There are number of ways that a person might be subject to forced retirement. Also known as involuntary retirement, the result is the same. An employee has their employment terminated due to a layoff, for health reasons or a disability. There are some circumstances under which an employee may have grounds for legal retaliation, but to investigate those you would need to speak with an attorney specializing in employment law.
One of the most significant problems faced by someone who is the victim of forced retirement is how it affects their retirement plans. In addition to the potential loss of numerous benefits, they can no longer contribute to their employer based pension plan. With no income the household may have to make major adjustments to the budget.
In some cases the employer may offer a severance package to the employee. If the individual is close to retirement age then the offer may be sufficient to make up for the anticipated loss in income and savings. It is worth noting that older employees are more likely to be targeted for forced retirement because they earn more than younger workers.
Even if you have been subjected to an involuntary termination this doesn’t mean you can’t search for, and find, work at another firm. The advantage of an older worker is that they have many skills that can be well used by another firm. A new retirement account may be opened and the funds from older plans rolled over. This will allow you to continue to save for your planned retirement, even if it is at a lower level than anticipated.
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