Retrenchment is taxing, but plan well and you can avoid disaster

I'm 54 years old and have just been retrenched from the company I joined straight out of university. I had planned to work for another 11 years, so this has really messed up my plans. I am concerned about my financial future. Can you help?

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Being retrenched in your fifties is particularly tough. I have helped many people in your situation in the past. Companies often hesitate to hire people in this age category, as they see them as being too expensive or too close to retirement.

You may need to reinvent yourself and understand where you can really add value. I have found that although it is very stressful and may take longer to get back on your feet, many people look back and say it was the best thing that happened to them.

So, before you make any financial decisions, it’s important to pause and consider where you will be generating an income going forward.

Step 1: Reflect on your career path

• Why were you retrenched?

Was it because of a company-wide restructuring resulting from financial underperformance, or has your role become less relevant in the current market?

• Is your skill set still in demand?

Many industries are rapidly evolving. For example, I've worked with marketing professionals who have had to pivot from traditional media to digital skills. Today, many IT professionals are being affected by artificial intelligence and need to reskill.