Redundancy is rarely part of the plan.
Especially for senior professionals and executives who’ve spent years building careers, leading teams, and delivering outcomes. When it arrives, often without warning, it can feel deeply personal. There’s the shock of change, the weight of uncertainty, and the quiet questions about what comes next.
I’ve sat across from clients in these moments. I’ve seen the mix of emotions – disappointment, frustration, relief, even a sense of freedom. And while the headlines focus on payouts and packages, the real challenge lies in navigating the transition with clarity.
At Capital Partners, we understand that redundancy isn’t just a financial event – it’s a life event. And handled well, it can be a powerful reset. A chance to pause, take stock, and build a more intentional future.
Calmly respond or emotionally react?
Redundancy packages for executives and long-standing employees are often substantial – but they’re also complex. Without the right guidance, it’s easy to fall into common traps that erode long-term wealth or delay recovery.
Here’s what I often see:
- Rushed decisions – paying off debt too quickly, investing without a plan, or making reactive choices under stress.
- Tax inefficiencies – poorly structured termination payments or incentive accelerations triggering avoidable tax liabilities.
- Lifestyle drift – overspending from the payout, or becoming overly cautious and missing opportunities.
- Unstructured transition – moving from a high-income role to “what’s next” without a clear plan or purpose.
Financial resilience starts with a plan
Handled well, redundancy can be a springboard. It’s a chance to reassess priorities, strengthen your financial foundation, and create a strategy that supports both lifestyle and long-term prosperity (discover your Prosperity Score).
Here’s how I help clients turn disruption into direction:
- From numbers to reality
Understanding how redundancy payments are taxed, especially eligible termination payments, can reduce unnecessary tax. Timing, structure, and advice matter. One client, a senior geologist, was able to preserve over $40,000 in tax simply by adjusting the timing of their payout and super contributions.
- Rebuilding core wealth
A payout can be used to strengthen the family balance sheet. Clarifying the goals that require money and planning helps allocate funds into the right structures – like superannuation, investment portfolios, or family trusts. I worked with an oil & gas executive to restructure their portfolio post-redundancy, reducing risk and improving liquidity while keeping their long-term goals on track.
- Cashflow clarity
Planning for the months ahead gives breathing room. A clear cashflow runway means you can choose your next step with confidence, not urgency. One couple I worked with, both engineers, faced simultaneous redundancy. By mapping out their cashflow and adjusting their protection strategy, they were able to take a six-month sabbatical without compromising their future plans.
What’s next?
Redundancy can be a reset. For some, it’s a chance to start a business, take a career pivot, or simply enjoy time with family. I recently helped a project manager use their payout to launch a consulting business – they’re now thriving with greater flexibility and purpose.
If you or someone you care about is facing redundancy, now is the time to plan, not react.
