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In the first few days, get the dates and documents in writing
Ask your employer or HR department to confirm your last day of employment, final pay, severance terms, the date health coverage ends, and when you can expect coverage and retirement-plan notices. Save the separation notice, benefit correspondence, pay records, and any severance agreement. The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) explains what workers should check after job loss in Important Information for Workers on Job Loss.
For a workplace retirement plan, request the Summary Plan Description (SPD) and your latest individual benefit statement. The SPD describes plan rules; the plan administrator can explain which options apply to you. Make sure the administrator has your current mailing address so you receive notices and distribution information.
- Write down the dates your job and employer health coverage end; the dates may not be the same.
- Keep copies of the severance agreement and benefit notices, and note when you received each one.
- Ask the plan administrator to explain your available retirement-plan choices and any applicable deadlines in writing.
Apply for unemployment and ask about reemployment services
If you may qualify, apply through your state unemployment agency rather than assuming severance settles the question. Unemployment eligibility and how severance affects benefits are governed by state law, so the result can differ by state and by the terms and timing of the payments. The Department of Labor’s Termination guidance describes the state-law framework; your state agency can assess your situation.
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Compare health coverage before your current plan ends
Compare the coverage start date, monthly premium, deductible, out-of-pocket maximum, provider network, prescriptions, and whether family members need coverage. A lower premium may not mean lower costs overall. Check the actual plan documents and dates before choosing.
| Option | Timing to check | Cost and coverage details |
|---|---|---|
| Eligible spouse’s employer plan | EBSA says a qualifying request generally must be made within 30 days after losing eligibility for other coverage. Confirm the deadline and effective date with the plan administrator. | Premium, network, and coverage details depend on the employer plan; ask its administrator. |
| COBRA continuation coverage | For a qualifying job-loss event, DOL says the election period is generally 60 days from the later of the COBRA notice or the loss of coverage. COBRA typically lasts up to 18 months after job loss; eligibility and circumstances can affect the result. | The plan can generally charge the full group premium plus a 2% administrative fee. Check the plan’s notice for the actual premium and coverage dates. |
| Marketplace plan | HealthCare.gov says losing job-based coverage generally gives you 60 days to apply for Marketplace coverage through a Special Enrollment Period. Check when the selected plan would start. | Premium tax credits or Medicaid/CHIP eligibility depend on household facts and the application. Compare available plans and costs for your location. |
These are different routes, not interchangeable deadlines. Start comparing as soon as you know when employer coverage ends. HealthCare.gov’s See Your Options If You Lose Job-Based Health Insurance explains Marketplace enrollment and coverage options; EBSA’s Protecting Retirement and Health Benefits after Job Loss covers spouse-plan enrollment and COBRA basics.
If you are Medicare-eligible, check Part B separately
Do not assume COBRA extends the Medicare Part B enrollment period. Medicare says the Special Enrollment Period tied to current employment coverage can run for up to eight months after employment ends or qualifying employer coverage ends, whichever happens first. COBRA is not current-employment coverage for this purpose. Medicare also warns that if you are eligible for Medicare but not enrolled, COBRA may pay only a small portion of services.
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Check your exact enrollment dates with Medicare or your State Health Insurance Assistance Program (SHIP). Medicare’s COBRA coverage guidance explains this interaction. If you are near 65, make this check promptly rather than treating COBRA as a substitute for Medicare enrollment.
Before moving retirement savings, learn what your plan permits
A job loss does not by itself determine what happens to your 401(k) or other workplace plan. Depending on plan terms and your circumstances, options may include leaving money in the plan, taking a distribution, or making a permitted rollover. A defined-benefit pension follows its own plan terms. Ask the plan administrator for the available choices, fees, deadlines, and tax information before acting; do not assume the rules of one plan apply to another.
When comparing choices, consider plan rules, fees, investment options, creditor protections, tax consequences, and whether you need access to the money. If you need help assessing tax or investment consequences, consider consulting a qualified tax or financial professional. EBSA’s Protecting Retirement and Health Benefits after Job Loss explains why to obtain the SPD and benefit statement and review plan-specific options.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Decide about Social Security using your earnings record, not the layoff alone
Social Security calculates a worker’s retirement benefit using the highest 35 years of earnings and the age benefits begin. If you stop working with fewer than 35 years of earnings, years with no earnings can enter the calculation; if you have 35 years, later earnings might have replaced lower-earning years. The effect depends on your own record. Review your estimates through your Social Security account and compare claiming scenarios rather than treating a layoff as a reason to claim automatically.
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You can generally begin retirement benefits at 62 for a reduced amount. Delaying can increase the monthly benefit through age 70. If you claim before full retirement age and continue working, the earnings test may affect benefits. Compare your official estimates with your cash-flow needs, health and longevity assumptions, other household income, and any spouse or survivor implications. Social Security Administration pages Your Retirement Age and When You Stop Work and You Can Receive Benefits Before Your Full Retirement Age explain the earnings record and claiming-age rules.
Keep a record if age may have played a role
The Age Discrimination in Employment Act (ADEA) protects workers age 40 and older from age-based discrimination in covered employment matters, including layoffs. A layoff alone does not establish discrimination. If you believe age may have been a factor, preserve relevant notices, emails, performance records, and information about how the decision was made, then seek an assessment from the appropriate agency or a qualified employment-law professional. The Department of Labor’s What do I need to know about … Age Discrimination outlines the law’s coverage.
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