Redundancy can affect anyone so it’s important to understand how you can manage a payout to make the most of it. It’s a good idea to seek professional financial advice to ensure your payout provides long term benefits.
Money to live on
You need to assess how much money you require to live on and how much you will be able to put aside.
Minimise tax
Part of your payout may be tax free. There are also ways to reduce the tax you pay on the taxable component. Some components of a redundancy must be taken as a cash payment while others may be transferred into super, which may be more tax effective.
Social Security
You may be eligible for Social Security support - the structure of your assets and income may increase your eligibility for Government assistance.
The right advice
A Bridges financial planner can help assess your needs, explain suitable investments and develop appropriate strategies.
1. This is general advice only and does not take into account your objectives, financial situation and needs. Before acting on this advice, you should consult a financial planner.
2. Bridges Financial Services Pty Limited trading as Bridges Personal Investment Services (Bridges). Bridges holds an Australian Financial Services Licence No.240837 issued by the Australian Securities and Investments Commission (ASIC), is an ASX Participant and a Principal Member of the Financial Planning Association of Australia.
3. In referring Members to Bridges, Gateway Credit Union does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.
4. Gateway Credit Union may receive commissions from Bridges, for referring Members who invest through Bridges. See Gateway’s Financial Services Guide.