It is essential that you understand your financial position at this time of change as virtually all parties connected to a career transition will suffer from a level of financial stress.  This stress is generated from either or both of the following

• Concern for immediate security and the maintenance of lifestyle expenditure.
• Realisation that their long term financial security is in their hands alone.

These factors result from the removal of the comfort factor provided by the employer.

The key aspect to identify with these financial stresses is that it is not necessarily related to the funds provided on termination or other funds available at the time of termination. Some individuals maybe stressed because of the belief that they have insufficient funds to maintain a lifestyle and uncertainty that the situation can be remedied. Other individuals are concerned because of the apparent abundance of funds and the responsibility they feel not to waste or otherwise inadequately manage those funds.

The key aspect of the financial counselling is therefore to ensure that the individual gets their financial situation into a realistic perspective and to recognise that support exists.

You may wish to arrange to see a Financial Planner. Crossroads would be happy to refer you to a contact should you not already have one.

A Financial counsellor/planner will be able to help you to:

1. Identify funds available from all sources.

2. Advise of the tax treatments applicable to these funds and the advantages and disadvantages of roll-over options.  (where applicable).

3. Ensure that the job search will not be unduly influenced by immediate cash flow needs.

4. Propose a short term plan.

5. Emphasise the importance of both access to and security of funds.

6. Ensure the candidate is aware of the life and disability insurance cover gap that occurs when they leave an employer superannuation fund and recommend options to cover that gap.

7. As a result of their changed financial circumstances, recommend they consider reviewing their existing Wills.

8. Advise whether or not unemployment benefits are available to them and if so how they go about enrolling for these benefits.

9. Ensure they are aware of the importance of maintaining documents associated with the termination and possibly the advantages of using a tax agent for the preparation of their next income tax return.