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The Shock of Unemployment in Your Later Years 

Unemployment is always a shock. During the recession a few years ago there was widespread business closure across all sectors and the unemployment figures almost doubled to a peak of over 10%. The US Economy has recovered in the last years but even though the figures have fallen to around 5% with regional variations that does not mean that no one is not getting called into the office to tell them they are no longer required.

If you are still young then with a buoyant economy there should be opportunities to get something else. It helps to be well-qualified sometimes although some businesses are reluctant to employ anyone who seems over-qualified for the position. That is a problem at times because people who lose their jobs in middle age and beyond have a unique problem. Those with many bills to pay and perhaps significant existing debt may look for anything just to be able to meet their obligations.

Age Discrimination?

A study from Boston College identifies the over 55 age group as those in most difficulty of getting a job after they have been made redundant. Figures back in those recession years suggest that the over 55s took an average of 10 more weeks to find a new job than the others. The Urban Institute indicates that despite the extra experience that the over 55s can bring they were 20% less likely to get a job than those between 25 and 34. It is hard to prove age discrimination of course.

Serious Implications

The implications of unemployment are far more severe for those within ten years or less of retirement. They are too young to retire and are in danger of falling behind in their retirement savings when they spend significant periods unemployed. It can take years to recover financially and older people do not have those years. Postponing retirement is one solution yet as other statistics reveal the number of people with significant debt in the USA is alarmingly high. The place that many people have turned and still do is their credit cards. Often these cards are significantly supporting their ordinary household spending. It is a short term solution with a high rate of interest applied to the month end balance. You should look to economizing as well as paying off this expensive balance with a personal loan. If you become unemployed then that will be more difficult of course though short term loans can be approved for those with some form of income.

 For every month that someone around 60 remains unemployed they are losing the growth their normal monthly retirement saving will earn. Compound interest is an ally to those who save for a long period but in the short term it is of little help. The answer for everyone, even if they do not expect to become unemployed is to have a contingency plan just in case, and that means an emergency fund.

Budget Living

Those who have lived their lives with a budget that guarantees a monthly surplus will be in decent shape even if the unexpected happens in later life and they lose their jobs. Unfortunately in the USA this is a minority. Many people are carrying debts, the most common and expensive being credit cards, and have little in the way of savings. If they are using their credit card to support their lifestyle they are overspending and should address the problem immediately. It can be done. There are online lenders who will approve applications for as long as the applicant appears able to make all the installment repayments each month for the full term of the loan.

Such a loan is far cheaper than carrying credit card balances so the idea of the loan is to pay off the balance and not allow the credit card balance to grow once more. That is just part of the process of getting control of finance to provide the opportunity to save and be in a position to handle something unexpected. If that is losing your job in later life then its impact will be minimized. If you have the discipline to organize yourself your chances of getting another job will surely improve as well?

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