Leaving a job, whether through resignation, redundancy, or retirement, can be a significant life event with major financial implications. It's a crucial time to review your finances and make smart decisions about your superannuation and other entitlements.

What Happens to Your Super?

When you leave a job, your superannuation remains invested. You have several options for what to do with it:

• Leave it in your former employer's fund: If you're happy with the fund's performance and fees, you can choose to leave your super where it is.

• Roll it over to a new fund: You can consolidate your super into your new employer's fund or a personal fund of your choice. This can make it easier to manage and may save you money on fees.

• Access your super: If you are retiring and have reached your preservation age, you can start accessing your super as a lump sum or an income stream.

Redundancy and Termination Payments

If you are made redundant, you may receive a redundancy payment. A genuine redundancy payment receives concessional tax treatment, with a portion being tax-free. Other payments you might receive when you leave a job, such as payments for unused annual and long-service leave, are taxed differently.

Transition to Retirement

If you've reached your preservation age but aren't ready to retire fully, a 'transition to retirement' strategy could be an option. This allows you to access your super as a non-commutable income stream while you continue to work, either full-time or part-time. This can help you reduce your working hours without reducing your income.

Leaving a job is an excellent opportunity to seek financial advice. A financial planner can help you understand your options, make informed decisions, and ensure you're on track to meet your long-term financial goals.

General Advice Warning:

The information provided in these articles are of a general nature only and do not take into account your individual objectives, financial situation, or needs. You should consider whether the information is appropriate for you, having regard to your personal circumstances. Before making any financial decisions, we recommend consulting a licensed financial adviser to assess your specific needs and circumstances.