Retrenchment in South Africa – preserve your pension
The reality of retrenchment has hit in South Africa despite the fact that our financial markets have weathered the global economic crisis better than their foreign counterparts.
However, if the unthinkable has now happened to YOU, here are four key coping strategies to put to work immediately.
Retrenchment strategy 1: Understand your emotions
Losing your job takes an axe to the roots of your existence. It has implications in every area of your life. For this reason retrenchment effortlessly retains its place as one of the Top 10 Stressful Life Events you can encounter.
Retrenchment takes on an even more ominous face in an economic downturn because new career opportunities seem so thin on the ground.
The bottom line to remember is that you are dealing with a loss equivalent to the death of your life partner or loved one. Understand the process of dealing with a life-changing event so that it does not take you by surprise.
Retrenchment strategy #2: Give yourself time
Acceptance is the Holy Grail at the end of the grieving process and it takes time to regain any sense of serenity.
Be gentle on yourself. You are unlikely to spring out of bed ready to attack the job market on Day 1 of your forced sabbatical. While you don’t want to drown in despair, do give yourself permission to come to terms with your changed circumstances.
Retrenchment strategy # 3: Look for opportunity
Retrenchment is an involuntary life interruption. You are not expected to welcome it, but it will pay dividends to look at it as a self-development opportunity. This may be the jolt that catapults you into exploring options you would not have considered from the safety of salaried employment.
There are many options available to you so make the most of this time to align your career choices with your long-term life goals.
Retrenchment strategy # 4: Get financial advice
This is where a Certified Financial Planner professional can come in handy. Long term financial strategy may not be the first thing that springs to mind when you are retrenched. That’s normal. After the initial punch-to-the-gut sensation wears off most of us focus on the most immediate implications – cancelling the car service that’s booked for next week and telling the folks we won’t be coming to the coast for Christmas.
Soon enough, though, you will face the big picture stuff about retrenchment packages, tax implications and investment strategies. Assess your cash-flow position and adjust your current lifestyle to buy time in the short term, while you make considered decisions about the future. Get professional financial advice tailored to your personal circumstances now and it will pay off in the years to come.
Retrenchment summary: where to from here?
Getting retrenched is never going to be easy. Maintaining a positive mindset is the most important skill to master. Then you can focus on your financial plans and your next career move.
Next step: read more about your financial options on retrenchment.
Or (if you haven’t done so already) – Contact Us
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