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"Retrenched with almost zero compensation in my late 40s but..."

Friday, September 8, 2017

Serejouir said...
Hi AK,

I am a long time reader of your blog and felt compel to write in and share my own experience after reading about the reader who was jobless for almost a year.

I could not agree with you more on living prudently, avoiding unnecessary debt and investing in income generating tool. To add to that, we should also make an effort to to build up transferable skills.






I'm in my late 40s and single, earning $8-9k a month. I was retrenched in Nov last year, a week before my 25th year anniversary with the company, with almost zero compensation.

Thankfully, I have minimal debt - only a property loan that I co-share with my sis, which we managed to 1) re-mortgage a few months before my retrenchment; & 2) rented out albeit lower than our monthly loan payment at the moment.

Thankfully too, I am not into any of those designer stuff nor eating in those fancy restaurant. While I do enjoy an overseas holiday, 5-star hotel and shopping are not my cup of tea; it is also not a must have that I am willing to get into debt for, like many of my friends.

A quick calculation on the back of the envelop, gave me the assurance that my savings + investment returns can last me for 1-2 years, without having to liquidate any of my investment immediately. 

I would still be able to maintain the current lifestyle while still giving my parents their monthly living allowance.






Nevertheless, I also started to examine whether there are any other "frills"/"good to haves" that I can cut back on, so as to make my savings last even longer as well as in anticipation of a drastic pay cut in a new job.

This thought of financial security also gave me the safety net of having a bit of time on my side to evaluate what I want out of life and to get a job that I would enjoy doing, and not one that I have to work for a pay check.

While investing wisely for a secure financial future, I believe one must also look into investing in ourselves, so as to ensure that we have transferable skills that we can bring with us everywhere we turn to.






I also like what you said about keeping an open mind when it comes to job search.

I spent the last 20+ years in technology/manufacturing sector before I was retrenched.

In March this year, 3 months after I was retrenched, I got a new job in the healthcare sector, a totally new and alien industry to me. 

It was a very steep learning curve for me - job responsibilities were very different but I was able to tap on the analytical and management skills as well as various soft skills that I have picked up all these years. 

I find my current job very fulfilling and I really enjoyed what I am doing. To top it off, I not only did not suffer a pay cut but actually was offered a higher salary!






Not I say one hor. Serejouir say one.

AK says:

Big "thank you" to Serejouir for sharing his experience and advice.

Being retrenched is tough, no matter how we slice it. However, if we are prepared, we will be less badly affected.

So, remember, if 
Serejouir can do it, so can you!


Gambatte!


Related post:
Jobless for almost a year and losing my mind.

12 comments:

Laurence said...

Wow, clicked your links to your past articles and discovered you are also the Oracle of 4D. Lol.

http://singaporeanstocksinvestor.blogspot.sg/2017/01/2017-chinese-new-year-lucky-4d.html

AK71 said...

Hi Laurence,

Pure dumb luck. ;p

jasper quek said...

Hi Serejouir,
I am also in the Technology/Mfg industries; are looking at what Plan B if the Retrenchment Day come.
I have noticed on Sg Gov heavily promoting career switch for PMET to Medical.
I am impressed for new hired medical industry willing to pay >$9K.
That is very promising.

Again, thank you for sharing.

All the best and shine in your new career!

Best Regards
Jasper

Ben said...

This post goes to show that one needs to be mentally prepared for the retrenchment at any point of time. It pays to save the money for the rainy days and the saved/invested money will be handy in the difficult time of need. The volatility and uncertainty in the current work environment makes it more pressing for one to save and invest more fund for the early retirement.

Having more cash buffer will give one the absolute piece of mind when the retrenchment occurs.

Ben

AK71 said...

Hi Ben,

Some people say they have no intention of retiring. So, why prepare for retirement?

I always tell them it is about having options as not everything is within our control. :)

Roaming fighter said...

I am also in manufacturing, relocated oversea 12 years ago when company shifted out.
Company is in the progress of shutting down within 6 months, I am mid 50 now and might choose to return back to sg to spend time with family.
I am lucky to found this blog after financial crisis and learn something from AK in investment for income.
Apart from some stock bought before financial crisis may need to write off in future, my investment for income has growth over the year.
I have no liability after scrap my car 3 years back and hopefully can retire with passive income.
Thank you AK.

RF

Roaming fighter said...

I am also in manufacturing, relocated oversea 12 years ago when company shifted out.
Company is in the progress of shutting down within 6 months, I am mid 50 now and might choose to return back to sg to spend time with family.
I am lucky to found this blog after financial crisis and learn something from AK in investment for income.
Apart from some stock bought before financial crisis may need to write off in future, my investment for income has growth over the year.
I have no liability after scrap my car 3 years back and hopefully can retire with passive income.
Thank you AK.

RF

Roaming fighter said...

I am also in manufacturing, relocated oversea 12 years ago when company shifted out.
Company is in the progress of shutting down within 6 months, I am mid 50 now and might choose to return back to sg to spend time with family.
I am lucky to found this blog after financial crisis and learn something from AK in investment for income.
Apart from some stock bought before financial crisis may need to write off in future, my investment for income has growth over the year.
I have no liability after scrap my car 3 years back and hopefully can retire with passive income.

Serejouir said...

Hi Jasper,

Thanks for the well wishes.

I negelected to mention in my post that during the months in between jobs, I attended a couple of workshops by WSG (Workforce Singapore) targeted at mid-career professionals, including a resume writing course, undertook a couple of psychometric tests to better undertand myself, my strength and my weaknesses as well as spoke to a career coach in WSG. You may want to approach WSG for advice as part of your plan B?

The workshops and various WSG services are free if you are a Singaprean. So in a way, I cnosidered this my "investment return" from the income tax that I have been paying all these years. :)

Ben said...

Hi AK.

Having option, give me the comfort of a safety net in the case of retrenchment. It is the back-up plan if things goes horribly wrong. As mentioned before, I have been contemplating of early retirement. At the same time, my current work environment appears to have the sign of retrenchment. Frankly speaking, I do not have the fear feeling at all and go to work with the usual mindset. Work hard but not at the expense of my health. I do not see the need to up the mettle of doing the extreme task of putting the overtime effort in the hope of avoiding the radar of retrenchment.

Ben

AK71 said...

Hi RF,

I am glad and welcome back to Singapore! :)

AK71 said...

Hi Ben,

Yes, peace of mind is priceless. :)

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