Redundancy is the process of terminating someone’s employment because the job is ‘no longer needed’. It can come as a shock, leaving many worried about their financial status. Just how would you pay the bills if you were made redundant?
Speed and shock of redundancy
In 2009, redundancies peaked with 12.2 workers in every 1,000 made redundant in the UK. The economic crash of the previous year left many people looking for work. A decade on, the economy is slowly recovering but redundancy is not a thing of the past. Office of National Statistics data shows that at the tail end of 2018, 3.2 in every 1,000 workers were facing redundancy.
It is possible to forecast redundancies in some instances but for many, being told their job no longer exists and that they shouldn’t turn up for work in the morning can come out of nowhere. Many people have been served their notice as they were leaving work at the end of the day or a shift.
Although they will receive a redundancy payment, when this arrives and how much it will be can vary from person to person. In the meantime, you will still need to pay your bills.
How to recover from redundancy
When the shock of being laid off finally passes, @IntelPeople suggest that taking a pragmatic and considered approach post-redundancy can be the foundation for bigger and better things.
Allowing yourself time to grieve and to be angry is key to processing the emotional fallout of such a life-changing event. Once the worst has passed, you can begin to consider the future and what it is you’d like to do. Some people take the opportunity to retrain, taking on new skills in a new market where they will find a career role that promises to be lucrative, challenging and satisfying.
There are also heart-warming stories of people setting up their own business with their redundancy money, carving out a new and successful career.
Can you financially protect yourself from redundancy?
As useful as the above suggestions are, there is one issue that has yet to be resolved: your financial situation.
Whilst the suggestions for retraining or starting your own business are all well and good, they are in the future. How will you pay your mortgage next month or the month after if you have no income? Redundancy insurance cover may be the answer.
Finding the right cover for you
Like all insurance policies and products, the right one should be tailored to your specific circumstances. And that means you need tailored advice as to the best products to ensure that, should the worst happen and redundancy does hit, you have peace of mind your mortgage will be paid, along with other important outgoings.
To find out more about redundancy cover, contact the team.
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Written by: Cambridge Web Marketing