For some people, redundancy in your 50s or 60s is the ideal way to begin transitioning to retirement.
“A redundancy payment can give you enough money to be able to work less,” Taaffe says.
“A large payment might allow you the financial freedom to start working less… perhaps not in your ideal job but in a transition towards retirement.”
For those with access to their superannuation, taking some of your super through a ‘transition to retirement’ product could be an option. You might, for example, be able to draw a modest amount from your super, not eating into it too significantly, while also working part-time to make up the shortfall. What is appropriate for you will depend on your specific personal circumstances.
Use the government's MoneySmart retirement calculator to work out the income you're on track for.
Finally, once the initial shock is over, redundancy can lead to new options and new ways of thinking. Some embrace the freelance life, some focus on enjoying their free time more, and some retrain in an area that’s always interested them, some getting a better job.
“Even if your earnings have been reduced,” Taaffe says, “with some careful planning you might actually be better off.”
Request a complimentary financial planning consultation
With so many options, it’s a good idea to seek help to ensure you’re investing in a way that suits you. You can talk to your financial adviser or set up an appointment with a NAB financial adviser by calling 1300 558 863 (Mon-Fri, 9am-6pm AEST/ADST).
For more information, help with your questions and general advice, call MLC on 13 26 52.