Is your job at risk? Act now to secure your financial future
What action can you take to secure your financial position if your job is at risk, or you are considering acceptancing a voluntary severance?
Here are some of the things you should consider:
- Work out how much you spend a month. Remember to include your mortgage repayments, insurance, council tax and other bills. Make sure you include any direct debits and standing orders. What is the shortfall between your total expenditure and any income you may receive when you are out of work? Can you reduce your outgoings?
- Do you have mortgage payment protection insurance? If so can you claim on it? Should you ask to reduce your monthly repayments or ask for a repayment holiday? You should tell your mortgage lender about your situation, as they are likely to be more flexible if you do need to reduce your repayments.
- Do you have any other loans? If so, what can you do to reduce them or pay them off?
- Have you (or will you) receive a lump sum payment as part of your voluntary severance package? If so, how can you make the most of it? What should your priorities be?
- Should you invest part or all of the lump sum?
- Will you be able to claim benefits? Any savings, including your lump sum payment, could affect how much you receive.
- Is early retirement an option? However, you need to make sure that you will have enough retirement income to live on comfortably, now and in the future.
- Have you lost valuable benefits such as life assurance or private medical cover? If you have, you may want to consider replacing them. Do you want this if you are trying to reduce costs?
- You should review any savings and investments you already have to see whether they could produce much-needed income or simply to make sure they are invested in line with your needs and attitude to risk.
- How can you generate more income? Could you rent out a room in your home? Any rental income could be tax-free.
- What about your pension arrangements. Contributions from your previous employer will cease and you will probably want to stop any additional contributions you usually make, at least until you get another job.
Complementary financial planning seminars for people at risk of losing their job
We run seminars about how to cope with the financial impact of taking voluntary severance. These are usually held at your place of work, or similar location.
These will help you work out exactly where you are financially and what action you should consider taking in light of your loss of income. We also look at how you can best use any lump sum payment you receive and, depending on your age, whether taking early retirement might be an option.
Arrange an event.
Complementary, no obligation initial consultation
You may prefer to arrange a complementary, no obligation initial consultation with one of our qualified advisers. Book your appointment online or call us now on 0800 85 85 90.