Redundancy help.
If you are leaving your employer due to redundancy, you have a great opportunity to make a fresh start.
Now could be the best time to think of a career change, become self-employed or consider retirement. But regardless of what your next steps might be, it's important that you now:
Understand the payments you may receive from your employer and what tax treatments apply
Consider the financial issues likely to be relevant to your age and career goals, and
Speak to a trusted Financial Planner / Advisor to find out how you could manage your redundancy payments effectively.
The types of payments you may receive in the event of a genuine redundancy include...
A Genuine Redundancy Payment, which is tax-free up to a limit based on your full years of service.
An Employment Termination Payment, which is a lump sum payment you may receive that can include the genuine redundancy payments exceeding the tax-free limit, unused sick leave, unused rostered days off, payments in lieu of notice and 'golden handshakes' (also know as ex-gratia payments).
Other payments you may receive from your employer including accrued annual leave, accrued long service leave and, of course, your final pay.
Redundancy issues to consider...
When you take a redundancy, you need to decide what you're going to do with the payments you're eligible to receive. But, there are other financial issues you may need to consider...
If you plan on finding a new job:
How will you meet your living expenses until you find another job?
Will you be eligible for Newstart Allowance?
Will you need to move your superannuation to another fund?
Should you merge your superannuation into one account?
Should/Can you use some of your superannuation to pay yourself a pension?
Will any insurance policies taken out on your life cease when you leave your employer?
What would you do with any left over redundancy pay when you find another job?
Should you seek the services of a human resources specialist to help find you work?
If you plan on retiring after you leave:
Have you accumulated enough wealth within and outside superannuation to provide an income to meet your ongoing lifestyle needs?
Should/Can you use some of your superannuation to pay yourself a pension?
Will you be eligible for the Age Pension or other benefits?
Do you need to review your estate plans?
Do you need to review your insurances?
The value of good advice.
As your Financial Advisor, we can pull together all of these considerations, so you make the most of your redundancy. So if you've been made redundant, please don't go it alone. Call us today.