and either recently laid off or expecting a pink slip soon.
I’ve written before about the fact that older workers are easy targets for layoffs. They make more money, and many aren’t comfortable with new technologies, like AI. As a result, it’s easy for companies to claim that these layoffs are related to budget shortfalls or performance issues–even in situations where ageism is the real cause.
Considering Your Options After a Late-Career Layoff
What can you do if you find yourself on the receiving end of a late-career layoff (or if you make the semi-voluntary choice to take a buyout)?
For my candidates who’ve experienced a late-career layoff, I always make sure they start by assessing their options. If you’re in this situation, you’ve basically got three choices: look for a new job, take a full early retirement, or start your own business. Let’s take each of these in turn.
Option 1: Look for a new job
This may seem like the most obvious choice, especially if you’re under 60. You’re not eligible for Social Security or Medicare, so you may still need an active source of income and health insurance. And although you might have to take a pay cut to return to the workforce, some kind of paycheck is better than none at all, right?
Well, job hunts can be extremely challenging for older workers. Those who are 55 and over face longer job searches and are more likely to be part of the “long-term discouraged” workforce: people who have given up on a job search due to lack of progress.
There are various reasons behind these issues. Age discrimination is one. Numerous studies have found that many hiring managers pass over older workers just because of age. Career level is another. Older workers are more likely to be looking for senior-level positions, which are simply less common. And pay is still another. Older workers are typically more experienced and therefore higher-paid, but most companies want to hire as cheaply as possible.
Option 2: Take a full early retirement
Particularly if you’re old enough to draw Social Security or enroll in Medicare, or you took a nice buyout, this may seem like the best choice. You were probably planning to retire in just a few years anyway. Why not do it early and enjoy some extra leisure?
Proceed cautiously. First, early retirement can mean running out of money. You’ve probably been saving for retirement with a target date in mind. Move that up by a few years, and your savings may not stretch far enough to provide a good quality of life, especially in your final years. You might have to take unexpected steps–such as downsizing or moving to a new city–to make ends meet.
Full retirement, especially early retirement, also comes with potential health pitfalls. For many people, work is a key source of fulfillment, identity, socialization, and mental and physical activity. Take it away, and the risk of both physical and mental health issues increases by up to 40%. Men are especially vulnerable to increased heart disease, depression, dementia, and even early death immediately following retirement.
Option 3: Start your own business
As you might guess, this is the option I recommend. Take a late-career layoff as your opportunity to become an entrepreneur, and you open up an entire range of possibilities. It’s really the best of both worlds. On the one hand, you continue to earn income and stay active mentally, socially, and physically. On the other, you gain the flexibility and empowerment of being your own boss.
Franchising: the Solution to Thriving After a Late-Career Layoff
In particular, I often recommend executive franchising to candidates who’ve come to me after a late-career layoff. Individuals who are in their 50s or 60s, especially with a history of leadership in the corporate world or even in nonprofits or the military, have a wealth of transferable skills for this role.
At this stage of your career, you likely also have some financial resources you can tap to help get a business off the ground. The same money you would have burned through in early retirement can actually be used to expand your financial potential and build additional wealth.
Executive franchising also offers a nice compromise between full-time work and retirement. Once an executive franchise is up and running, you only have to invest 8-10 hours per week to keep earning a full-time income. You can use your remaining time to travel, deepen your relationship with your spouse, play with the grandkids, pursue your hobbies, volunteer, or even start a consulting business (like I did!).
Overall, an executive franchise can provide the flexibility you want for your golden years while enabling you to finish out your career on your own terms. (And don’t worry: if you have a shorter financial horizon and can’t wait for an executive franchise to become profitable, there are franchises for you, too.)
I’ve Been There, and I Can Help
If you’ve experienced a late-career layoff, or you think one is on the horizon, I’m here for you. As a franchise consultant, I can offer personalized guidance to help you find your franchise fit. I draw on my own experience as an experienced corporate executive who became a franchisee. And yes, I had a late-career layoff in there, too.
It’s not too late for your second act. Don’t give up on what brings you fulfillment–the final years of your career can actually be your best. Book a call with me today to find out how!
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