The prospect of redundancy is usually unsettling and worrying for most people. We generally have a lifestyle to maintain, some have children to support and many of us have financial commitments such as, mortgages, a car and personal loans.
However, redundancy doesn't always have to be an unpleasant event. Redundancy can sometimes be an opportunity to reflect upon past achievements, re-evaluate your goals and career aspirations and plan a new path for the future.
Redundancy can affect anyone. If faced with this situation, understanding how to manage your redundancy payment to make the most of it is important. First, assess how much money you need to live on and how much you'll be able to put aside from your payout.
You may be eligible for some Centrelink support following a redundancy. The structure of your assets and income may increase your eligibility for government support.
Reducing the tax on your payout
Part of your payout may be tax-free. There are also potential ways to reduce the tax you pay on the taxable component.
Make sure you get the right advice so your redundancy payout provides long-term benefits. For example, you may choose to reduce your mortgage, invest your payout for the long term in growth assets like shares, or contribute it to your super.
A financial planner can help you plan to make sure your payout is used wisely.
Your first consultation with a Bridges financial planner* is complimentary and obligation free.
It’s an opportunity to discuss your expectations and aspirations, as well as your financial circumstances, needs and goals.
Connect with a Financial Planner
Call 133 282 or find your nearest branch.