How To Deal With Job Loss When Approaching Retirement

When many people picture retirement, they think of finally having time to do things they couldn’t do when employed. You may consider taking a vacation, learning a new language, or volunteering for things you are passionate about.

While it’s possible to do such things once you retire, it might become more challenging if you lose your job a few months or years before. After all, you might not feel fulfilled or have enough funds to enjoy your retirement.

You can regain a sense of security and protect your future even if you lose your job on the brink of retirement. Let’s explore several ways to handle such a situation.

 

☑️ Try to Stay Positive

Job loss is often frustrating, but it can affect your mental health a lot if it happens near retirement. After investing your time and energy into your career, you wouldn’t want anything to jeopardize it.

Maintaining a positive outlook after a job loss can keep you going. Talk to your family and friends about what you are going through and lean on them for support. Even if you don’t want them to worry about you, their advice and encouragement might be precisely what you need.

If you are in a fast-growing industry, getting a job might still be possible when approaching retirement. Apply for open positions and be optimistic about getting feedback. You can also ask your colleagues to inform you if they learn about an opportunity.

You’ve applied for a job and gotten an interview, but you are now dreading it. The recruiter will likely want to know why you lost your previous job. They may express their doubts about hiring someone nearing retirement.

Staying positive will help you prove to potential employers that you are confident. Focus on the value you’ll add to the company during your short tenure. Ensure recruiters recognize your value by highlighting your main achievements.

 

☑️ Update Your Resume

Many people don’t update their resume when nearing retirement. However, you must do it if you lose your job and want to return to the workforce.

Improve your chances of securing a job by creating an impressive resume. Highlight your work experience and include all your skills. Mention the certifications and awards received throughout your career.

 Other tips for revising your resume when approaching retirement include:

• Ensure you use a functional and modern format
• Quantify your achievements
• Create a catchy professional summary
• Update your contact details

While you may have a lot of work experience, competing with younger job seekers may be difficult. Stay competitive by updating your current skills and gaining new ones.

Attend workshops to hone your abilities and participate in conferences. Besides, expand your network and stay active in professional organizations.

 

☑️ Assess Your Financial Situation

It’s not always a guarantee that you will land a new role when nearing retirement. You may even find the job search process quite hectic and choose to retire early. If you decide to do so, you want to ensure your finances are in check to avoid struggling.

Evaluate your financial situation by checking how much you have in your savings and retirement accounts. Find out if your retirement plans allow you to withdraw your money early. You should also determine how much you will likely lose.

Investments made during your employment years will help you worry less about job loss. Calculate how much you can earn from them annually. After that, quantify your expenses and determine how you will cover them.

Assessing your financial situation will help you plan your future. You can identify lucrative investment opportunities and use them to earn passive income. If you have limited finances, you may also consider offering consultancy services to make some money. Part-time work and mentoring might also be viable options.

Peace of mind is another perk of assessing your finances after losing your job. Instead of worrying about how you’ll survive, you will make a great plan if you know how much you have. It will also be possible to budget and cut your expenses where necessary.

 

☑️ Determine Your Financial Options

After losing employment, your boss may offer severance pay. You may also be entitled to unemployment benefits if the loss wasn’t your fault.

Identify the financial benefits you can get after losing your job. If your employer doesn’t offer severance pay, you can get legal help to negotiate it. If the amount is significant, you may use it to start a business or add it to your retirement account.

After losing your job near retirement, you can use your assets for income in many ways. For example, you can rent out your home or land. If you have a recreational vehicle or boat, you may also lease it on peer-to-peer rental platforms.

Retirement gives you the chance to explore your hobbies. If you can make money from them, why shouldn’t you explore the opportunity?

If you are an animal lover, for example, you can sit and walk other people’s pets for money. You may also monetize your hobbies by offering online courses and posting social media content.

 

☑️ Get Professional Advice

Navigating job loss on your own may be overwhelming since there is a lot to plan and critical decisions you must make quickly. Consulting professionals give you access to the information you need for sound career and retirement decisions. It allows you to make the most out of your current investments.

 Consult a financial advisor for personalized help regarding your situation. They will help you:

• Minimize investment risks
• Manage your assets
• Maximize your retirement income
• Plan your estate

If you want to return to the job market, you may benefit from a career coach. Such an expert will help you deal with the transition into unemployment. They will assess your skills and identify the areas needing development. A career coach also guides you as you reflect on your career and what you want to achieve before retiring.

 

Deal With Job Joss Gracefully

Losing your job near retirement isn’t pleasant, especially if you still have unmet career goals. Luckily, you can secure your finances and cover your needs with a good plan.

Lean on your support system during this challenging time and consult experts when necessary. You could also invest in personal development and networking to stay relevant in the job market.