25 Mar 2022
SOURCE: CPF Board
It’s been called "The Great Resignation" and "The Big Quit". If you’re tempted to join the manpower exodus in search of a different purpose, hold that thought.
Here are two things we recommend before you make this big move.
1. Work out an action plan
Whether you’re jumping straight to a new job or are in need of a break before embarking on a fresh start, you need to have an action plan.
If your plan is to move on to another job, hold out until you’ve signed an official letter of offer before handing in your resignation at your current one, just to ensure you don’t get caught off-guard.
If you dream of starting something you can call your own, have a game plan for how you'll get your clients. For example, work on your personal branding, set up your online portfolio or create an account on a freelance website and start off by taking on some gig work.
And if you want to take a break before starting your next job hunt, make sure that you’ve sorted out your finances — which leads us to point 2.
2. Assess your financial situation and rejig it where necessary
This is especially important if you don't already have another job lined up!
As a start, make sure you’ve set aside at least six months' worth of expenses to cover you comfortably for this period. This should be on top of your emergency funds for unexpected setbacks. One way to save is to identify where you can trim your expenses (e.g. underused subscription services that you can live without).
Taking time away from work also means you'll stop receiving CPF contributions. If you're paying your monthly housing loan instalment with your Ordinary Account savings, log into the CPF mobile app to check if you have enough set aside. Otherwise, you’ll have to pay off your monthly mortgage with cash.
If you're making the switch to be self-employed or are doing freelance work, remember to keep your health and future in mind. Find out what are the mandatory MediSave contributions you’ll have to make, and since you won’t have monthly CPF contributions to your Ordinary and Special Accounts, consider making regular top-ups to all three CPF accounts so that your retirement goals won’t be compromised. Here’s a guide to help you plan better as a self-employed.
It’s no small decision to leave your job, especially if you’ve been there for a few years. But checking off this job-quitting bucket list can ensure you’re ready to take your next step in finding greener pastures.
Information in this article is accurate as at the date of publication.
