By Yahoo Finance

Copyright indiatimes

Early retirement due to job loss: This year, more than 800,000 jobs have been cut across the US, and nearly 300,000 of those losses have come from the public sector. For many of the affected workers, the layoff wasn’t just a career setback, it marked an unexpected and unplanned leap into retirement.Why Are So Many Americans Forced Into Early Retirement?Whether due to buyouts, automation, company restructuring, or personal health issues, thousands of Americans are suddenly facing the end of their working years without getting the chance to prepare emotionally, financially, or otherwise. While society often paints retirement as a long-awaited reward, the reality for many is far more complex and at times, deeply disorienting.Emotional Impact of Sudden Job Loss Before RetirementDuring the Decoding Retirement podcast, Elizabeth Zelinka Parsons, author of ‘Encore: A High Achiever’s Guide to Thriving in Retirement’, said that, “We all, of course, get identified to a degree with what we do for a living,” adding, “But if you have no time to plan for an identity bridge, I call it, or a transition, it can be really existentially threatening because we often imagine so much of who we are is tied to what we do every day,” as quoted in a report.ALSO READ: Tens of thousands set to receive surprise $250 checks — here’s how you could get yoursMost Americans Don’t Plan for Early RetirementMany American workers face a job loss earlier than planned, and most people don’t see retirement coming and do not plan for it. In fact, 70% of Americans say they want to work until at least age 65, according to JPMorgan’s Guide to Retirement, but less than 30% actually make it that far, as per a Yahoo Finance report.Live EventsThe reasons are varied, like layoffs, early buyouts, caregiving responsibilities, or health issues, but the outcome is the same: people are retiring before they’re ready. The author said, “So many life events can accelerate that date,” as quoted in the report.ALSO READ: Charlie Kirk’s books hit Amazon top 10: How Donald Trump Jr. is benefiting from his deathYou’re Not Alone in Facing Unplanned Retirement Zelinka Parsons pointed out that, “I think many people imagine they’re going through this feeling in a vacuum, and they’re the only people struggling with it. In part because we’re all told to look forward to retirement, and we imagine it’s something we should be celebrating and excited to embrace,” adding, “The truth is there’s a lot of letting go that has to happen,” as quoted by Yahoo Finance.Why Planning for Retirement Early MattersAs there is always unpredictability about our jobs and work life, she advises people to think about life in retirement well before it arrives.She explained, “It’s an ongoing evolution,” adding, “And thinking broadly about what you’re working for and what purposes will fuel your life once you’re done, sort of trading time for money, is always a valuable exercise because we don’t always know exactly what that date will be,” as quoted in the report.ALSO READ: What happens to your uploaded photos on AI chatbots? Are they really private?A 4-Step Framework to Navigate Unexpected RetirementZelinka Parsons encourages those who are facing early retirement to resist the pressure to immediately leap into action and instead focus first on the emotional and psychological aspects of the transition.She offers a four-step framework to help retirees reclaim a sense of direction, as per the Yahoo Finance report:1. Identity Bridging Reconnect with who you were before your job title defined you and explore old interests, volunteer opportunities, or ways to transfer your professional skills to something new and meaningful.2. Life Restructuring Fill the time and energy once consumed by work with areas long neglected: physical wellness, relationships, spirituality, and personal development.3. Financial Mindset Shift Instead of focusing on accumulation, shift toward strategic spending. This can be a psychological hurdle, especially for high achievers used to building wealth rather than drawing it down.4. Action and Momentum Explore, experiment, and stay curious. Whether it’s part-time work, mentoring, or learning a new skill, movement keeps energy flowing.Zelinka Parsons suggested that people must think about ways of being productive and contributing on their own terms, pursuits that may still resemble work but are chosen freely, saying, “That’s what makes leisure enjoyable, you know — when it’s in tension with work,” as quoted by Yahoo Finance.ALSO READ: AI Chatbots’ hidden cost: How your questions harm the planet through carbon emissionsFAQsHow can I prepare for retirement if I’m still working?Think about what will give you purpose beyond work and start building those activities now.How can I make retirement enjoyable?Balance leisure with meaningful activities that challenge and fulfill you on your own terms.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onHow to handle sudden job loss before retirementearly retirement planningjob loss impact on retirementfinancial strategies for retireesidentity after job lossEarly retirement after job loss tipsWhat to do if you lose your job before retirementHow to adjust to retirement earlyBest strategies for unexpected retirementSteps to take after sudden job loss(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless