You’re a high-flying executive at a Fortune 500 company, living the dream with a corner office and a paycheck that makes your accountant smile. Life is good. Then, suddenly, the rug gets yanked out from under you, and your boss informs you that your job is being eliminated. It happens more often than you might think.
I recently had a client get laid off from a high-earning executive position at Johnson & Johnson. Fortunately, she received a generous severance package, which gave her the luxury of figuring out her next steps. She decided to take a couple of months off, enjoy the upcoming months of fall, and indulge in golf while taking a well-deserved mental break.
I fully support this strategy. If you can afford to, why not use a layoff as an opportunity to pause and reflect before quickly jumping into the next chapter?
In the weeks or months following a layoff, there are a few key things to consider:
Midlife Career Change: Reevaluate What You Want
Losing a job in your 40s or 50s can be a turning point—a time to reflect on what you want from your career and life. It might be the perfect time to explore a midlife career change. High-powered executives often feel the pressure to immediately jump back into the workforce, but before doing so, it’s essential to ask yourself:
- Do you want to return to the same industry?
- Are you craving a new challenge or a shift in focus?
- Is now the time to explore passion projects or even early retirement?
Take this time to think about what you want from your career moving forward without the pressures of your previous job clouding your judgment. For some, it’s an opportunity to lean into a career they’ve always dreamed of but never pursued due to financial or familial responsibilities. For others, it might be about reclaiming a work-life balance that was lost during the grind of their executive role.
Being realistic is critical. If you plan to take a break, will you be able to relax fully, or will the uncertainty of unemployment keep you up at night? If you know that stress will creep in, plan how to manage it (it’s okay to admit that relaxation isn’t your strong suit!).
Coping With Job Loss: A Strategic Approach
While it’s natural to feel stress, remember that a layoff is often an opportunity. It’s a chance to step back, reassess, and reset. Here are some practical steps to cope with job loss:
Review Your Finances:
- Take a deep dive into your 401(k), savings, and severance package.
- Understand any company stock options or equity you may be entitled to and ensure you don’t miss any critical deadlines. This might be the perfect time to cash in those stock options or move around investments for more liquidity.
Create a Financial Plan:
- This is a great time to work with a financial planner to map out the next few months. Knowing where you stand financially is critical whether you’re considering a career shift or planning a sabbatical. You don’t want to make hasty financial decisions out of fear or uncertainty.
Brush Up on Skills and Networking:
- Even if you’re not quite ready to job hunt, keep your LinkedIn profile updated.
- To stay on the radar, consider connecting with recruiters and headhunters or posting about industry trends. It’s also a good time to reach out to former colleagues and industry contacts (a quick lunch catch-up could open some unexpected doors).
Build Emotional Resilience:
- The emotional toll of losing a job should not be underestimated, especially for executives who have poured years of effort into their careers. Take time for yourself. Consider engaging in mindfulness practices, talking to a career coach, or even journaling to process the change. It’s crucial to handle not just the practical aspects but also the emotional side of this next phase of your life.
Take Time for Personal Growth:
- This might be a rare moment in your career where you have the flexibility to focus on personal development. Sign up for a course, learn a new skill, or engage in hobbies that were on the back burner. Investing in yourself during this downtime can pay dividends when you’re ready to re-enter the workforce or make a career pivot.
Career Change in Your 40s or 50s: It’s More Common Than You Think
Career changes in your 40s or 50s are becoming more common, especially for high-net-worth individuals who may have the financial cushion to explore new ventures. Many people in your position choose to pivot to consulting, entrepreneurship, or roles that offer greater flexibility or personal fulfillment.
- Executive Consulting: If you’ve accumulated years of experience, why not share that wisdom through consulting? It’s a great way to stay active while retaining flexibility. Consulting roles allow you to continue contributing to your industry without the pressures of the day-to-day grind.
- New Industry: Some executives use this time to break into an entirely new industry such as nonprofit work, tech startups, or even academia. If you’ve always dreamed of working in a particular sector but never had the chance, now might be the right moment to make the leap.
- Entrepreneurship: Many executives use their expertise and network to start their own businesses, leveraging their unique insights from years in the industry. Whether opening a boutique firm or starting a completely new venture, entrepreneurship can be incredibly fulfilling and financially rewarding.
A career change in your 40s or 50s isn’t the end of the world. It might just be the beginning of something amazing! (Mid-life crisis? More like a midlife opportunity!) Think of it as an opportunity to pivot toward something you’ve always been passionate about, or at the very least, something that provides a better work-life balance.
Take Advantage of the Pause
While losing a job can feel destabilizing, it doesn’t have to be. High-level executives often have the means to take some time off and plan their next steps with care. Use this time to reconnect with yourself and make thoughtful, deliberate decisions about the future.
At Legacy Planning, we specialize in helping high-net-worth clients like you navigate life transitions, whether you’re considering a career change or preparing for the next phase of your professional life. Schedule a conversation today to see how we can help you plan for your future with confidence.
