Redundancy in Your 50s: Turning a Career Setback Into a Fresh Start

Facing redundancy in your 50s can feel overwhelming. It often arrives without warning and brings a mix of emotions — shock, disappointment, uncertainty, and even relief. But while it can be a major life disruption, it can also be the beginning of a new chapter.

With careful planning, the right financial advice, and a forward-looking mindset, redundancy in your 50s can become an opportunity for reinvention — professionally, personally, and financially.

Understanding Your Redundancy Payment

When you’re made redundant, you may receive a redundancy payout, which can include:

• A tax-free component, depending on how long you’ve worked with your employer
• Taxable components like unused annual leave or long service leave
• Ex gratia payments or additional amounts above legal entitlements

The structure of your payment can affect how much tax you pay — so it’s important to understand your options and plan how to use it wisely.

Making the Most of Your Payout

You may be tempted to use your redundancy payout to take a break or pay off debts — and for some, that can make sense. But it’s also a good time to pause and ask:

• How long will the payout last if I don’t find work right away?
• Can I use part of it to boost my superannuation?
• Should I pay off my mortgage, or keep more funds in accessible savings?

Every person’s situation is different, so it helps to speak with a qualified financial adviser before making big decisions.

Exploring Your Next Move

If you’re not ready to retire, redundancy could be the push you need to explore a new direction — whether that’s a new job, part-time work, starting a business, or changing industries.

Things to consider:

• Upskilling or retraining to stay relevant in a changing job market
• Seeking out age-friendly employers or flexible work arrangements
• Consulting, freelancing, or turning a passion into a side income

While age discrimination does exist, many employers value experience, leadership, and maturity — qualities that people in their 50s have in abundance.

Retirement Planning After Redundancy

If you’re financially secure and nearing retirement age, redundancy could also be an opportunity to transition into retirement sooner than expected. Now is a good time to:

• Review your superannuation strategy
• Check your eligibility for the Age Pension or other benefits
• Reassess your retirement goals and lifestyle expectations

Even if retirement is still years away, redundancy gives you a reason to take stock and plan ahead.

Don’t Go It Alone — Get the Right Advice

Being made redundant can feel isolating, but you’re not alone. A trusted financial planner can help you:

• Structure your redundancy payout in a tax-effective way
• Budget for the short and long term
• Decide whether to return to work, retrain, or retire
• Create a roadmap that aligns with your values and goals

Final Thoughts

Redundancy in your 50s can be daunting — but it can also be empowering. With the right advice and a fresh perspective, it might just be the turning point you didn’t know you needed.

If you’re facing redundancy and wondering what comes next, now’s the time to take control of your future and contact one of our Fiducian Financial Advisers for a complimentary initial consultation.

Source: fiducian.com.au

Lindale Insurances Pty Ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a Franchisee of Fiducian Financial Services Pty Ltd, Level 4, 1 York Street, Sydney NSW 2000. AFSL 231103 ABN 46 094 765 134.

The information (including taxation) provided on this website is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.