Navigating Job Security: Tips for Those Over 40

Decades later the term has returned, this time in corporate boardrooms. As companies announce mass layoffs, estimates suggest mid- and senior-level executives are among the worst affected.

The World Economic Forum’s Future of Jobs Report 2025 warns that technological change, geo-economic fragmentation, economic uncertainty, demographic shifts, and the green transition could create 170 million jobs but also displace 92 million.

‘45 is the new 60’

In India there’s no official data on layoffs among those above 40, but the evidence is everywhere. A client’s husband in his late 40s was fired suddenly in January, with no feedback or warnings of being placed in a performance improvement plan (PIP). Weeks later he realised his colleagues in other countries had faced the same fate.

LinkedIn is full of ‘open to work’ badges from mid- and senior-level professionals. One human resource professional remarked on her YouTube channel, “45 is the new 60″, sparking comments such as: “I was released at 40 despite seven years of exceptional performance”, and “I am too senior for the position”. Those still employed fear being summoned for a ‘fire drill’ and having their ID cards revoked.

If you are over 40 and fear ageism could threaten your future earnings, here’s how to create a financial safety net that cushions the blow.

At the crossroads

Losing a job during your peak earning years can be debilitating. I know a few people who were planning their child’s higher education, family vacations, or strategies to clear home loans when they lost their job.

This is also a stage of life at which several unavoidable financial commitments converge: your own health, that of your ageing parents, and other family needs. Based on my experience of guiding relatives, friends and clients, I strongly believe that this is a crucial time to evaluate your financial health, especially if you don’t have a finance professional guiding you.

Ask yourself these five questions to check how well prepared you are for the potential consequences of ageism.

1. Can I talk to my family about my job?

A friend hid her husband’s job loss from their children to avoid stress. This is never a good idea. Open conversations can ease your burden and prepare family members for financial challenges ahead.

If money is tight, discuss questions such as: Can we consider reasonable alternatives for a Diwali break? Can we cut down on social spending?

2. How long will my cash reserves last?

Emergency funds are often ignored when income feels secure. But it’s crucial to always have enough money for six to eight months worth of expenses. These funds are general parked in bank accounts, sweep-in fixed deposits, or liquid funds.

Quickly assess your non-negotiable monthly expenses to see if your current cash balance or short-term FDs will suffice. If not, it’s time to start building up an emergency fund.

3. Can I monetise any idle physical assets?

Do you own an ancestral home or a flat in another city? Could it be rented to generate extra source of income? If not, can it be sold? Now is the time to let go of non-performing assets and emotional attachments.

4. Can I take a loan against my insurance policies or PPF/EPF balances?

If your financial investments aren’t sufficient to meet crucial goals such as your children’s higher education or paying off a home loan, consider taking a loan against your financial assets such as PPF and EPF balances, or traditional life insurance plans. Each option has different eligibility criteria and formulas to determine maximum loan.

5.Am I willing to take on ‘bridge jobs’ or pivot my career?

If you feel you are likely to lose your job, it’s time to ask:

• Am I ready to refresh my resume and apply for jobs?
• Am I willing to accept a pay cut and adjust my lifestyle?
• Do I want to escape corporate politics and pink-slip anxiety?
• How can I leverage my skills and network?
• Am I ready to explore entrepreneurship?

The answers to these questions must come from you, not social media noise. You have to be your own Dr. Robert Neil Butler.