Job loss is never easy – but it’s especially difficult when it happens well into a long career in which you’ve gained expertise and generated most of your income over decades. Many of us expect to feel more stable and secure later in life…But an unexpected job loss can completely change that outlook.
The emotional and financial impact of late-career job loss can be a significant challenge: there is a loss of income certainly, but there’s also a greater risk of losing a sense of identity and sense of purpose. It’s important to recognize the emotional toll of job loss that can impact one’s financial decisions – and vice versa.
For many individuals, dealing with job loss can be a great catalyst to resetting the playing field. Emotional awareness is the first step to understanding your new deck of cards. In this blog post, we’ll dive deeper into coping with the emotional impact of job loss, the financial considerations of such an event and developing a successful plan for long-term financial stability.
Understanding the Emotional Toll of Job Loss
Dealing with job loss deep into your career can be devastating. The emotional impact of job loss can be significant and often affects an individual’s overall wellbeing. As a result, many workers find themselves managing a late life crisis. Let’s explore the psychological impact of job loss late in life.
Coping with the Psychological Impact of Late-Career Job Loss
Once the dust settles, many workers might tell themselves, I’m fine. Coming to terms with the true emotional toll of having the proverbial rug swept out from beneath them may take several days, weeks, even months. The truth is that losing a job can create feelings of uncertainty, anxiety, and even depression. Acknowledging these feelings and learning to manage them is the first step. Consider finding ways to stay engaged with your community, such as volunteer work; in addition, try pursuing hobbies and maintaining a routine. Even seeking support from family and friends can help.
Managing Stress and Anxiety After Losing Your Job
Don’t forget to take care of yourself physically, emotionally and mentally. Many people find that exercise and mindfulness techniques like meditation can help them better manage their stress and refocus their thoughts. For others, seeking professional support through therapy or counseling can also be beneficial.
Navigating the Emotional Challenges of Career Transitions
There’s no shame in admitting the emotional challenges associated with job loss late in life. How many times have you looked at your neighbors, or your coworkers, and thought, Wow, they really have it together!
The reality? No single person truly has the game of life figured out. We’re all just doing the best we can!
In summary, there is no reason to be ashamed of late-in-life job loss. Be honest with yourself: Navigating the emotional challenges of transitioning to a new career in late-life can be daunting. That said, starting a new career can be a unique opportunity to turn over a new leaf and reevaluate your life. Consider taking time to reflect on your goals and values, seek support and guidance from family and friends, and develop a plan to achieve your career and life-balance goals.
Overcoming the Financial Challenges of Late-Career Job Loss
Many individuals may not be financially prepared for job loss late in their life. As a result, it may be difficult to recover, regroup and move forward.
Assessing Your Financial Situation After Job Loss
The first step in managing the financial impact of job loss is to better understand your financial situation. For instance, do you know how much you spend month-to-month? If you are a W-2 employee, you’ve probably become accustomed to that “Net Pay” line and have learned to let all of those deductions fly on autopilot. In other words, if your gross salary was $150,000, you probably don’t need $150,000 to cover expenses. If you are in between jobs, it’s very similar to, well, being retired. In retirement, you don’t have Social Security Taxes & 401k deductions which together could be in excess of 20% of your gross income. So, take a moment to assess what you REALLY spend and how much income you need until the next chapter of work (or semi-retirement) begins.
Creating a Budget and Managing Expenses During Career Transition
In order to find out what you REALLY spend…yeah…well…it’s time to do one of those icky things; creating a budget. Having a robust budget and visibility over your expenses can be particularly crucial during a career transition later in life. Think about areas where expenses can be reduced and prioritize essential expenses such as housing, food, and healthcare. Sometimes individuals may take this opportunity to downsize to a smaller home or reduce their transportation costs.
Strategies for Bouncing Back After Late-Career Job Loss
Despite the emotional and financial challenges, it’s important to remember that losing your job late in life isn’t the end of the road. Once you find yourself ready for new challenges, there are countless strategies and resources available to help you bounce back and find new and exciting career opportunities.
Identifying Transferable Skills and Exploring New Career Opportunities
The first step in looking for new opportunities? Conduct an audit of your own skills. Consider which skills might easily transfer to other career opportunities and whether you might need to learn something new.
Networking and Leveraging Professional Connections
When managing a late-in-life career, networking can be a critical step toward a new opportunity. Try reaching out to your professional network, attend industry events or simply stay active on professional platforms like LinkedIn. You never know when one of your connections may have the perfect new career opportunity – or recommendation.
Enhancing Employability through Skills Development and Education
As Jeff Bezos says: “In business, what’s dangerous is not to evolve.” It’s never been more true, especially for individuals and their own skill sets. Most skills have a shelf life of five years, according to the World Economic Forum. You may find yourself struggling to meet each company’s checklist of skills, especially if you were loyal to one company prior to your job loss and didn’t have an opportunity to maintain your skills. Many individuals will take certifications or new courses to update existing skill sets – or simply demonstrate their continued expertise.
Tips for Long-Term Career Planning and Financial Security
Unexpected job loss can seriously disrupt any carefully laid out long term plans for you and your family’s future – and leave you struggling to recover. That’s why you always need a plan B to navigate challenges with job loss.
Create a Plan for Retirement and Financial Future
For many individuals, dealing with job loss late in life can spark a late life crisis. How will you meet your retirement goals? How will you move forward to live the life you’ve always dreamed?
The first step: don’t panic. And the second step is to build a new plan for your retirement to best secure your financial future. This plan should include a thorough assessment of your current financial situation, including your savings, investments, and retirement accounts. It’s important to develop a realistic budget and evaluate your options for generating income during this time as well.
Is It Time To Consider Semi-Retirement…or Full Retirement?
Perhaps your late-career job loss was just the catalyst you needed to move on from a situation you weren’t completely in love with anyway! Maybe it is time to start a new chapter of working only as much as you need to, a little bit – or not at all! Maybe the most important part of this transition is understanding what YOU NEED.
What Is Semi-Retirement, Anyways?
Maybe you’ve been going 100 mph for forty years and you are just not ready to slam the brakes. Have you ever considered working part-time to help ease yourself into the next chapter or simply supplementing your retirement income? Having multiple sources of income can be a simple way to ease late life career transitions. Part-time or freelance work can be the most straightforward way to add another stream of income to your budget. However, be sure to consider potential tax implications as well. Many jobs in the “gig economy” do not include benefits…and sometimes don’t include tax withholding either!
Balancing Short-Term and Long-Term Financial Goals
When you lose your job, you might find yourself immediately focusing on your short-term financial needs. However, it’s equally important to keep long-term financial goals, such as retirement, in mind. Balancing both of these objectives can help ensure financial stability over the long term.
Developing Strategies to Thrive in Late Career and Retirement
The goal should never be just to survive during your late career – you can thrive, too. Thinking about strategies to grow in your late career and retirement is crucial. This may include identifying new opportunities, networking with colleagues and peers, or exploring alternative sources of income. With the right planning and strategies in place, it’s more than possible to overcome the challenges of late-life job loss, spark real change and achieve long-term financial security.
Resources:
https://www.cnbc.com/2020/05/13/how-to-cope-with-the-emotional-toll-of-losing-your-job.html
https://www.mindtools.com/ap6w33w/how-to-recover-from-job-loss
https://www.helpguide.org/articles/stress/job-loss-and-unemployment-stress.htm
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4553243/
https://www.apa.org/monitor/2020/10/toll-job-loss
https://www.helpguide.org/articles/stress/job-loss-and-unemployment-stress.htm
