What You Should Do If You Lose Your Job: 3 Helpful Tips
Time to Read: 2 minute
If you are unemployed and do not know where to start organizing your retirement from the company, it is important that you take these tips into consideration
Currently, the labor market in the United States is unstable, with constant increases in interest rates to control inflation, some companies have seen the need to cut their expenses, which has generated a wave of layoffs.
Most of the labor sectors in the United States have cut their payrolls, generating a high unemployment rate and strong uncertainty on the part of employees. Being laid off at a time of great economic turmoil can be scary.
If this is your case, here are 3 useful tips on what you should do if you lose your job:
Protect retirement savings
If you had access to a 401(k) plan with your former employer, it is important that you know that this money can be transferred to another account, although there are many companies that allow their former employees to keep their plan, many times that is not the best option. In this case, it can be deposited into a plan with your current employer or into an individual retirement account.
In this sense, Rita Assaf, vice president of retirement leadership at Fidelity, points out that “it is essential to keep in mind that not all companies accept a transfer from the plan of a previous company, so you should consult your new company before taking any decision,” he explains.
Apply for unemployment benefits
If you were fired and still can't get another job, you can choose to apply for unemployment benefits, it is relevant that you know that this is only provided to people who have been fired and not to those who resign by choice.
Michele Evermore, a senior fellow at The Century Foundation advises that “as soon as you leave work, you should go to the unemployment insurance office,” she said. These requests can take a few weeks, so the sooner you file the request, the better.
Research your health insurance
Many employers cover their workers with health insurance, so when laid off they often lose their coverage as well. According to Caitlin Donovan, a spokeswoman for the National Patient Advocate Foundation, she stresses that “as overwhelming as it can be, it's important to seek coverage quickly after you're laid off .” In this case, it is necessary to know until what date the company you worked for will provide you with the insurance.