EUGENE ANTAK: Losing your job need not be the end of the world
When it comes to the severance package your employer may pay you, it is important to understand the implications
Retrenchment can be devastating as it affects your financial security and your sense of worth. And it is not uncommon in times like these, when the economy is in recession and employers cut expenses such as salaries by letting people go or putting them on shorter hours. Remember, the current trend is that people no longer remain in the same job for more than five years. Most people will have more than one career in their lifetime. When it comes to the severance package your employer may pay you, it is important to understand the implications, especially regarding tax. Seek financial advice and plan the best use of your package.
You are likely to lose your group life benefits. Establish whether there is a continuation option and if you can afford the premiums. This is usually only possible for up to 30 days after your contract has been terminated by your employer. Alternatively, consider new risk cover. If you have your own risk policy, it might be necessary to inform your insu...