I have received a slew of emails from government employees who are still employed but are worried that the axe could fall at any moment. (This goes for my colleagues in the media, who are facing similar pressures amid a shrinking industry.)
For the long-tenured folks, these are usually framed as one podcast listener queried: “Should we stay, or can we go now?” This boils down to whether or not a worker can afford to retire early, or earlier than previously planned.
To answer that question, you’ll need to do some work. Start by calculating how much you spend today. I hear you groaning, but this is the cornerstone of every financial goal, including early retirement. You may need to factor in more money going out for health care, depending on your benefits or whether you can switch to a spouse’s plan.
Next, determine what you own (your assets, like retirement, investments, and savings accounts) and what you owe (liabilities).
You will then need to see if you will have enough income (pension, future Social Security and money that your retirement and investment accounts generate) to meet your needs. Maybe the numbers line up, but if they don’t maybe you can bridge the gap with part time work; otherwise, it’s back in the labor pool for you.
To start your job/career search, you will need to conduct research on the opportunities within your desired or current field. While we are no longer in the frenzied post-pandemic labor shortage period, the economy continues to add jobs in various sectors.
Head to sites like Glassdoor, LinkedIn, and reddit message boards to arm yourself with information about what jobs are available and their salary levels.
Then dust off the resume and cover letter and be sure that it reflects who you are today. If you haven’t done so in a while, update your online presence, and clean up your social profiles, which may include changing settings, so they are private.
Then fire up the network and talk to people whom you know and also with those with whom you share a connection.
The labor market may have changed since the last time you were looking – the most important development is that several states and jurisdictions have enacted pay transparency laws, which require job listings to include the salary range for the position advertised.
Additionally, in many states and municipalities, it is illegal for companies to ask what your previous or current salary is, and many large firms have stopped the practice. If asked about your salary range for the position, say something like, “from my research, it seems that people like me typically earn $65,000 to $75,000.”
As you enter the negotiation process, consider valuable benefits like retirement plan matches, life and disability insurance, and health care contributions. And while there have been many companies that require workers to be back in the office five days a week, others are using flexibility as a way to attract talent.
According to the National Bureau of Economic Research (NBER), “on average, employees are willing to accept a 25 percent pay cut for partly or fully remote roles.” If working from home is a priority, it may be well-worth the reduction in pay for your sanity – or maybe to save on daycare costs and commuting time.
One final planning note: If you are concerned about your job, make sure that you have 6-12 months of living expenses in an easily accessible savings, checking, money market account or certificate of deposit.
As I have noted, an adequate emergency fund is the salve to life’s dreaded “what ifs.”
Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com.