Redundancy And Your Company Pension (40 second read)
- Are you facing compulsory redundancy or considering taking voluntary redundancy?
- Have the implications of how you take your redundancy payment been properly explained to you?
- Have you previously taken redundancy from a job where you were a member of a pension scheme?
When being made redundant you may pay less tax on your redundancy payment if you sign a waiver of your right to take a tax free lump sum from your pension scheme. At some point in the process a form will be put on front of you asking you to indicate your choice.
The most obvious issue which you must consider is the projected benefit from retaining the right to take a tax free lump sum versus the amount of tax you will save now, however there are a number of other issues which also need to be considered.
This is an important financial decision so it is critical that you obtain independent advice in relation to it. Too often people are given little guidance and they make a guess at the correct option, often under pressure from their HR Department to return the option form. It’s an area in which a good Financial Adviser can make a significant difference for their client.
If you are being made redundant or are considering voluntary redundancy we can help you.
Indeed, if you have been made redundant in the past and you don’t know what choice you made regarding your redundancy payment you should seek advice. We can show you how to recover your right to take a tax free lump sum from your pension.
Contact us today on 01 546 1100 for a no obligation discussion or book a 15 minute video call with us here.
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