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Similar challenges can arise with stock options and equity stakes. Employees nearing the vesting milestone for their stock options can find themselves losing significant assets. These losses can set back retirement plans and financial security, especially for those in the latter stages of their careers.
Rising Medical Costs
The financial implications extend beyond retirement savings and stock options. Medical insurance becomes a major concern after being laid off. Many companies offer COBRA, which allows employees to continue their health insurance coverage at a higher cost—often much more than they'd pay on the open market. This sudden financial burden can quickly deplete savings, particularly when combined with the loss of income.