Expert financial advice and guidance during this difficult period

Redundancy is a difficult period for employees due to the uncertainty

Redundancy can bring new opportunities as it often comes with a substantial cash sum. If you are near the end of your career, you could consider this a way to ease into retirement, but others may be looking to return to work. Whatever your situation is, it is important to consider your options carefully. At Four Wealth Management, we can help you feel more confident about the future with our expert financial advice and guidance during this difficult period.

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The importance of Financial Advice during redundancy

When your employment status is uncertain, financial advice can be invaluable when it comes to  making the most of redundancy pay and creating a financial plan to make sure that redundancy doesn’t leave you in a negative financial position.

A financial adviser at Four Wealth Management can help you to navigate what to do with your pay out as there are many options available to you which can be daunting.

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Make redundancy payouts tax-efficient

When receiving a redundancy package, it is important to understand the implications of receiving a lump sum and how to shelter it from tax.

For higher-rate tax payers only the first £30,000 is tax-free. Anything over this amount would be taxed at your higher-rate. However, if you were to receive the remaining amount after you have received your P45 then you would only be taxed at the basic rate instead.

Consider paying your redundancy pay directly into your pension pot 

You can ask your employer to make a lump-sum payment from part or all of your redundancy package into your pension fund rather than giving it to you directly. This could be a more tax-efficient way to receive the payment, especially if your amount exceeds the £30,000 tax-free sum. Any amount paid into a pension will also benefit from pension tax-relief.

If you are considering this, it is worth speaking to a financial adviser first to check you do not exceed your annual pension allowance.

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 Your company pension

An area that is often overlooked during the redundancy process is your company pension.

A financial adviser at Four Wealth Management can look at your existing workplace scheme and let you know if the underlying investments are in line with your goals.

It is up to you if you leave the pension where it is or move it to another provider. A financial adviser can explain the pros and cons of transferring to you.

It is also important to consider other benefits you will lose from your job such as private medical insurance and income protection. At Four Wealth Management we can help you to find alternative protection policies for your peace of mind.

Discuss your options with an adviser

To discuss your options for your redundancy package, you can book a no-obligation meeting with one of our financial advisers on a time/date that works for you.

The meeting can be by telephone, on zoom or face to face.

Book now or phone 0117 973 0500

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. 

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