The GFC hit Baby Boomers (who are now over 50) not once but twice paving the need to learn more about handling redundancy. Many lost wealth and were feeling that they‘d need to work past retirement age in order to have enough assets to support them. If that wasn’t bad enough, a large number have also been made redundant.
Anyone I’ve ever spoken to about handling redundancies has said they wish they’d been on their last salary for another two years. Hindsight is a wonderful thing, but clearly not much use in this instance. Instead, read about 5 simple steps Boomers can take to remain in control despite uncertain times, and to feel confident in their financial future.
5 Steps for Handling Redundancy in Brisbane
While the emotional consequences of facing redundancy are fairly well known, the financial consequences are less well understood. In our experience, too many Boomers are lulled into a false sense of security by a generous redundancy payout, and fail to look ahead.
1. Seek help From the experts
Seek advice from reputable professionals who have seen your situation before. At a time when you may be feeling both angry and upset, they will offer objective and personalised support on how best to manage a significant change to your financial situation.
2. Review your budget
Reassess your spending needs and wants and learn to anticipate cashflow problems. Recognise that (despite a healthy bank balance, thanks to your payout), you may not be able to continue spending as before given that there won’t be regular income for a period.
3. Check your mortgage
Depending on your circumstances, your adviser may suggest setting aside 6 months’ repayments and setting your mortgage to draw against these funds rather than your general account. Another appropriate redundancy strategy may be to arrange to make interest-only payments for a while, or to request ‘deferral’ or ‘hardship repayments’.
4. Never forget your insurance
Think twice before cancelling income protection as it may be much harder to take out once you’re working again. Your adviser will be able to show you how to include your insurance premiums in your revised budgeting.
5. Manage your debt
Depending on your age, it may be possible to withdraw super in order to pay down some debt.
We Are Experts in Handling Redundancy
The strategies outlined in steps 1 to 5 would be best implemented as part of a coordinated overall plan that addresses the short, medium and long-term consequences of redundancy in your individual situation.