On first learning of your retrenchment you may be overwhelmed by the number of financial decisions you need to make. 

When you are considering your retrenchment options, prioritising your tasks is essential. Knowing what you should do now and what can wait a while, can help take some of the pressure off.

Things that we can help you take into consideration.

Cash flow management

Your retrenchment payment is a limited amount, so making the most of this payment is important.

Park your funds

While it may be tempting to spend some of your retrenchment payment on paying off debts or purchasing new items, you should remain as financially flexible as possible during this period of transition, while you consider the next steps in your life. Consider placing unused leave, long service leave and tax-free retrenchment payments into a cash management account that offers a regular payment facility (this acts like income).

Do a budget

Preparing a budget will give you an idea of the cash reserves you are likely to need in the coming months. And it’s important to factor in the length of time it may take you to find new employment, including any Centrelink payments you may be entitled to.

Centrelink payments

You may be eligible to receive Centrelink income assistance under one of the following programs:

Waiting periods may apply to these programs, so we assist in liaising with Centrelink on your behalf.

Other considerations that we will factor in when advising our clients include:-

  1. tax effective
  2. favourable regarding Centrelink eligibility
  3. effective at boosting your retirement savings.

Get the right advice

Turner Financial Solutions offers expert financial planning advice with the aim of developing a financial strategy suited to your needs.