Redundancy or Retrenchment Planning

Retrenchment or career change can be a worrying time. Getting your finances under control helps reduce the stress on you and your family, and helps you avoid costly mistakes.

Research suggests one-in-three executives face retrenchment at least once in their career. Others opt for significant career changes, which often take time to pay off financially. But while these transitions are common, it doesn’t make the financial impacts easier to manage. And there are important choices to make.

First you’ll need money until you find another job. Should you cash in your payment or sell some other assets? If so, which ones? Many people find it useful to set up a regular income from a cash trust to pay the bills while they get re-organised. Is this right for you?

Then there are Centrelink payments, with income and assets tests and thresholds. You’ll need to understand exactly what you can claim, and when.

If you’ve enjoyed benefits like life insurance, super contributions and employee share schemes, you’ll have decisions to make with these too.

The good news is that most people can come out the other side of retrenchment or a career change better prepared to get ahead financially.

Quality financial advice can help you make the right decisions, and reduce one of the key causes of stress during an unsettled period.

To find out more on Redundancy Planning, contact us at: wealthcreations@blackmoreinvestments.com.au