Written and reviewed by Brandon VanLandingham, CFA, CMT, CFP® · Last updated August 11, 2022
People sometimes find themselves in the position of losing their job. In today’s economic uncertainty, business closures and layoffs are increasingly common. The loss of a job can cause serious stress for these individuals, personally and financially. To help you through a disruption in employment, we’ve created the checklist “What Issues Should I Consider If I Lose my Job?”
In this checklist, we cover a number of issues to consider, including:
Severance options, if any are offered
Employer benefits, including continuation of health insurance, sick pay, etc.
Eligibility for unemployment benefits
Budget adjustments
Health insurance options
Employer-sponsored retirement accounts, stock plans, and other benefits
Income tax considerations
Retirement or future employment options
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Frequently Asked Questions
- What are the first financial steps to take after losing a job?
- After a job loss, immediate financial priorities include reviewing severance agreements, applying for unemployment benefits, and evaluating health insurance options like COBRA or the Marketplace.
- How can I maintain health insurance after being laid off?
- Individuals can typically maintain health coverage through COBRA, join a spouse’s plan via a special enrollment period, or purchase a plan through the Health Insurance Marketplace.
- What happens to my 401(k) when I leave a job?
- Options for a former employer's retirement account include leaving the funds in the current plan, rolling them into an IRA, or transferring the balance to a new employer's plan.
