What to consider when faced with redundancy

With budget cuts comes potential staff reductions. This can mean suddenly facing a major decision – do I take a package? Do I ‘cut and run’?

While a lump sum payout can look attractive on the surface, careful thought is needed before reaching a decision. Here are some matters to consider.

Financial advice: seek advice from a financial planner about your options, the state of your finances, whether you can fund an extended period of time with no income.

Accounting advice: also seek advice from your accountant about your options, taxation status, cash flow, budgeting.

Business advice: if you are considering starting a business or becoming a contractor, in addition to your accountant, seek advice about what is involved in starting and building a business. While some capital is a help to cover set up costs, there is more to starting a business than printing a business card.

Wellbeing advice: staying healthy is vital to living a long and enjoyable life. This might be a good time to have medical check ups so that you continue to eat well, exercise, monitor any conditions and generally stay fit and healthy.

Career advice on early retirement: if you are considering early retirement, then in addition to the above advice, you may wish to seek help from a career coach/practitioner. Choosing retirement is a complex decision. In addition to considering what ‘retirement’ means to you and whether you can fund this stage of your life, you need to also consider whether you will seek other forms of paid work, how you will structure and fill your day so that you new life has meaning and purpose, what impact retirement will have on family and friends. You will need to consider the emotional impact of no longer working, particularly if you hold a senior job that brings status and which gives you a strong sense of identity. Plus it’s worth considering how you will transition out of your current role and into the next phase. How do you want the final weeks to play out? What would you like to have happen on the last day? Some people are happy to just walk out the door. Others will want some form of recognition of their contribution.

There is evidence that those who do some planning are more likely to have a successful retirement or Third Age.

Your retirement could be 20 or 30 years long. This is a significant phase of your life, so it is not to be entered lightly.

Other useful articles:

• What is your retirement song? 
• Why be a career activist?

Dr Ann Villiers, learning guide, professional speaker and author, is Australia's only Mental Nutritionist® specialising in mind and language practices that help people build flexible thinking, confident speaking and quality connections with people. Visit www.mentalnutrition.com to learn more about Mental Nutrition. Visit www.selectioncriteria.com.au for free resources unlocking the mysteries of public service jobs.