We’re living in a time of major shifts. AI and automation are transforming industries, companies are tightening budgets, and we’re seeing more headlines about large-scale retrenchments. Even when you’re doing your best to upskill and stay relevant, the truth is that no job is ever completely secure.

But while you can’t always predict what’s coming, you can prepare for it. Whether you want to build a financial safety net just in case, or you’re already facing retrenchment, here are 8 steps to help you protect your future.

1. Prioritise an emergency fund

We’ve stressed the importance of an emergency fund in several blogs – even if it’s the only type of safety net you can afford, it’s essential. Contribute a set amount from every month’s salary to a savings account. If you receive a retrenchment package, put enough into your emergency fund to cover at least 3 months of your essential living expenses, and invest the rest to grow your money.

Having emergency savings can ease the pressure and give you breathing room to make better decisions. It buys you time to find the right job, so you don’t take the first offer that comes along out of desperation.

2. Protect your income and cover your debt

Income protection and debt protection insurance are also safeguards that you should invest in while you’re employed. They are designed to protect you from loss of income by replacing part of your salary and covering your debt repayments while you get back on your feet. If you haven’t reviewed your financial protection yet, now’s the time to do so.

• Income protection insurance pays you a monthly income if you can’t work due to illness, injury, or retrenchment.
• Credit life insurance settles your debt or continues loan repayments if you’re retrenched, disabled, or pass away. Many personal loans or credit cards include credit life insurance – check your terms or speak to your bank.

With Nedbank Income Protection, you can rest easier knowing that if you can’t work due to retrenchment, illness, or injury, you’ll still have the money to keep your payments on track every month without having to dip into your savings.

3. Update your CV

If you’ve been in the same role for some time, your CV might be outdated. You may not have looked at it since you first landed your job. Take time to refresh it with your most recent achievements, certifications, and responsibilities. Tailor your CV for the type of roles you're interested in now, and consider asking a friend or even an ex-manager or colleague to review it for feedback.

You might also want to update your LinkedIn profile and reconnect with former managers, colleagues, and classmates who could alert you to upcoming opportunities.

4. Claim UIF if you’re eligible

If you’ve been contributing to the Unemployment Insurance Fund (UIF) through your employer, you may qualify for temporary financial relief. Even though the payout will be significantly lower than your salary, UIF can give you a financial buffer while you look for your next opportunity.

The process can take time, so it’s important to apply as soon as you’ve been retrenched. You’ll need the necessary documentation from your former employer, including a UI19 form.

5. Get back into the job market

Start checking reputable job sites daily, such as Careers24, PNet, Indeed, and LinkedIn. Set up job alerts with your preferred keywords and keep an open mind when it comes to short-term or contract work.

You may need to apply for several roles before you land interviews, so don’t get discouraged. The job market is competitive, but the more consistent and proactive you are, the more likely you are to find a good fit.

6. Cut unnecessary expenses

Now is not the time to keep going as usual. Go through your budget with a fine-tooth comb and cut spending wherever you can. Cancel or pause subscriptions and memberships that you don’t need right now. Switch to more affordable brands, limit luxury buys, and find ways to cut back on entertainment. It may even come down to simplifying meals.

If your budget is still tight, contact your bank or credit provider early. You may qualify for payment relief or restructuring – and asking for help sooner rather than later is always the better option.

7. Sell what you don’t need

Decluttering isn’t just good for your space – it can also bring in some much-needed cash. If you have items in good condition that you no longer use, it might help to list them on online platforms.

It could be clothing, electronics, furniture, gym equipment, or even unused kitchen appliances. Every bit helps, and it’s a step towards financial breathing room while you’re between jobs.

8. Explore a low-cost side hustle

Do you have a business idea or skill you’ve been sitting on for a while? Maybe you bake well, tutor kids, fix electronics, do graphic design, or have a knack for admin. A small side hustle could help you generate income while you job hunt, and many of them don’t cost much to get started.

There’s no pressure to build a full-blown business right away. Start small, test your market, and see if it has the potential to grow into something sustainable in the long term.

Need help to cushion financial uncertainty?

If you’re employed, now’s the time to prepare. Even if your job feels safe, it’s worth being ready to deal with all the ‘what ifs?’ of working life.

Start by:

• Checking that your employer is contributing to UIF.
• Starting or topping up your emergency fund.
• Investigating income protection and credit insurance.
• Exploring additional income streams or short courses to upskill.

Retrenchment isn’t a reflection of your value or your potential. It's a tough life event, but it can also be a turning point – a chance to pivot, reset, or pursue something you never thought possible.

Whether you're going through retrenchment now or simply planning for worst-case scenarios, we’ll do our best to give you the support you need to stay afloat. Speak to one of our financial specialists to go through our savings solutions and insurance options to help you manage your finances through all life’s ups and downs.