Redundancy payments can help cover debt or mortgage, says WEALTH at work
WEALTH at work outlined key areas to consider for those made redundant.
WEALTH at work suggests that using redundancy payments for debt repayment or mortgage overpayment might be beneficial, depending on individual situations.
This comes after the recent CIPD’s Labour Market Outlook, which revealed that 25% of employers planned to make redundancies in the early months of 2025.
WEALTH at work outlined key areas to consider for those made redundant.
Employees may be entitled to redundancy pay, which depends on factors like age and job tenure.
Taxation on redundancy payments means the first £30,000 is tax-free, but amounts over this are taxed at the marginal rate.
Reviewing financial positions, assets, and liabilities is crucial for planning expenses, according to WEALTH at work.
Employees close to retirement might consider retiring earlier, while also checking what happens to their workplace pension if they are laid off.
They advised caution against scams and suggested thorough checks on investment firms before any money transfers to ensure they’re FCA-regulated.
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