If you've been made redundant
If you've been made redundant, you're facing a number of important financial decisions, including how best to use your redundancy payout. There are also important considerations about your super. Find out how your super may be impacted and how we can help you plan through this uncertain period.
In the print, media, arts and entertainment industries redundancies are unfortunately a harsh reality of the current working environment, and you never know if they could one day affect you.
The redundancy process can be difficult and, along with the stress of contemplating your next career step and finding a new job, you usually have to make many important financial decisions. A lot of these decisions are probably about your redundancy payout – how long will it last, should you invest or should you pay off debts – but there could also be some important decisions to make about your super.
Your redundancy payment
A genuine redundancy payment is calculated by your employer and is usually based on your salary and years of service. It may include three parts:
- tax-free amount
- employment termination payment
- unused leave and unused long service leave payments.
Take the time to consider how best to use your redundancy payment. Depending on your situation and how quickly you move to a new role, you may need these funds to maintain your lifestyle, including bills and loan repayments.
Our team may be able to help you plan how to use your redundancy payment. Get started by calling the Helpline on 1800 640 886.
What happens to your super when you leave your employer
If you’re a Media Super member
If you’re currently a Media Super member, your existing super will be unaffected by your redundancy. Fees and costs, your investment choices and investment performance will not be affected.
Your insurance cover for Death, Total and Permanent Disablement, and Income Protection will continue provided you have sufficient funds in your account to cover the premiums (subject to conditions). However, Income Protection cover will cease after 12 months of unemployment.
If you belong to your employer’s corporate fund
Some large employers, such as media companies, have corporate funds for their employees. If you leave the company or are made redundant, your entire super balance may be transferred into another plan run by the same administrator – but that doesn’t mean your super will be handled the same.
Make sure you check out the features of your new plan to ensure that:
- you are not going to be penalised with higher fees
- your money has been transferred to an investment option that’s right for your stage of life and your risk comfort level
- you have been provided with the same, or similar, level of insurance cover.
By taking control of your super and ensuring that you’re in a fund that suits you, possibly with low fees, strong investment performance and cost-effective, comprehensive insurance cover, you’re taking a step in the right direction in improving your retirement.
You can compare funds and see what’s best for you at moneysmart.gov.au or see how Media Super compares.
We're here to help
In times of uncertainty, it can help to discuss your financial situation with an expert. Our Media Super Financial Planners* can help you understand your current position, determine what your goals are and look specifically at your superannuation and retirement planning needs.
Find out more about how we can help or call us on 1800 640 886.
*Media Super Financial Planners are Authorised Representatives of Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514.