Mark Devlin: Is redundancy sacrifice an elegant solution to a complicated problem?

Consequence of pandemic

clock • 4 min read

While being made redundant can be worrying considering a pension contribution can help clients to maximise the opportunity financially, explains Mark Devlin

One of the unfortunate consequences of the pandemic was a rise in redundancies. Obviously, it's a worrying time for those affected, but as with any situation it's good to try and make the best of it. When you look at the numbers, using the taxable redundancy payment to make a pension contribution, where possible, makes good financial sense, especially for people who are nearing retirement age. How are redundancy payments taxed? The first £30,000 of a redundancy payment is paid free of tax, to both the individual and the employer. The important thing to remember is that this applies...

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