I was fired from my job just 1 year before I was set to retire at 70. What happens to my retirement plan now?

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Most workers would feel good when they're just a year away from achieving a long-awaited goal like retirement. But with today's volatile job market, some people's careers are tripping at the finish line.

Take the case of Brian. He was fired at the age of 69, just one year before he was set to retire. According to a survey by the Transamerica Center for Retirement Studies [1], nearly six-in-10 retirees (58%) retired sooner than planned. Among this group, 43% cited employment reasons such as job loss (16%), organizational changes (16%), job unhappiness (14%) and retirement buyout (9%).

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Though he has ample savings, Brian is unsure what his termination means for his 401(k) and whether he should start collecting Social Security right away. Should he work with an employment lawyer to try to get a larger severance payout?

With so many questions, on top of the shock of being let go, his head is swimming.

Here's what he can do to sort out his surprise early retirement.

Luckily, Brian is in a decent place financially. Between his 401(k) and other investment accounts, he has a little over a million dollars saved.

Even then, he might be coming up a little short. Americans think they'll need $1.46 million to retire, according to Northwestern Mutual's 2026 Planning and Progress Study [2]. By contrast, Vanguard said in 2025 [3] the average retirement account balance for those 65 and older is just $299,442. That's only 24% of Northwestern Mutual's target figure.

If you find yourself facing a layoff, or are worried about being fired before retirement, you could consider working with a financial advisor to plan a budget for your new situation. Ensure that you can draw down your savings at a rate that balances having a comfortable yearly income with the knowledge that your funds will last as long as you need them to.

With Advisor.com , people seeking retirement advice can find a vetted financial advisor in minutes.

Simply answer a few quick questions about yourself and your finances, and Advisor.com will match you with a financial professional who can offer advice for your unique financial situation. From here, you can schedule an initial consultation for free with no obligation to hire.