1. Adjust Your Attitude
One of the most difficult parts of forced retirement that people face is dealing with feelings of rejection inadequacy because they are no longer being seen as a valid asset by a company. For most people, self-worth is heavily linked to their careers and the respect provided by co-workers and bosses. You need to choose to deal with your forced retirement in a positive way by seeing this change in life as an opportunity to create a new life for yourself. You now have a fresh start to take on a new career path, become a consultant in your field or turn a hobby into a way to earn additional income.
2. Change Your Budget
As soon as the news of a forced retirement is announced, it is time to adjust your budget to cope with the final changes you will experience. Cut down all of the expenses you can live without, such as eating out multiple times a week, movie channels on your cable subscription, expensive cell phone plans and high car payments. Check with a spouse to find out what kind of insurance is available through his employer. Stick with the new budget until your financial situation changes.
3. Find a New Job Fast
While there may not be an opening in your chosen career field, you need to find some way of bringing in income to cover your expenses. You can find a job through a local temp service or at a retail store near you to cope while you look for another position. The important thing is to earn money instead of draining funds from your retirement accounts. Avoid the trap of taking money from your 401(k), which will cost you an extra 10 percent in early withdrawal fees, rob you of future growth in the retirement plan and cost you future funds to use. Do whatever you can to wait until you reach the age to receive Social Security and Medicare benefits before taking any funds out of retirement accounts.
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