Good morning, Retirement Starts Today Community. Welcome to "Every Day is Saturday," the newsletter reminding us that in retirement, every day is Saturday (including Thursday mornings).​​​

I recently had the privilege of being a guest over at Earn & Invest. We had a great discussion on a topic that is crucial yet often overlooked: "How to Mess Up Retirement." Click here to listen!

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Can you be fired after announcing your retirement? It’s a question that raises eyebrows and stirs concern for anyone nearing the end of their career. A recent article highlights the legal and financial implications of being terminated after sharing retirement plans, and it’s a scenario more common than you might think.

Employers often operate under at-will employment laws, giving them broad rights to terminate employees, even after a retirement announcement. But what does that mean for you? Understanding protections like ERISA and the Age Discrimination in Employment Act can make all the difference in navigating this tricky situation. It’s not just about legalities—financial stability, severance packages, and health insurance come into play too.

On top of that, announcing retirement at the wrong time could mean missing out on potential benefits or buyouts. Striking a balance between professional courtesy and protecting your financial future is essential. When it comes to planning for life after work, the timing and approach of your announcement could impact everything from your wallet to your peace of mind. Click here to listen​

Outline of This Episode

• (0:00) Introduction
• (0:29) Yahoo Finance article discussion
• (1:11) At-will employment laws explained
• (2:08) Legal considerations: ERISA and age discrimination
• (3:57) Financial steps after unexpected termination
• (7:47) Protective measures to stay on track
• (10:05) Client story: Announcing retirement too early
• (12:12) Listener questions: What to retire to
• (13:04) Crafting a fulfilling retirement plan
• (17:27) Taking small risks to find post-career purpose

Can You Be Fired After Announcing Retirement?

Announcing your retirement might seem like a professional courtesy, but it could have unintended consequences. At-will employment laws in many states allow employers to terminate employees for nearly any reason, as long as it’s not illegal. This means that even a thoughtful retirement announcement can sometimes lead to unexpected termination, creating uncertainty during a critical time.

Legal protections like ERISA and the Age Discrimination in Employment Act offer safeguards in specific scenarios. For example, if termination is aimed at preventing pension benefits or discriminates against older employees, legal action may be an option. However, proving these violations can be challenging, making it essential to be aware of your rights.

It’s important to consider the financial implications of early termination. From severance packages to potential unemployment benefits, navigating these unexpected changes requires careful planning. Consulting with an employment lawyer or financial advisor before signing agreements can help ensure you’re making the best decisions.

Deciding when to announce your retirement is a balance between professionalism and protecting yourself financially. Announcing too early may impact severance eligibility or expose you to unexpected risks. Knowing your situation and timing your announcement carefully can help mitigate potential fallout.

Protecting Yourself Financially If Terminated

A sudden termination near retirement can have significant financial consequences, but there are ways to stay on track. Evaluating severance packages and consulting a professional before accepting can ensure you’re making informed decisions. Additionally, unemployment benefits might be available, though severance or pensions could impact eligibility. Delaying Social Security benefits is also a smart way to preserve long-term financial health.

Health insurance is a critical factor after termination. If employer-subsidized coverage ends, COBRA or marketplace insurance may serve as temporary options. For those over 65, Medicare enrollment can help bridge the gap. Avoid quick decisions with retirement funds, as moving money from a 401(k) to an IRA may create withdrawal restrictions if you’re under 59½. Carefully weigh all options to maintain financial stability during this transition.

Lessons From a Client’s Early Retirement Notice

Sharing your retirement plans too far in advance can backfire, as one of my clients learned the hard way. A highly valued employee, he gave nearly two years’ notice to help his employer transition. When layoffs and retirement buyouts were announced just before his planned retirement, he was excluded from the benefits because his employer knew he was already leaving.

This experience highlights the risks of announcing retirement too early. Employers may view you as a low priority for incentives, even if you were acting in good faith. The financial impact of missing out on a retirement buyout or severance package can be significant, making timing a crucial decision.

Balancing your desire to support your team with protecting yourself financially is vital. While it feels good to give your employer plenty of notice, being too generous with your timeline could cost you. Understanding your employer’s policies and approaching the conversation strategically can make all the difference.

Ultimately, there’s no universal rule for the right timing. The best approach depends on your circumstances and relationship with your employer. Go with your gut, but ensure you’ve considered all potential outcomes before making your decision.

Retiring to Something: Building a Purposeful Future

Retirement isn’t just about leaving work—it’s about stepping into a fulfilling next chapter. Without a clear plan, many retirees struggle to find purpose. Creating an ideal retirement day or week can help visualize your future, blending leisure and meaningful activities that bring joy and structure. Identifying what you want to retire to—hobbies, volunteering, or new experiences—can make this phase exciting and rewarding.

Experimenting with new activities before retirement provides valuable insights. Small risks, like trying a class or volunteering, help determine what you truly enjoy. Balance is key—too much unstructured time can feel overwhelming. By combining relaxation with purpose-driven activities, you can create a retirement that feels both satisfying and very energizing.

Resources & People Mentioned

• ​The Retirement Podcast Network​
• ​Yahoo Finance Article by Christy Bieber – Discussing legal and financial challenges of being fired after announcing retirement
• ​Freedom for Fido – A charity building shelters and fences for dogs in need​​

Retirement Starts Today (the book) is Available!

My new book, Retirement Starts Today: Your non-financial guide to an even better retirement, is available! To order Click here​

That's it for our three hundred and sixty-third installment of "Every Day is Saturday." As always, reply to this email with your retirement questions and you might hear them featured on the show! I read and respond to (almost) every email.

Have a great "Saturday",
- Benjamin Brandt (your humble host)

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