The dilemma of voluntary redundancy

The dilemma of voluntary redundancy

21 November 2018 - posted in Lifestyle and Pre-Retirees by Lachlan Harvey


If you’ve ever dealt with a compulsory redundancy, the dilemma of deciding upon a voluntary redundancy may seem trivial.

However, deciding between continuing at work or taking the money and running is rarely as easy as it seems.

The offer of voluntary redundancy often comes at a time when the workplace is changing drastically, job roles are being redefined and shuffled. Workplace morale may be at an all-time low. Career uncertainty may be at an all-time high.

Even more uncertain is the option of taking a lump sum payment. Even once you’ve received financial advice on the tax implications, Centrelink waiting periods and super implications, there is still an enormous decision to be made. It’s a personal decision that often effects an entire family.

A client mentioned to me recently that he thought he was too young to be retired, but a little too old to retrain and adapt to the demands of a career shift. While contemplating the issue from as many angles a possible we couldn’t help but stumble across a few a conflicting (and mostly unhelpful) proverbial musings.

“…all that glitters is not gold.”

“…a bird in the hand is worth two in the bush.”

“…a change is as good as a holiday.”

Dealing with Redundancy? Here are my top 3 tips:

  1. Write out the pros and cons in two distinct categories; financial and personal. Being human, we tend to overemphasise the negative aspects of change. Don’t dwell on the worst that can happen. Consider equally the question of; what is the best that could happen?
  2. Get professional advice. Make the most of your Financial Planner by discussing your situation as early as possible. Don’t forget to also seek expert advice from a career perspective. Self-employment, casual, part time and consultancy work might all be options. Recruitment agencies and careers councillors can help, but so can your friends that have successfully transitioned careers themselves.
  3. Whichever option you choose, find a way to be physically and emotionally healthy. It’s not all about the money.

 

Lachlan Harvey


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