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Weathering the Storm: How to Handle Job Loss at Different Life Stages

Financial Planning

Facing the possibility of losing your job, or retiring, can be daunting. With a proactive approach, you can manage the transition smoothly and position yourself for future success. Here’s how to take control of your financial well-being and career path.

If You’re Employed

Whether you’re looking for a career change or worried about company downsizing, the following proactive steps may help:

1. Assess Your Financial Health

  • Emergency Fund: Review your savings to determine how long you can comfortably manage without a steady income. Aim for 3-6 months of expenses. If you receive a severance, vacation pay, or unemployment, make sure you account for income disparity. 
  • Budgeting: Reevaluate your spending habits and focus on prioritizing essential expenses. Use an app if you need guidance.

2. Update Your Professional Materials

  • Resume and LinkedIn: Refresh your resume and LinkedIn profile to highlight your skills and accomplishments. Be sure to consider how AI scanners might interpret your resume. 
  • Professional Presence: Enhance your online profile to boost visibility to potential employers.

3. Expand Your Network

  • Reach Out: Connect with former colleagues, industry peers, and professional networks. 
  • Engage in Events: Attend industry events or webinars to stay connected and discover job openings.

4. Evaluate and Enhance Your Skills

  • Skill Assessment: Identify any skills or certifications that could strengthen your job market position.
  • Training Opportunities: Consider online courses or workshops to update or acquire new skills.

5. Seek Professional Guidance

  • Career Counseling: Engage with a career coach for personalized support and strategies.

If You’ve Already Been Severed

Follow the steps above and consider the following:

1. Apply for Unemployment Benefits

  • Immediate Action: Apply for unemployment benefits (if eligible) right away to receive any financial support you’re entitled to.

2. Review and Negotiate Your Severance Package

  • Terms Review: Carefully examine your severance offer and consider negotiating if there’s room for improvement.

3. Medical Coverage

  • Make sure to immediately review health coverage options and expenses. 

4. Debt Management

  • Contact creditors to discuss any necessary adjustments to your payment terms.

5. Consider Temporary or Freelance Work

  • Interim Solutions: Explore temporary or freelance work as a bridge until you secure a permanent position.

6. Prioritize Self-Care

  • Mental and physical health: Seek support from friends, family, or a counselor if you’re feeling overwhelmed. Maintain or implement strategies to care for yourself in a time of potential increased stress. 

For Those Close to Retirement

1. Evaluate Your Retirement Plans

  • Retirement Savings: Assess your retirement savings to determine if you need to adjust your plans based on your current financial situation.
  • Pension and Benefits: Review your pension options and any other retirement benefits you may be entitled to.
  • Review Social Security Benefits: Confirm your income information is accurate and review benefit amounts.

2. Explore Early Retirement Options

  • Early Retirement: Investigate if early retirement is a feasible option for you, considering any penalties or adjustments that might apply.
  • Medical: Consult your benefits department to confirm whether or not you’re entitled to retiree medical. If not, research medical plans if you’re not yet eligible for Medicare. 

3. Consider Part-Time Work

  • Bridge Employment: If you’re close to retirement but not quite ready to fully retire, consider part-time work or consulting to bridge the gap.

By taking these proactive steps, you can navigate these periods of uncertainty with confidence and prepare yourself for a successful transition, whether you’re approaching retirement or looking for new opportunities. No matter where you are, give us a call! We are available to discuss your options and help you create a personalized plan based on your situation.

 ~ Diana Sailler

The information provided in this blog is for educational purposes only and should not be considered as personalized financial, legal, or tax advice. The strategies and suggestions mentioned may not be suitable for everyone, and individual circumstances should be considered before making any decisions. Please consult a qualified financial advisor before implementing any strategies discussed. Past performance does not guarantee future results. Nothing in this blog should be construed as an offer to sell or a solicitation of an offer to buy any security. All investments carry risks, including the loss of principal.