Retrenchment can be devastating as it affects your financial security and your sense of worth. And it is not uncommon in times like these, when the economy is in recession and employers cut expenses such as salaries by letting people go or putting them on shorter hours.
Remember, the current trend is that people no longer remain in the same job for more than five years. Most people will have more than one career in their lifetime.
When it comes to the severance package your employer may pay you, it is important to understand the implications, especially regarding tax. Seek financial advice and plan the best use of your package.
You should never raid your retirement savings as this is a short-term strategy with long-term implications