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Job insecurity is a reality many of us face at some point in our working lives. Whether it’s rumours of restructuring or signs of economic slowdown, the thought of being laid off can cause real financial anxiety.
If your company has already started cutting roles and you’re worried you could be next, it’s natural to start asking, “What should I do with my finances?” Taking a few proactive steps now can go a long way in protecting your financial well-being and giving you more control during uncertain times.
Your First Steps After a Layoff
Losing your job can feel overwhelming, but taking the proper first steps can protect your rights, clarify your next move, and give you a sense of control.
Here’s what to do immediately after being laid off:
Get It in Writing
Ask HR for a formal letter stating that you were laid off. This document is essential for:
- Applying for Jobseeker’s Benefit
- Proving you didn’t leave voluntarily (which can impact benefits)
- Future job applications
Clarify Your Entitlements
Here are key questions to ask your employer:
- When is my last working day?
- Will I receive pay for unused annual leave?
- What happens to any bonuses or commissions I’m owed?
- Am I entitled to a severance package?
If they offer severance, don’t be afraid to negotiate — especially if you’ve been with the company a long time or if redundancies are being handled inconsistently. - What about my health insurance or employee benefits?
If you have private health insurance through your work, ask how long it will remain active and whether you can continue it on your own.
Financial Planning is Key
When you suspect a layoff might be coming, it’s vital to get ahead by organising your finances. This means knowing exactly how much money you have, what your regular expenses are, and how long your savings could support you.
Start by reviewing your budget, cutting unnecessary spending, and making a plan to stretch your income as far as possible. It’s also a good time to check if you’re eligible for any government support. Taking these simple steps now can help reduce stress and give you more control during challenging times.
Here’s a step-by-step guide to help you prepare financially if you think a layoff might be on the horizon.
Review Your Finances – Know Your Numbers
Before anything else, take the time to review your financial situation. Start by listing your essential monthly expenses, such as rent or mortgage payments, groceries, utilities, and transport.
Then, look at any debts you’re repaying and how much you owe each month. Check your savings too — ask yourself how many months you could manage without a regular income.
If you don’t already have a budget, now is the time to create one. It doesn’t have to be complicated — a simple spreadsheet or a free budgeting app can help you track your income, spending, and savings. Having a clear budget gives you better control over your money and enables you to make more confident decisions.
To make it easier, we offer a free personal budget planner you can use to get started — simple, practical, and designed to help you stay on top of your finances.
Boost Your Emergency Fund
An emergency fund is your financial safety net — ideally, it should cover 3 to 6 months of essential living expenses. If your savings are a bit low, now’s a good time to focus on building them up.
Start by cutting back on non-essential spending where you can. Any extra income — like bonuses, tax refunds, or side earnings — can be redirected straight into your savings. It also helps to keep this money in a separate account so you’re not tempted to dip into it for everyday costs. Even small, consistent contributions can make a big difference over time.
Understand Your Redundancy Rights in Ireland
If you’re made redundant in Ireland, it’s important to know your rights and entitlements. You may qualify for a Statutory Redundancy Payment, provided you meet specific criteria, such as having been with your employer for at least two years. In some cases, employers also offer Ex Gratia payments — these are voluntary top-ups in addition to the statutory amount.
You could also be eligible for unemployment benefits, such as Jobseeker’s Benefit or Jobseeker’s Allowance.
If you’ve recently faced redundancy, or you’re expecting it, make sure you understand how any lump sum payments will be taxed and what reliefs may apply. In many cases, part of your redundancy payment can be tax-free, mainly if it includes a basic exemption or an increased exemption for long service.
Whether you’ve already received an offer or are just preparing for the possibility, educating yourself on your options will help you make informed decisions and protect your financial future. Learn more about redundancy and taxes in Ireland here.
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Avoid Taking on New Debt
When facing the possibility of a layoff, it’s wise to hold off on significant financial commitments. Now may not be the best time to buy a new car, upgrade your home, or take out any significant loans. Increasing your financial obligations while your income is at risk can add unnecessary pressure.
If you’re already managing debt, take a proactive approach — review your repayment schedule, prioritise high-interest debts, and speak to your lender if you think you’ll struggle to keep up with payments. Some lenders may offer flexible options or assistance if you’re experiencing financial pressure.
Review Your Insurance Benefits
One of the biggest concerns after a layoff is what happens to your company-sponsored benefits, like private health insurance or life insurance. These benefits often end when your employment does, so it’s crucial to understand what you’re entitled to and explore your options for continuing or replacing them. In some cases, you may be able to extend your health insurance temporarily or convert group policies to individual ones.
When it comes to life insurance, income protection, and serious illness cover, it’s crucial to have your own individual policies in place. Relying solely on workplace benefits can leave you and your family vulnerable if something unexpected happens. Taking out personal cover ensures that your financial safety net stays in place, no matter where you work.
Don’t Forget About Your Pension
If you’ve been laid off and moved on to a new job, you might be wondering what happens to the pension you built up with your previous employer. In the case of redundancy, depending on your age and the type of pension plan you were in, you may even have the option to access your pension early.
If you had more than two years of pensionable service, you generally won’t be eligible for a refund of your personal contributions. However, you do have a few options:
- Leave your pension in your former employer’s scheme
- Transfer your pension to a Personal Retirement Bond (PRB)
- Move it into your new employer’s Occupational Pension Scheme
If you had less than two years of qualifying service, your options change slightly. You could:
- Stay in the scheme as a Deferred Member, if the scheme rules allow it, and retain benefits from both your and your employer’s contributions
- Request a refund of your personal contributions (subject to tax), provided the scheme permits it
- Transfer your contributions to your new employer’s pension scheme
- Or transfer to a Personal Retirement Bond (PRB)
Each option has its pros and cons, and the best choice depends on your age, service, and career plans. To better understand your entitlements, check out our full article on what happens to your pension when you change jobs. Alternatively, you can speak with one of our financial advisors to find the retirement strategy that best suits your goals and situation.
It’s Not All Negative – Look at the Positives
As hard as it is in the moment, remember: a layoff isn’t the end — it’s a new beginning.
Being laid off gives you space to:
Reassess Your Career
This is the perfect time to reflect. Did you enjoy what you were doing? Were you just going through the motions? A layoff gives you permission to rethink your goals and realign with what truly matters to you.
Learn and Upskill
Use your downtime to invest in yourself:
- Take an online course in an area that interests you
- Attend workshops, industry events, or webinars
- Volunteer or freelance in areas where you want to build experience
Many online learning platforms — like, such as Coursera, Udemy and LinkedIn Learning — offer low-cost or free courses.
Explore Entrepreneurship
For some, a layoff is the push they needed to finally pursue their own business idea. If you’ve ever dreamed of being your own boss, now might be the perfect time to explore the path of entrepreneurship. While starting a business comes with its risks and responsibilities, it can also offer freedom, purpose, and long-term potential.
If you’re considering this route, we have a range of helpful articles to guide you — from tax reliefs and grants for starting a business in Ireland, to setting and improving business goals, identifying habits that hurt financial growth, and learning how to balance personal and business finances. You’ll also find tips on tax planning for self-employed individuals and business owners. Explore more resources here.
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Get Your Financial Planning Quote with True Wealth
While it’s never easy to think about the possibility of a layoff, being financially prepared can make all the difference. It’s like having insurance — you hope you won’t need it, but you’ll be relieved to have it if the time comes.
At True Wealth, we provide personalised financial guidance to help you build a strong and reliable financial foundation. Whether you’re interested in income protection, retirement and pension planning, or creating a tailored financial plan, our expert advisors are here to support you at every stage. Reach out to us today and take the first step towards greater financial confidence and peace of mind.
We are experts in personal and business protection, savings and investments, pension tracing, personal financial planning, mortgages, and wealth management and extraction.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
