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Redundancy

Redundancy - a couple in their home

If you have lost your job or are worried about being made redundant, there are steps you can take to ease the financial pressure. Redundancy can be distressing, but it may also open up new opportunities. The best thing you can do is be prepared. By sticking to a budget and having savings set aside in an emergency fund you’ll be better placed to cope with the initial shock and stress of losing your job.

Review your budget

If you lose your job you’ll need to take a close look at your budget to see how your household can cope with reduced income. If you have an emergency fund or a redundancy payment, work out how long it will last.

Use our money planner to make or review your budget. If you need personal help, call New Zealand Family Budgeting Services on 0508 283 438.

Campbell MacLean

When Campbell was made redundant he was able to fall back on skills learned from a hobby to earn a living.

Read more about Campbell MacLean

Seek government help

You may be able to get government help - check the Work and Income website

There’s also information on dealing with redundancy on the Careers New Zealand website.

Talk to your bank

Talk to your bank right away if you think you’ll have trouble meeting debt or mortgage repayments. They will have options they can talk through with you.

Try not to miss a payment before you get in touch.

Check your insurance

If you have repayment insurance as part of a personal loan or hire purchase agreement it may cover payments if you are made redundant. Check your policy document for details.

Redundancy insurance is also available on its own or as an add-on to life insurance – check your policies to see if you have this type of cover.

Find out more about insurance.

Know your rights

Check your employment contract to see if you are entitled to a redundancy payment and how much it would be. 

Find out more about your rights on the Department of Labour website.

Be prepared

The key to coping with redundancy is being prepared before it happens. Ideally, you should aim to have access to the equivalent of two to three month’s income as an emergency fund you can call on if you need it. But anything is a start.

Find out more about saving.

If you have high interest debt, you might be better to pay that off before you start saving.  Find out more about managing debt.

Where to go for help