Redundancy can affect anyone and can be a major turning point in life, whether this means starting retirement early, planning a new career, or embarking on a new business opportunity. Taking voluntary or non- voluntary redundancy has many emotional and financial implications and it is important to understand how you can manage a redundancy payment to ensure you make the most of it.
The Path to Retirement
Many people who are made redundant later in their working life find that it becomes a catalyst for their retirement. This can either be by choice or due to difficulties in finding new employment. Some people welcome this push into retirement, whilst many others feel a sense of loss and confusion when retirement is suddenly thrust upon them.
However you are feeling about your retirement, you will need to carefully consider and plan your step into retirement. With the average life expectancy in Australia at around 80 years of age, it’s likely that you’ve got many years ahead of you that you will need to support yourself financially. You might like to consider the following questions:
- What sort of lifestyle do I want to have?
- How much money will I need on a regular monthly basis?
- Do I want to leave a legacy to my loved ones in the future?
Retrenchment as a Windfall
If you know that your retrenchment is just a temporary pause in your career, your planning is going to be very different. Remember that there is the possibility that you may not find a suitable new position for some time so resist the urge to spend your lump sum payout – you may need it to support yourself over the coming months. In addition, with appropriate planning and guidance, you could use your redundancy payout to help you secure your financial position for the future by appropriate investing and debt management.
How Select Advice Financial Planning can help you with your redundancy decisions
Regardless of whether your redundancy or retrenchment is a permanent step towards retirement, or a career gap, we recommend that you speak to our Senior Financial Planner to seek tailored financial advice. If you are retiring, we can help plan your finances so that you can use your redundancy payout appropriately to fund your lifestyle for the rest of your life. If you’re on the hunt for a new job, we can help you get the most out of your redundancy payout by showing you ways to invest it appropriately for your situation.
Redundancy Advice & Appointment
To make an appointment for a confidential discussion on your redundancy options, please complete and submit the section below and we will in contact with you shortly.