Why redundancy doesn’t have to be a dirty word

Why redundancy doesn’t have to be a dirty word

By Emma Brooke, Financial Advisor

They say everyone gets made redundant at least once in their lifetime. But no matter how many times you hear people’s reassurances, it can be a scary time especially if you have a family and a mortgage and other ongoing financial commitments.

Local financial planning firm, GTC Financial services, is no stranger to helping people through the redundancy maze. Emma Brooke, Financial Advisor said that people leaving their employers due to redundancy should try to see it as great opportunity to make a fresh start.

Here’s some information from Emma on being made redundant.

Now could be the best time for you to think about a career change, become self-employed or consider retiring if you are close to retirement. Firstly, you need to understand the payments you may receive from your employer and what tax treatments apply. You will also need to decide what you are going to do with the payments you are eligible to receive and the approach varies depending on what the person needs and wants.

Things to consider if you plan on finding a new job:

How will it meet my living expenses until I find another job?

Will I be eligible for the Newstart Allowance or other relevant social security benefit?

Will I need to move my superannuation to another fund?

Should I merge my superannuation into one account?

Should I use some of my superannuation to pay myself a pension?

Will any insurance policies taken out on my life cease when I leave my employer?

What should I do with any leftover redundancy pay when I find another job?

 

Things to consider if you’re planning on retirement following a redundancy:

Have I accumulated enough wealth within and outside superannuation to provide an income to meet my ongoing lifestyle needs?

Should I use some of my superannuation to pay myself a pension?

Will I be eligible for the Age Pension or other relevant social security benefit?

Do I need to review my estate plans and insurances?

It does help to speak to an accredited and experienced financial advisor who will help you manage your redundancy. Also to decide what to do with the payments you are eligible to receive from your employer, make the most of your super to help you become financially secure in retirement and determine whether you are eligible for any Government income support payments.

To find out how the choices you make could impact you, and discuss strategies that may assist you to make the most of your redundancy, contact your Emma at GTC Financial today.