Redundancy
These days, it’s uncommon to stay in the same job for life, and most Cbus members will experience a number of job changes. Usually this is the result of their own choice, but some members can also experience job redundancy.
If you’ve been made redundant, some of the issues that may need to be dealt with include:
Termination payments
Termination payments received as a result of redundancy receive special tax treatment. The best use for a redundancy payment will depend on your circumstances. For many people, a termination payment may be the main means of meeting living expenses for a period of time. For others, it may be an unexpected bonus.
A new job
Looking for work will be a priority for many people. Others will consider early retirement, or becoming self-employed. Many employers or industrial agreements provide outplacement or job transition support as part of the termination package. If this is available, make full use of the assistance provided.
Centrelink benefits
You may be eligible for Centrelink benefits whilst looking for work or undergoing re-training. Eligibility for government payments is affected by a number of things, including termination payments, spouse or partner income and your level of financial assets.
Superannuation - Do I need to do anything?
Now is the ideal time to review your superannuation arrangements, to ensure they are the best for you. If you’ve been made redundant – you can leave your super with Cbus for as long as you want.
Can I access my super?
Super is designed to keep you going in retirement and ideally should be kept until then. However, life changes, and you may need to access part of your super before retirement. Depending on your age and the components of your super account, it may be possible to access some of your benefit before retirement. In addition, you might be able to access ‘limited’ amounts in cases of severe financial hardship. For more information, call us on 1300 361 784.
Need advice?
The financial issues associated with redundancy can be complex. Fortunately, a Cbus financial planner can help you through this difficult time. Call us on 1300 361 784 for a free initial appointment.