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Why There’s No Shame In Getting Retrenched (And Why It’s Important To Build A Financial Safety Net)

While it can feel very personal, most companies are simply making a tough business decision.

More than 7,000 workers were retrenched in the first half of 2023, according to MOM. This is highest since Singapore (and the global economy) rebounded after the 2020 pandemic.

For individuals who are retrenched, it can be a devastating blow. After all, it comes off as a clear indication that your company no longer finds you valuable.

Most companies, however, look at it as simply a business decision they must make in the current circumstances. Often, retrenchments will have nothing to do with your performance or your worth.

While it is completely valid to feel angry or dejected, it is by no means a death sentence for your career. If you’ve prepared a financial safety net, you can even explore bigger and better things – without having to take up the first job that comes along.

Financial safety nets can come in various forms. Savings can help you tide over short-term cash flow needs, while investments and your CPF give you the peace of mind that your retirement will be taken care of. Education is also a safety net, as having the right skills, mindset and network can help you become retrenchment-proof.

In collaboration with Endowus, we created a comic series to highlight the importance of building financial safety nets. With strong backing, we have the confidence and peace of mind to bounce back stronger.

We can strengthen our financial safety nets with low-cost and globally diversified investment portfolios on Endowus. We can also invest our cash, CPF, and SRS savings to boost both our long- and short-term investing needs.

Read Also: Understanding Endowus: How This FinTech Investment Advisor Will Help S’pore Investors Access Superior Global Portfolios At Low Cost

Why There’s No Shame In Getting Retrenched (And Why It’s Important To Build A Financial Safety Net)

Things may not always go to plan. Even if you're working hard and meeting your targets at work, you may still be retrenched due to a downturn or change in company direction

It is always painful to get retrenched after working hard — especially if we had prioritised our career over family and friends.

Regardless of how experience or competent we are, our confidence will be affected after a retrenchment

If you've been prudent, the pains from getting retrenched may be more manageable. You can revisit career and life aspirations, and plan your next move

You can fill your days with networking and skills upgrading, but don't forget to also take time off for your family and friends

Building a financial safety net means you don't have to take the first job offer. You can wait for more suitable moves, making a career transition or even build your own start-up

Once you've built your financial safety net, you can pass on this skillset to family and friends closest to you - so everyone levels up

By investing in a broadly diversified and holistic portfolio, you work towards your long and short-term financial goals - giving you greater confidence and peace of mind