Being ready to retire at 50 would be a good thing, but getting laid off in your 40's is not a death sentence. I'm 63 now, still working as an engineer, and I was laid off in my 40's, twice. In addition to the emergency fund, another great way to build some security is to keep learning new stuff. In my experience the older engineers who get into trouble are the ones who try to rest on what they know and inhabit a niche they've built for themselves. In our business knowledge evaporates and niches crumble.