In an uncertain world, unfortunately one of the consequences that may become reality is redundancy. Understanding retrenchment and redundancy and their financial implications has become more relevant than ever before.
Redundancy generally makes for a stressful time where important lifestyle and financial decisions need to be made. Fully understanding the financial implications of redundancy, such as tax consequences and changes to social welfare entitlements can be a complicated process.
To ensure a favourable outcome from your redundancy package, it’s essential to adopt strategies advantageous to your individual circumstances. Tax, for instance is a complicated area given each component of the redundancy is taxed differently and therefore careful consideration needs to be applied to individual circumstances.