The Coronavirus pandemic has led to many redundancies. If you are one of the people being made redundant you first need to understand what is being offered to you. You should also consider if you are in a position to negotiate a better redundancy package.
You should receive payment in lieu of handing in your notice, it is important to look over your original contract so you know what your notice period is.
You need to understand what your redundancy pay entitlement is. You will be entitled to statutory redundancy pay if you have been working with your current employer for over 2 years. Many employers offer packages higher than the statutory pay.
What is your position after being made redundant?
You need to consider your current financial position and if you need to keep working. If you were planning on retiring in the next few years, being made redundant may make you consider retiring early. At Four Wealth Management, a Financial Adviser can help you to calculate if your pension pot is big enough for you to retire earlier than planned.
However, if you are still a long way from retirement, you could consider taking a small career break before looking to find a new job.
The value of financial advice
Once you have considered your options, financial advice can be invaluable to you. A Financial Adviser from Four Wealth Management will create a bespoke financial plan tailored to your new goals and advise you on what to do with your redundancy package.
Your adviser will take all your assets into consideration, including your pensions, investments and redundancy package. They will then look at your outgoings.
You may find that the income from your existing investments and your redundancy package is enough to allow you to retire earlier than you planned.
Alternatively, you may choose to use your redundancy package to pay off your mortgage or fund your children’s education.
Many people forget about their company pension when being made redundant. Your Financial Adviser can give you advice on pension changes you should consider such as establishing if your pension is invested in funds that are suitable for your circumstances. If you are over the age of 55, you could consider drawing income from your pension to supplement your loss of earnings.
Have you lost valuable benefits?
As well as losing your income, there are other benefits linked to your employment that you will lose such as private medical insurance or life insurance. Your Financial Adviser can advise you on what levels of cover are appropriate for your circumstances.
Create a financial plan following your redundancy
If you would like to speak to a financial adviser for some guidance on your redundancy package, all meetings at Four Wealth Management are no-obligation and can be on a time/date that suits you.
Contact us on 0117 973 0500 to book.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.