'I was made redundant at 58. I have enough money to retire, but I don't want to'

Welcome to The Money Coach, a Times of Malta column where readers can ask questions about life's money issues. Send your questions about personal finances, inheritance, gifting or other personal finance topics to moneycoach@timesofmalta.com

Dear Luca,

The company that I've spent 22 years working for has just made me redundant.

I never expected it… just last year they told me that they'd welcome me working past retirement. Then just a year later, it all changed.

Given that all this happened a few days ago, my mind is still in a maze.

Financially speaking, I wouldn’t say I am in a difficult position. I saved and invested since the first day I started working, back when I was 18. Now I have a good sum to be comfortable.

But I still feel too young at 58 to retire completely. Working gave me a purpose. 

I didn't especially enjoy my job (accountant) but I liked the routine. 

So while I have enough money to retire, I don’t want to, and starting something new did cross my mind.

But at 58, is it not too late? Should I not take good care of the money I have accumulated, and maybe find the same work again?

I have this nagging feeling that though I worked long and hard all those years, I never actually worked in something I was passionate about. Not only that, but having worked all those years in accountancy, sometimes it is even difficult for me to understand where my strengths are (apart from accounting).

So my question to you is, should I, at my age, try something new? Or should I listen to what some close friends are telling me, to take time to relax, and enjoy early retirement, since I have the means to do it?

Undecided Early Retiree

Luca responds:

I am sorry to hear that you were made redundant after all those years. After 22 years in such a career, it is a significant part of your life. And the fact that your employer promised you something and then changed his mind abruptly makes it sting even more.

However, this could be a great opportunity for you.

You say that you're in a good financial position and that you never really enjoyed your years working in accountancy. 

I understand why you never changed job or career before. Being in your ‘comfort’ zone is after all the biggest obstacle for many people thinking of change.

In your case, you were ‘forced’ out of your comfort zone, and to your credit, you didn’t immediately think of going back to accountancy. You are considering your options, and that is already a big step in the right direction.

The question now lies: do you go back to your ‘comfort’ zone and find another job as an accountant (which won’t be that difficult, given the current demand in Malta), or take the leap and explore something else?

The second option is certainly not the easiest, but it is a chance to work in something you  actually enjoy doing.

Regret is a feeling that can haunt us throughout our lives, and you are at an inflection point where you can at least give something different a try.

You also said something very revealing: that it was the routine you enjoyed, not the accounting itself. That tells me the job was never the right fit; the structure around it was. You can build that structure around something you actually love.

The question that many people then ask is: ‘But Luca, I have too many passions, which one shall I choose?’

And it is here where I ask them to build a Life Inventory. This helps them to see what passions can be monetised faster. Because when doing something else, it is not just about choosing anything, but if you also want to make it financially feasible, then it has to take priority.

Let me use myself as an example.

Before I started money coaching, I had several other passions, including novel writing, for example. While both money coaching and novel writing are income-earning, money coaching seemed more feasible, especially since I wanted to earn money more quickly. 

And I discovered this by building my own Life Inventory. Let me show you what it looked like for me personally in 2022, so you can see how the gaps become visible once you write them down.

As you can see, the main difference is ‘How much you enjoy this?’ and ‘How much are you leveraging it?’.

I would then add ‘How can I make money out of it?’

In my own table from 2022, two things jumped out immediately. My stock market knowledge was sitting at a 6 for utilisation, but I was scoring it 9 for enjoyment. My Finance degree was at a 5 for utilisation, and 7 for enjoyment.

That gap between what I was doing and what I loved doing was impossible to unsee once I had written it down. Within months, I had launched Malta's first money coaching business. Not because I had a perfect plan; but because the table made the direction undeniable.

The money can come from several avenues. You can choose to seek a part-time/full-time job in your passion (the income might be lower than you’re accustomed as an accountant, but the fact that you’re financially comfortable will make this more bearable).

Then, of course, there is the option to turn this into a side-hustle at first, until it can become a full-time business endeavour in its own right.

You are not starting from zero. You are starting from experience, financial stability, and finally, the freedom to choose. What's needed is clarity and the confidence to step outside your comfort zone. Yes, the latter two might be big hurdles to overcome… but you have been presented with an opportunity through your redundancy.

What happened to you was painful and unexpected. But sometimes the path we would never have chosen ourselves turns out to be the one that leads us somewhere worth going. You have everything you need to find out

Luca is the founder of the Money Coaching Hub. Email him your financial questions or your response to today's question for a chance to be featured in a future column.

Disclaimer: This column is intended to provide general information on various topics related to personal finance. The information provided is for educational purposes only and should not be construed as personalised financial advice for your specific situation. Financial decisions are highly individual and can vary greatly based on your unique circumstances, goals, and risk tolerance. The author of this column is not authorised to provide financial advice. Before making any financial decisions, it is recommended to seek professional financial advice from an authorised financial advisor.