Fired After Announcing Retirement at 63? California Workers Need to Know Their Rights

Source: Yahoo Finance – Moneywise

If you’re a California resident approaching retirement age and considering announcing your retirement plans to your employer, you need to understand your legal rights. A recent trend shows that 13% of older workers are forced into unexpected retirement—often terminated shortly after announcing their intention to retire. Here’s what you need to know to protect yourself.

Who This Article Is For

This guide is essential for:

California residents aged 55+ who are planning to retire within the next 1-3 years

Workers who have already announced retirement and are facing termination

Families managing assets for aging parents or relatives in California

Anyone concerned about protecting their pension rights and retirement benefits

Can My Employer Fire Me After I Announce My Retirement in California?

The short answer: Yes, in most cases. California is an at-will employment state, which means employers can terminate employees at any time for almost any reason—even after you’ve courteously announced your retirement plans.

According to research from the Urban Institute and ProPublica analyzing Health and Retirement Study data, approximately 13% of older workers entered retirement unexpectedly, suggesting they were likely forced out of their positions.

Key Facts About At-Will Employment:

Employers don’t need “just cause” to terminate you

No advance warning is legally required

Your retirement announcement doesn’t create a contract guaranteeing continued employment

This applies even if you’ve worked for the company for decades

When Is Firing After Retirement Announcement Illegal?

While at-will employment is the general rule, there are important exceptions where you may have legal recourse:

1. Age Discrimination

If your termination is directly connected to your age (rather than your retirement announcement), this violates the Age Discrimination in Employment Act (ADEA). Signs of age discrimination include:

Comments about your age or being “too old”

Younger workers in similar situations being treated differently

A pattern of pushing out older workers

Replacement with a significantly younger employee

2. Pension Interference

The Employee Retirement Income Security Act (ERISA) protects your pension rights. It’s illegal for an employer to fire you specifically to prevent your pension from vesting or to reduce their pension obligations. Red flags include:

Termination just before your pension fully vests

Firing occurs right before you reach a benefits milestone

Company has a history of terminating employees near retirement

What Should I Do If I’m Fired After Announcing Retirement?

Step 1: Don’t Sign Anything Immediately

Your employer may offer a severance package that requires you to waive your right to sue. Before signing:

Request time to review the documents (you’re entitled to at least 21 days for age discrimination waivers)

Consult with an employment attorney who understands California law

Document everything related to your termination

Step 2: Negotiate Your Severance Package

If you’re offered severance, negotiate for:

Fair compensation based on your years of service

Continued employer-subsidized health coverage until Medicare eligibility

Full pension benefits without reduction

Accrued vacation and sick pay

Positive references for future employment

Step 3: Secure Health Insurance Coverage

One of the biggest concerns for Californians forced into early retirement is the health insurance gap before Medicare eligibility at 65. Options include:

COBRA continuation coverage (typically 18 months)

Covered California marketplace plans

Spouse’s employer coverage

Negotiated employer coverage extension

Step 4: Protect Your Retirement Assets

An unexpected job loss can trigger financial planning concerns:

Review your 401(k) rollover options

Assess whether you need to delay claiming Social Security

Update your estate plan to reflect your new circumstances

Consider how early retirement affects your pension calculations

How California Probate and Trust Can Help

Forced early retirement creates immediate concerns about protecting your family and assets. At California Probate and Trust, PC, we help California residents navigate the financial and legal complexities of unexpected life changes, including:

Estate Plan Updates: Ensure your estate plan reflects your new retirement timeline and financial situation

Healthcare Directives: Establish advance healthcare directives and powers of attorney for medical decisions

Asset Protection Strategies: Develop trusts and other tools to protect your retirement savings

Family Protection Plans: Create comprehensive plans that shield your loved ones from financial uncertainty

Our experienced Sacramento-based attorneys have represented thousands of California families through major life transitions. We offer transparent pricing and free consultations to help you understand your options without obligation.

Protect Your Future Today

Don’t wait until a crisis to secure your family’s financial future. Whether you’re facing forced retirement now or want to plan ahead, California Probate and Trust, PC provides the legal guidance California families need.

Schedule your free estate planning consultation today:

Call (866) 674-1130

Visit cpt.law to learn more about our services

Meet with our compassionate attorneys at our Fair Oaks, Sacramento, or San Francisco offices

Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Employment law and estate planning are complex areas that depend on individual circumstances. The information presented here is based on general principles and may not apply to your specific situation. For personalized legal guidance regarding forced retirement, age discrimination claims, pension rights, or estate planning in California, please consult with a qualified attorney. California Probate and Trust, PC offers free consultations to help you understand your options. No attorney-client relationship is created by reading this article.