Don’t Resign. Get Fired instead!

Don’t Resign – Get Fired Instead! Here’s Why It Might Be the Smarter Move

For those who have achieved financial independence and are contemplating quitting their job, here’s an unconventional but strategic alternative—don’t resign. Instead, consider letting your employer lay you off. It might sound counterintuitive, but in many cases, this approach can work in your favor.

Why Getting Laid Off Is Better Than Resigning

The current economic climate has pushed many organizations to focus on cost-cutting and downsizing. Often, employees in their late 40s or 50s—who draw higher salaries compared to younger hires—are the first in line when companies make layoffs. While this might sound unsettling, it can actually be a golden opportunity for those looking to retire early.

Unlike voluntary resignation, layoffs often come with a severance package. Depending on your organization’s policies and tenure, this severance can be substantial. In many cases, employees receive compensation equivalent to one month’s salary for every year of service. This means that someone who has been with a company for 20 years could walk away with 1–3 years’ worth of salary in a lump sum payment. That’s a major boost to your retirement corpus with zero extra effort!

Timing It Right to Reduce Tax Impact

There’s a catch, though—severance pay is taxable. To minimize tax liability, the best approach is to plan your exit at the start of the financial year. This way, your overall taxable income for the year remains lower, preventing the severance from pushing you into a higher tax bracket. Thoughtful planning can help you retain a significant portion of the payout instead of losing a large chunk to taxes.

Making It Happen – The Right Approach

Now, this isn’t an option that works for everyone. If you have been a long-time employee, have built goodwill within your company, and have an understanding boss, you might be able to discuss this arrangement with them. In some cases, managers are open to structuring layoffs in a way that benefits both the company and the employee.

Of course, this approach can seem questionable to some—it’s a fine line between strategy and ethics. It’s not illegal, but it does require the right circumstances and a supportive work environment to execute smoothly. If done correctly, it can shave 1–3 years off your working life and bring early retirement within reach much sooner than you expected.

The Bottom Line

If you’re financially independent and looking to retire soon, resigning outright might not be the best move. Instead, consider the possibility of getting laid off—if your situation allows it. A well-planned exit can mean a generous severance package, reduced tax burden, and an earlier start to your post-work life. Play your cards right, and you could be enjoying financial freedom sooner than you thought!

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as financial, investment, or legal advice. The content is based on publicly available information and personal opinions and may not be suitable for all investors. Investing involves risks, including the loss of principal. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. The author and website assume no liability for any financial losses or decisions made based on the information presented.