Retrenchment can happen when you least expect it, causing considerable stress for most people.
Retrenchment can happen when you least expect it, causing considerable stress for most people.
The most recent Australian Bureau of Statistics’ Retrenchment and Redundancy survey1 showed that 77% of people retrenched in the prior three years were given less than five weeks notice of retrenchment, and 25% were given less than one day.
Shaun Williams from Norwich Union Australia says many people who receive a substantial retrenchment payout recognise that professional financial advice is beneficial.
“Whether to roll-over a bona fide retrenchment payment, what to do with your superannuation and, more generally, how to invest your retrenchment sum are decisions that need to be taken fairly quickly,” he said.
“Just as important, but often overlooked, is the importance of life insurance at this time.”
Many employees superannuation schemes include a life insurance component that provides for a lump sum payment (in addition to the accumulated amount in the fund) to dependants in the event of the death of the worker.
On leaving work, this cover could lapse.
In some cases, the life insurance cover may be carried on with the same insurer, usually without the need to undertake any further assessment.
“We find many people in Norwich Union employers superannuation schemes maintain both their superannuation and the associated life insurance cover when they leave their employer through redundancy,” Mr Williams said.
“The death or disability of a spouse or parent is traumatic whatever the circumstances. But the economic impact can be ameliorated if life insurance is in place.”
16266.0 – July 2001. Released 2 August 2002.
-ends-
For further information, please contact:
Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632
Notes to editors:
- Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company to Norwich Union. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is the worlds seventh-largest insurance group and the biggest in the UK. It is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$68.32 billion, and more than A$488 billion of assets under management (as at 1 July 2003). The group has more than 59,000 employees and 25 million customers worldwide.
- This document does not contain all the terms and conditions attaching to product benefits and options. For a full list of terms and conditions please refer to the Offer Document. A policy for insurance cover or an application for an issue of an interest as described in this document can only be effected after completion of the application form contained in a current Offer Document for the product.
The information in this document reflects Norwich Union's understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended, to be comprehensive or a substitute for professional advice on specific circumstances.
The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.