By Geshy Singh

Retrenchment is the reduction of work force to cut costs and is a risk that most employed individuals face. It’s human nature to remain in a comfort zone and in denial but sadly the possibility is often taken for granted.

Preparing for the worst is by no means negative but proactive, hope for the best but prepare for the worst. There’s a lot one can do to be proactive in this world of uncertainty especially in the employment sector. Firstly one should always upgrade their skills and experience.

Take the initiative to study, participate in courses, etc. especially if the facility is available at your current employment. If not, study privately and remember this sacrifice is an investment in your career and future. Should you be back in the job market at least you will be armed with skills and it shows your future employer you have initiative and drive.

Save, save and save! One should have an emergency fund that’s easily accessible for the next six to 12 months of expenses. Think about the financial havoc you will incur if your income ceases? The debt for your bond, vehicle repayment and loans, etc. will not cease!

Your everyday living expenses for electricity, water, food, insurances, medical aid, children’s school fees, etc. will not cease! If you are living from day-to-day and not saving for an emergency, change this right now!

Did you know that some credit facilities offer retrenchment plans?

This will basically pay up the credit if one is retrenched. Some insurance companies also offer retrenchment income plans should you become retrenched and retrenchment benefits to continue paying for risk benefits, etc. We cannot avoid unforeseen life-changing events but if we are wise, we can certainly be prepared for them. Develop a wise attitude of ‘just in case’ and prepare accordingly to be safe.