Redundancy Packages & Pensions at Allied Financial
Are you a Member of a Company Redundancy Scheme with these Companies?
Redundancy packages and offers have become quite frequent over the past 12 months. Financial institutions such as Ulster Bank, Bank of Ireland, AIB, KBC, Permanent TSB have recently offered redundancy packages to their employees. Other former semi-state bodies such as Eircom and Aer Lingus as well as a plethora of multinationals over the last eighteen months been offering Redundancy packages and Enhanced Transfer Value of their pension scheme to both their current and ex-employees.
If you are one of those people who have recently been offered or is now considering applying for a redundancy package from your employer, it is very important to educate and clearly understand all the options available to you.
It is important to break down the redundancy package offered into two areas:
- Your Pension Entitlement,
- Your Redundancy Package.
The redundancy drawdown options that you choose can have a significant impact on the Tax-Free Lump sums that you qualify for from both your Redundancy package and your Pension entitlements.
You have a lifetime limit of €200,000 tax-free for redundancy payments and a lifetime limit of €200,000 tax-free for pension lump sums.
Here are our top 3 things You can do next to support you make the right Redundancy plan;
1. Request your FREE Companies Pension Guide now. Get in touch and we’ll send it out to you. Email info@alliedfinancial.ie
2. Get in touch and make an appointment for a FREE Redundecny Pension Package Analysis, with absolutely no obligation to follow on.
In most circumstances, a redundancy package is offered to employees who have accumulated many years of service with their employer. Redundancy entitlements are earned once you have worked for two or more years with this company. Each Redundancy packages needs to be analysed on an individual basis as each package can be calculated differently – depending on their circumstances (years of service, average salary over their employment etc).
3. With a lot to consider, your best option is to talk to your financial advisor and at Allied Financial, we have the experience of guiding those who have been made or have taken redundancy, arming them with a plan and guiding them on the correct pathway for their personal redundancy and pension journey.
Remember you do have a lifetime limit of €200,000 tax-free for both redundancy payments and tax-free for pension lump sums, ensure that you are maximising both by speaking to a Financial Advisor/Allied Financial before you complete your redundancy papers.
In a Redundancy situation a key concern for the employee is often the interaction between their redundancy payment and their accumulated pension benefits from that employment.
Should you have any queries or the above or wish to speak to a financial advisor with no obligation to continue, please contact us on 096 60044 or email info@alliedfinancial.ie
