If you've recently been made redundant or face reduced working hours through no fault of your own, any feelings of uncertainty are perfectly normal. Whether this is a current concern or a future possibility, you should aim to be prepared for what comes next.
You've been made redundant. Now what?
To quote The Hitchhiker's Guide to the Galaxy: Don't Panic.
Concentrate on taking stock of your situation and putting yourself in the best position for the future rather than worrying about things you can’t change. Update your resume, take your actions in a positive direction and stay in touch with friends. Then you can think about your super:
1. Know your entitlements and review your payout
First, understand all the parts of your retrenchment package. If you’re unsure or need extra help Rest advisors can help lay out your options here.
Your total payout may contain the following:
- Annual leave you were eligible for
- Long service leave, if accrued
- A redundancy payout
||Tip: Termination payments like long service leave and redundancy payments do not include superannuation contributions.
2. Reorganise loans and debts
If you have loans or other financial obligations, talk to your lender as soon as possible. You may be able to restructure or temporarily lower your payment amounts.
3. Consider a financial plan
At a time when your circumstances are changing significantly, a professional financial plan could be reassuring.
If you're fortunate enough to find a new job quickly you could also invest some of your redundancy money in your super. You can use this to provide greater financial security in retirement or you may have pressing debts you need to pay.
4. Work out a budget
Compare your normal take-home pay and your redundancy package, then budget how much cash you’ll need over the next few months.
What happens to insurance?
You might be wondering what happens to the insurance cover provided by Rest in case you are made redundant.
As long as you have funds in your Rest account, insurance will continue to be provided to you. This will continue indefinitely until you either cancel it voluntarily, your fund balance reaches $0 or you roll out of Rest.
4. Stay positive
This might sound like a cliché, but redundancy could provide you with a window to change direction.
Change is stressful. But energy placed into finding a job you love might land you in a better place than before. It could also be the ideal job that helps you enjoy a more comfortable retirement further down the line.
||Tip: You may be entitled to some financial assistance. Contact Centrelink sooner rather than later as there may be a waiting period before you’re eligible for any income support payments.
No matter what scenario you face, Rest’s team of advisors can offer you a path to securing your best retirement. Get in touch to find out more.