Retrenchment: Financial Steps to Take Immediately

First week actions

Request a UI-19 and severance breakdown in writing. Register for UIF within prescribed timeframes. List essential expenses for three and six months — cut non-essentials the same day.

Notify creditors proactively if you anticipate difficulty — payment holidays preserve credit history better than silent defaults.

Severance and fund choices

Severance may be taxed as retirement lump sum or remuneration depending on structure — get a tax directive. Preserve retirement benefits; do not cash out to fund a short gap unless survival depends on it.

Check group cover termination date; arrange continuation or replacement cover before lapse.

Runway and next role

Divide net liquid resources by monthly essential spend for honest runway months. If under three, prioritise any income — contract, part-time — over perfect role fit.

Major Life Change in MyGenie models income interruption against fixed commitments and emergency fund.

This article is illustrative and educational. It is not financial, tax, or legal advice. Figures are examples only — model your own situation in MyGenie or speak to a licensed financial adviser.