When your redundancy is paid out, resist the urge to do anything rash. Taking a big trip or buying a new car can leave you with less capital than you need to get you through your retirement years.

It’s important to develop a clear picture of your finances — debt is a drain on your resources and it is better to get rid of it before putting money into your CPF savings. Look at your credit card and bank statements for the previous three months and break down all your living expenses. From there, you can make the necessary adjustments.

If you don’t have enough savings, even part-time work will help boost your balance and avoid eating into your funds too soon. If you have built up assets, this may be the time to live on investment wealth for a couple of years. But if you do, first seek financial advice to minimise tax.

Just as losing your job can play havoc with your finances, it can also undermine you emotionally. If your job gave you stimulation, social interaction and even physical activity, find ways to replace these things. It can be a great opportunity to decide on what you want to do in your life at this point.

The risks of social isolation grow with redundancy, so to counter this plan something, even if it is just going for a walk, or meeting friends for coffee. Tap into your social network of family and friends and don’t let yourself become isolated.

If you have to return to work, consider retraining. There are lots of government programmes like Skills Future that can help you do this. On the other hand, if you plan to transition to retirement, think about volunteering, study, taking up a hobby or getting fit.

Just like it would be with any other major loss in your life, the grief you feel from a job loss will be real grief. Recovery time can depend on factors, including what time in your life it occurs, your financial situation and the importance to you of your job — how much of your identity is bound up in your career.

Keep in mind that this period of instability will eventually end when you get back into the workforce. Don’t doubt that you will, most adults are doomed to work for life! Take some time out to re-calibrate your priorities, let the negativity slide over and keep yourself centered on the present.

Constantly and consciously take time out to keep yourself healthy and active even if you’re focused on securing that next job. The more sluggish your body is, the less energy you have mentally to deal with a challenging phase in life.

Remember, you are your best friend and motivator. Trust yourself and your own wisdom if you need to make big decisions. Never isolate yourself thinking that you’re less worthy just because you’re retrenched.

Text: Cat Rodie/bauersyndication.com.au
Additional reporting by Natalya Molok

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