Prospering after late-career redundancy
Career transition, both planned and unexpected is a fact of life for senior professionals and executives in today’s workforce. Merger and acquisition, consolidation, liquidation, automation and recalibration; the machinations of corporate enterprise result in career transition for thousands of talented, high performing and financially successful Australians every year.
Redundancy is a deeply personal and unsettling experience
We’ve supported many professionals through the financial planning impacts of late-career redundancy who have gone on to become satisfied clients, achieving their long-term goals despite the unexpected detour.
While latest ABS figures show career transition is more common than ever (redundancies have increased 45% since 2017) every client we work with will tell you it is a deeply personal and unsettling experience, that brings both challenges and opportunities unique to their circumstances and goals.
Redundancy prompts bigger financial planning questions for executives over 55
Even welcome career change in mid-life comes with moments of self-doubt, fear and revaluation; however, for those aged over 55 but still some way from retirement the challenges can be unexpected and overwhelming.
The senior executives I’ve met have worked hard for their success and have made sacrifices to achieve financial security. At this stage of life, they are typically consolidating their investments after decades of climbing the career ladder, paying mortgages and private school fees. They may have had a clear plan for the future, then suddenly the rug is pulled out from under them by redundancy and they can feel like they are running out of time to achieve their financial goals.
Taking stock and securing your financial future – is early retirement a possibility?
For younger professionals the post-redundancy focus may be on protecting their savings and trying to secure their desired income in their next permanent career move, but the late-career transitioner must take stock of the much wider picture.
Clients I work with at this stage often begin to re-evaluate their overall retirement plans and think about transitioning to a portfolio career – like taking up non-executive board position, pursuing philanthropic goals or even going out on their own to consult.
Some realise early retirement is possible after we work with them to model a range of scenarios. They then have to consider how to phase into retirement and how to optimise their asset and investment mix, which can also give rise to complex estate planning questions, such as providing for children, blended families or elderly parents.
In these situations, good financial advice makes all the difference, providing peace of mind and a roadmap for funding their chosen lifestyle now and into the future.
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Geoff and Fiona Freeman
I turned to Richard Dahl for advice about managing a small portfolio of shares when I was just 21 and working at Mitsubishi. When I got my first well-paid job at 23, I used his advice again to get serious about building my superannuation. My goal then was to retire at 50. I’m now 55 and semi-retired, set to retire fully next year. Richard’s advice has seen us through everything from paying off the house, to the kids’ education and making the most of a redundancy package. Our relationship with Richard has also helped cement our financial goals as a couple. The annual review meeting has kept us on track and it’s been great to see our savings and investment projections turn into reality over the years. After all the hard work and raising two independent daughters, we’ve gone full-circle and now it's time for us again.
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Cliff Wright
I first met David Batchelor when I took a voluntary redundancy five years ago. David helped me move from a defined benefit scheme into a super accumulation fund and plot a path to early retirement. It was refreshing to meet a professional and knowledgeable adviser who was more interested in my needs than their own. Under David’s guidance I now have more money than when I started investing with FMD Financial, even though I’m drawing a comfortable monthly income stream. Life is short and I’m enjoying the retirement lifestyle I want with the confidence my money will last for the long haul. I've met other FMD clients at their regular events and no-one has a bad word to say about them. I'd certainly recommend David and the team to anyone facing redundancy and looking for expert financial advice.
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Helen Opie
I was a couple of years away from retiring when my job in the IT industry was made redundant. I was uncertain about the future and knew I had to be careful with my money. Seeing Jason Calleja at FMD Financial cleared the fog. He showed me how to use my payout, super and other assets to create an income that would give me the lifestyle I wanted in retirement. Now I'm busy doing the things I love - volunteering, travelling and spending time with family and friends.
I'd recommend FMD to anyone looking for advice on redundancy or retirement.
Whether your role has been made redundant or you’re contemplating a career move, if you are asking yourself any of these questions, you could benefit from professional financial advice:
- Whats the best way of managing or investing my redundancy payment to improve my financial position? e.g. Reduce debt, minimize tax, invest
- Do I have enough personal insurance and is it still current?
- Is it time to review my superannuation for optimal returns?
- Do I understand the financial implications of any career decision I may be considering?
- What is my overall financial position and what are my personal and financial goals?
- Will I achieve a comfortable retirement?
- How do I build wealth and find someone to help me achieve this?
Things to consider to maximise health, wealth and happiness during career transition
Taking the next step
If the issues raised in this article resonate with you, or you know someone who could benefit from sound financial advice after late-career redundancy, please contact your FMD adviser or, if you’re new to FMD, make an appointment to come in and see me for a confidential chat.
Have questions about redundancy'?
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977.