The decision to retire is probably one of the most complicated a worker can make, and when you notify the company, you expect to be treated well (at least…) Especially workers who have spent many years working… Well, now there is a trend (a pretty ugly one) in which many workers who announce their retirement are then fired. Betrayal, there is no other word. Is this legal? Are there options to appeal? Let’s explain it to you.
Is it legal for a company to fire you after you announce your retirement?
Although it seems unbelievable, yes: most of the time it is legal. In most U.S. states the employment system is “at will”, which basically means the company can fire you whenever it wants, without cause and without notice. It does not matter if you have shown up for decades. And announcing your retirement, unfortunately, does not guarantee that they will let you stay until the date you had in mind.
This is why many people over 55 or 60 feel they are left without support right when they need it most… But keep in mind that not everything is allowed, there are situations where a dismissal can indeed be illegal.
It is illegal when…
There are two very specific cases where the worker has grounds to take action. The first is if they fire you right before your pension becomes yours. In that case, the company could be violating ERISA (the federal law that protects retirement benefits).
On the other hand, another key factor for filing a claim is if you have been fired due to “ageism”, and this is where the ADEA comes into play, which protects people who are 40 or older.
Does the timing of the dismissal mysteriously coincide with comments like “you’re too old for this”? Are they pressuring you to retire early? Are they replacing you with someone clearly much younger? All of that can serve as evidence.
Are there options?
Yes, even though the emotional impact is strong and you may feel they are ungrateful (especially in cases where you spent many years in the same place), there are ways to soften the financial and legal blow.
The first thing is to negotiate a severance package. Many companies offer a severance in exchange for you not filing a claim. Calculator, magnifying glass and a labor attorney, to ask for compensation, an extension of health insurance, or recognition of your accumulated benefits.
You can also consult a financial advisor to help you reorganize your retirement plan.
Of course, if you suspect the dismissal is related to your age or to avoiding your pension from vesting, save everything: emails, evaluations, messages, inappropriate comments… and if you need to file a complaint, do it, because there have already been cases where courts ruled in favor of the worker after proving the company acted with bad intent.
Is there anything you can do before retiring?
Not announcing it too early, especially if you are in a company where the environment is not good or stability is uncertain. Some things are better kept quiet!
Here is also a list of things you can do:
- Evaluate your job security, whether your position is stable, whether there are restructurings…
- Check when your retirement becomes fully vested, and then announce it.
- Always have a plan B, a financial cushion or a plan in case of dismissal.
Being fired after announcing your retirement is a hard blow. It feels unfair, cold… as if years of work meant nothing. But that does not mean your future is in danger.
With a good strategy, professional guidance, and the clarity that not all dismissals are legal, you can regain control and protect the future you have been building for so long!