If you or someone you know has been through a redundancy, you’ll know it’s hardly a walk in the park. Whether or not you’re aware your redundancy is imminent, when it hits home, you can feel quite disconnected and isolated.
Unfortunately, the time immediately following your redundancy being made official is crucial to both your employment and financial future. While it’s vital you allow yourself to emotionally adjust to the news, there are a few things you should definitely look into. Here’s a few post-redundancy items to add to your to-do list.
1. Your Centrelink Entitlements
Once you know how much you’ll be receiving for your redundancy, you should find out whether or not your Centrelink entitlements have changed. You may now qualify for Family Tax benefits, for example, so be sure to update your income estimate on the mygov.com.au website and contact Centrelink to discuss your situation. See how The Greater is able to help with Centrelink Entitlements here.
2. Your Lump-Sum Payment
Depending on the terms of your employment, you could now be sitting on quite a sizeable pay-out. You may be thinking about putting some of this towards your mortgage and other loans, you may be wondering how much of your payment you should commit to superannuation, or you may even be considering investing a portion of this money to sure up your financial future. Whatever your intentions, it’s never a bad idea to speak to an expert to discuss your full range of opportunities, before making any commitments to investing or paying out your loans. What you decide to do regarding applying for more work or retiring may affect other things like your Centrelink Entitlements. Meeting with an expert Financial Planner can help you make sense of your options.
3. Review Your Budget
If you haven’t had a household budget in place before, it’s time to make one. If you’ve been working from a pre-redundancy budget, now’s the time to change it. Living on an adjusted income can cause all sorts of pressures in your home, so doing a full review of all your income and expenses is a great way to prioritise and avoid financial tension. Take advantage of The Greater’s handy budgeting tool here, and check out our handy guide to setting up a budget here.
4. Think about up-skilling
If you’ve always thought of making a career change, a redundancy may be the perfect impetus for change. If redundancy has taken you more by surprise and you weren’t expecting to have to look for work, or if work in your field is scarce, it’s important to do a full review of your skills and abilities. Think about alternate uses for your credentials, and how you would go about selling yourself to potential new employers. And if you decide to re-train or go back to school, be sure to speak to Centrelink to see what you’re eligible for.
If you’ve been recently made redundant and would like to speak to an expert Financial Planner, you can make a complimentary, obligation free appointment online by clicking here.
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