What to do if you have a loss of income through redundancy, early retirement or another life change
Circumstances change for all of us, and this can sometimes mean a loss of income which can be especially worrying. There are many reasons you might experience a loss of income, through a change in hours, redundancy or job loss, early retirement, illness, or other leave of absence from work. There are a few things you can do if you're in this situation to help assess what this means for you and start to think about next steps:
- Review your finances
This will allow you to assess your income and spending for the immediate future, and whether any redundancy, retirement or pay package, or any savings will cover what you need. We know it’s hard, but it might also help you identify any items you can cancel or do without.
- Draw up a budget
This should help you feel more in control with a spending plan in place for the 6 – 12 months ahead. Organisations like Citizens Advice and MoneyHelper have detailed budgeting tools that can help you with this.
- Check your eligibility for benefits
If your income has changed, you may be eligible for benefits like Job Seeker's Allowance (JSA), or other support if you're unable to work. Check the Government website for guidance on different benefits and eligibility.
- Seek more information
Consider consulting your employer’s trade union or employee representative. Citizens Advice might be able to provide some immediate guidance on your employment rights. It might be worth consulting the Government website on work and pensions, or an employment specialist website like ACAS - Acas | Making working life better for everyone in Britain.
- If your plan is to look for work elsewhere
Focus on updating your CV, and planning your job search – consider job websites, recruitment agencies, social media, companies’ own websites, newspapers and magazines.
Send out your applications and prepare for your interviews.
- Try to look after yourself
These situations can be overwhelming – try to talk to someone about anything you’re struggling with (a family member, close friend, or healthcare professional). Try to make sure you eat properly and get enough exercise and sleep (we know it’s easier said than done).
If you're worried about money and struggling with your mental health, organisations like Mental Health & Money Advice can offer advice, support and further resources.