Geshy Singh

Being retrenched is a traumatic situation but knowing your rights and making heads and tails of all the information at hand assists you in making an informed decision.

Remember the choice you make now will impact the rest of your life so seek professional advice from not only a qualified but experienced planner who is able to specialise in this field. The correct advice will certainly minimise your financial worries and assist you in your future decisions.

Your Human Resource Department should provide you with important information that you can provide to your planner to assist in your planning. This will include values allocated to your severance pay, outstanding leave that must be paid out in full, notice pay may vary depending on your employment contract.

Depending on your employment contract, you may potentially be entitled to a pro-rata payment of your annual bonus, and of course the balance of any pension or provident fund benefits.

Your planner will certainly be able to minimise the tax implication, which I find many individuals who are being retrenched are advised against simply to make a quick and easy payment exit. Be wary of this and conduct your financial affairs in proper! Remember a large voluntary disinvestment option results in a huge tax payment.

Can you afford to do this and how will you recoup that, if ever? There are preservation options that will certainly assist in in reducing tax costs in the transfer but an efficient planner will be able to discuss with your options.

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