No matter how old you are, losing your job is a difficult situation to face.
This predicament becomes all the more serious and painful if you lose a job in the years leading up to retirement. If your position has been made redundant or if you have been laid off, it may be a harrowing and stressful position to be in. The most challenging part is figuring out what to do next.
Nobody wishes to be out of a job with only a few years left until they retire. However, the reality is that it happens.
Losing a Job After 60: Retirement Planning Considerations
If you are placed in this situation, you will have two choices:
- You may opt to stop working and go into your retirement earlier than initially planned
- You can brush up your resume, go job hunting, finish the race, and retire as per your originally planned schedule
The best way to choose between your two options is to look into your financial situation. Seeking advice from a financial adviser will also help you be informed about adjusting your retirement plan and choosing the option that works best for you.
If You Choose to Look for Another Job
The first option you have is to get back in the market and find new employment as soon as possible.
If you decide to go down this path, it is still a good idea to reassess your financial situation before signing another work contract.
There is a possibility that you may not need to earn as much as you did in your previous role to reach your financial goal for retirement.
Perhaps you can even take on a part-time role while still being in a sound financial position? Or maybe now is the time to establish that side hustle you always wanted to pursue that could help you generate income?
If You Choose to Retire
On the other hand, you may be able to retire at this point already.
If you have evaluated your overall financial situation, you may already have enough saved up to go into retirement earlier than originally planned. However, if you consider this option, you need to tread lightly before making your final decision.
If you received a substantial severance pay or redundancy payout, it is wise to seek advice on how to utilise these additional funds as part of your retirement plan. For example, should they be used to pay off any remaining debt or are you better off making an ad hoc superannuation contribution?
You also have to ensure that you will be able to live comfortably in the years to come. It is imperative that you look into your forecasted expenses and see if you have enough to cover everything if you decide not to return to work. If you have medical costs, hobbies that you want to take up, or other expenses that will need to come out of your retirement fund, you have to be absolutely sure that you have enough.
Taking time to analyse your unique situation and seeking the advice of a financial adviser will pave the way to ensuring that you will still be able to have a stress-free retirement and live without worry when you choose to stop working.
If you are looking for help with your retirement plan or any other aged care financial advice, come to Central Coast Financial Planning Group. Our financial advisers aim to help manage your investments and assist you in making sound financial decisions. If you are interested, call our team on 02 4323 2877.
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.