Increase in Early Retirement Recruitment! What is Needed to Avoid Getting Lost at Life's Crossroads?
I saw news that the number of applicants for "early and voluntary retirement" exceeded 10,000 in 2024.
The article states that the number of recruits jumped to three times that of the previous year.
The background seems to be a review of human resource portfolios in corporate business structure reforms looking toward the future.
The article concludes that there is a high possibility of further acceleration in 2025.
It's not just about stock investment; modern salarymen are being treated as part of a portfolio.
If so, shouldn't individuals also treat companies dryly as just one of their options?
How can we perceive a pinch as an opportunity and make use of early retirement systems?
In this article, I want to consider this. (See the end of this article for related articles)
Is the Era of "Big Company = Stability" Over? About Restructuring Under the Name of Early Retirement
What is happening right before our eyes is restructuring under the name of early retirement.
In this news article, the following two points particularly caught my attention.
• A majority of approximately 60% are profitable companies
• Approximately 80% of the recruits are from listed companies
In other words, it's the fact that "employees of profitable large companies are highly likely to lose their jobs."
1.A majority of approximately 60% are profitable companies
Restructuring in the past used to be for companies in the red, I believe, but it is different now.
We are in an era where profitable companies restructure as part of business structure reform.
2.Approximately 80% of the recruits are from listed companies
The era of being stable as long as you joined a large company, as in the past, is over.
It is the white-collar layer of large companies that is actually in danger.
The reason why the white-collar layer of large companies is said to be in danger is the existence of AI, which is achieving dizzying growth.
The evolution of AI will bring significant changes to white-collar workplaces.
In data analysis and reporting tasks, AI can analyze vast amounts of data quickly and accurately and create reports. Also, for routine tasks like invoice processing, automation can save significant time and effort.
An increasing number of companies are also incorporating AI into some tasks in recruitment interviews, personnel evaluations, and new business planning.
This is not limited to some highly sensitive venture companies; AI utilization is becoming prominent in so-called large companies, such as well-known ICT companies and leading restaurant chains.
Times have changed.
Common sense is different from what it used to be.
Preparations to Turn Restructuring Called the Early Retirement System into an Opportunity
I personally have experience using an early retirement system as a game changer.
Preparation is necessary to turn restructuring named early retirement into an opportunity in life.
If I may, I will introduce my case as an example.
• Gain experience in asset management
• Make yourself marketable in the job change market
1.Gain experience in asset management
In the early retirement system, employees who retire before the mandatory age are paid an additional retirement allowance.
To use this retirement allowance effectively, asset management is useful.
For that purpose, it is better to get used to investing.
In my case, I was good at converting money into real estate, so I made full use of it.
I allocated all the extra retirement allowance I gained to real estate investment and converted it into unearned income (monthly rental income).
Having cash income (income gain) to replace a salary is very reassuring.
Without previous investment experience, I wouldn't have been able to make such a bold investment. It is better to have experience in investing.
The investment target doesn't necessarily have to be real estate, but it's better to get regular cash income (income gain) such as dividend stocks or bonds.
Because retiring means you will no longer receive the salary you used to get every month.
I have summarized income gains in the following article, so please refer to it.
What you need to know about income gains and capital gains to achieve FIRE – Julius Co., Ltd.
2.Make yourself marketable in the job change market
I recommend having experience and know-how that can be used outside the company you currently belong to.
In my case, I changed jobs by using my experience as an overseas expat as a "selling point."
Before an emergency like early retirement arrives, it's good to check your market value in the job change market.
In this day and age, recruitment agents are also becoming specialized, and there are agents suited to each generation.
Even if you don't change jobs immediately, there is no harm in just registering and confirming your market value.
What You Should Know Before Starting Preparations
When your company starts recruiting for early retirement, preparation is necessary to perceive it as an opportunity and take some action with risk, but there are points to keep in mind.
• Time is needed to get asset management on track
• Changing jobs is not a fundamental solution
1.Time is needed to get asset management on track
In particular, income gain investment, where regular cash income can be expected, often has a lower yield compared to investment aimed at capital gains. It will take time for unearned income to increase.
Prepared for the fact that it takes time, I want to get used to investing from as early a stage as possible.
2.Changing jobs is not a fundamental solution
Even if you change jobs, the fact that you are a salaryman remains the same.
I personally have experience where changing jobs didn't go well. The company I moved to was acquired, and I lost my place.
I don't think all job changes will result in failure, but why not keep a certain distance from the company and take time to calmly re-examine your life plan?
Let's recognize that working at a company is merely one option in life.
I have summarized ways of living that do not depend on a company in the following article, so please refer to it.
Summary
I perceive the current era as being similar to the Meiji Restoration.
The era of the samurai has ended. Let's switch our thinking.
The era has come where you cannot survive by wearing a topknot, carrying two swords, and serving at a castle.
The "Black Ships" called AI are also invading.
It is necessary to perceive pinches as opportunities and carve out your own life.
To that end, let's start preparing now!
Related article: 2024 "Early/Voluntary Retirement" exceeds 10,000 for the first time in 3 years; 57 companies recruiting, number of applicants jumps to 3 times the previous year (Tokyo Shoko Research) – Yahoo! News
■Author Profile
About the Author Kenji Kamioka
AFP (Certified by the Japan Association for Financial Planners), Licensed Real Estate Transaction Specialist
President and CEO of Julius Co., Ltd.An investor and strategic media owner with over 10 years of business management experience in three Asian countries: China, Thailand, and Vietnam. While actively managing real estate and financial assets through his own company, he promotes a lifestyle that leverages the structure of capitalism. He has authored numerous books.
▶ [Click here for author profile details.]
▶ [See the list of works here]
