Coronavirus causing job loss later in life
2 June 2021
Unemployment during the pandemic
One of the recurring debates currently dominating the news surrounds the number of younger people struggling to find work during the pandemic. Unfortunately, another regrettable (and yet, less talked about) consequence of COVID-19 is that older workers are also losing their jobs. Being unemployed later in life can have a devastating impact on your financial security as, unlike if you’re struggling to find a job fresh out of university, you’re likely to have monthly financial obligations, such as your mortgage, or your children’s university accommodation fees and bills — all of which rely on your income to meet.
Worryingly, a study by Resolution foundation, found that redundancy amongst over 50’s is of particular concern, because people in this age category take longer to find a different job and, when they do find new employment, are more likely to take a pay cut. The study also commented on how losing a job later in life can have a significant effect on your retirement plans, either pushing people towards an early retirement, which they may not necessarily be able to afford or, conversely, having to retire later to compensate for lost time.
Using equity release to see you through unemployment
If you’ve unfortunately lost your job as a direct consequence of the pandemic, you might be finding your finances somewhat overwhelming while you search for a new opportunity. The good news is that the government’s roadmap to ease us out of the pandemic is going to plan, which means that the UK’s economy should start recovering as well, providing new work opportunities.
With this said, trying to make your money last whilst searching for a new job can be an overwhelming process, particularly if other aspects of your finances have been impacted by the pandemic, such as your partner being furloughed. If you’re in this position, one option could be for you to release some of the equity in your property to see you through this difficult time.
Equity release is a secured lending for homeowners over 55, freeing up some of the wealth in your property, while you continue to live there. Crucially, your home won’t be sold unless you move into full-time residential care or pass away and you can choose whether you want to receive your money in instalments, or as one lump sum.
How to land a job in later life
Whilst equity release can be a great option for seeing you through these difficult times, for most people made redundant during the pandemic, the ultimate aim is to land a new job. Here are a few tips to help secure employment:
- Work with a recruiter: Working with a recruiter can be a great way to find out about new opportunities and you can usually work with one who specialises in your field. Additionally, they’re financially motivated to land you a job, meaning you’ve got another voice fighting your corner
- The National Careers Service: The National Careers Service has lots of great advice for re-training and interview technique if you feel a bit out of practice
- Keep training: Increasingly, employers are looking to see that you’ve been investing your time in training whilst job hunting. There are some excellent free certifications available online, so why not try and find one that’ll help you in your career?
- Consider how you want to work: It might be that the pandemic has caused you to rethink how you want to work. You might choose to take your redundancy as a stimulus to decrease the number of days you work each week or want to work remotely. Being sure of how you want to work will bring new opportunities as well as preventing you from wasting your time on jobs that aren’t right for you.
If you’ve lost your job during the pandemic and you’d like to see whether releasing equity could help support you during your search, then please get in touch.