At any stage in life, losing a job is an emotional experience. Even more so if you are on the verge of retirement.
Unfortunately, redundancies can be extremely common for those aged over 60. But this can completely disrupt your retirement plans and send you into panic mode.
It can be tempting to make impulsive decisions when going through a job loss. You may think about making impulsive investment decisions to grow your retirement savings but the best thing to do is to step back, take a deep breath, figure out the next steps and consider the retirement planning mistakes to avoid.
Redundancy is stressful. But take comfort in knowing that you are not alone in this struggle.
What to Do If You’ve Lost Your Job Before Retirement
Life starts at 60, so don’t lose hope! There are two main paths that you can take if you’ve lost your job before retirement.
The right option will always depend on your financial situation. A financial advisor can light the path and help you alter retirement plans to end up with the most sustainable option. Consider getting recommendations from a financial advisor to restructure your retirement plan.
Option #1: Retire Earlier Than Initially Planned
First, consider your current retirement plan. If you don’t have one yet – don’t worry! Now is the perfect time to put one in place.
If you have your dream retirement plan in place and are thinking this redundancy will ruin everything, think again.
You may need to revisit your retirement budget to ensure you will have enough money to last in retirement. But, you may be able to enjoy an early retirement without having to stress about running out of money.
According to the Australian Bureau of Statistics, the average age of retirement is 55.4 years old.
If you’re close or even past this age, and your finances are secure, losing your job may just be a blessing in disguise!
Plus, there are ways you can create income. You may like to consider a new investment opportunity or adjusting your investment portfolio to create a recurring income stream.
Option #2: Search for a New Job
For some people, early retirement may not be a financially viable option. Or if you love working, you may not want to retire yet.
For those who fall under this category, seeking a new position might be your best option.
Finding a similar job to your last may seem difficult at first but enter the process with an open mind. With years of building up experience and knowledge, you can definitely bring value to the table!
Or you may like to explore new industries. Think about what your hobbies and passions are. This may help you discover a part-time or casual role that you would enjoy.
Finding a job that you enjoy – a job that doesn’t feel like work – may mean you can spend a few more years working than you originally planned to. Along the way, you can save more money for your ideal retirement.
Navigating a new chapter in life is always tricky. So, take the time to appreciate the things you enjoy in life and focus on them!
A financial advisor can help you secure the retirement you deserve – no matter what you’re going through in life.
Do you want to secure your future?
Start the new era by working with a financial planner from Cambio Group. We offer complimentary consultations for our new clients to help them achieve financial freedom.
Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.
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