Being told your role has been made redundant can be unsettling at any age. But when it happens in your 50s or 60s — particularly when retirement is starting to come into view — it can feel as though plans you had carefully built have suddenly been thrown off course.
There are the immediate financial questions:
How long will my payout last? What happens to my super? Should I pay down the mortgage?
But there is often another, equally important question:
What do I want the next stage of my working life to look like?
“Redundancy later in your career can feel incredibly confronting because it affects much more than your income,” says Christine Swanson, Owner and Financial Adviser at Prominent Financial Services. “It can change how you see your retirement plans, your career and even what you want the next few years of life to look like. The important thing is not to rush. Take the time to understand your position and the choices available to you.”
Redundancy is becoming part of a changing employment landscape
Australia’s labour market remains relatively strong, but conditions have softened.
Australian Bureau of Statistics data for July 2026 showed the seasonally adjusted unemployment rate at 4.5%, with approximately 691,500 Australians unemployed. Employment fell by around 15,800 people during the month, while the participation rate eased to 66.9%.
For workers later in their careers, losing a role can present additional challenges.
National Seniors Australia recently highlighted concerns around ageism in the workplace, citing Australian HR Institute research indicating that some employers continue to exclude candidates aged 55 and over.
That can make redundancy feel particularly daunting if you had expected to remain with the same employer — or even in the same profession — until retirement.
But it does not mean your working life is over.
First, understand your redundancy payment
Before making any major financial decisions, understand exactly what you are receiving.
A redundancy package can include several components, such as:
- redundancy pay
- unused annual leave
- long service leave
- payment in lieu of notice
- other employment entitlements.
Different components may be taxed differently, so understanding the structure of the payment is important.
Request a detailed breakdown from your employer and consider speaking with your accountant and financial adviser before deciding what to do with the money.
A large lump sum can feel reassuring, but it is important to remember that it may need to replace your regular income for an unknown period.
Protect your immediate cash flow
One of the first priorities should be determining how long your available funds could support your current lifestyle.
Start by reviewing your essential expenses and asking:
- How much do I need each month?
- Which expenses could temporarily be reduced?
- How long would my redundancy payment last?
- Do I have an emergency cash reserve?
- What other sources of income are available?
Depending on your circumstances, keeping part of your redundancy payment accessible in a savings account or mortgage offset may give you flexibility while you work out what comes next.
The key is to avoid feeling pressured into making a major investment or retirement decision simply because a lump sum has arrived.
Before retiring, ask whether you actually want to
For someone approaching retirement, redundancy can make retirement seem like the obvious next step.
Sometimes it is.
But it is worth separating two very different questions:
Can I afford to retire?
and
Do I want to retire?
If you had planned to work for another five years, an unexpected redundancy may affect more than your finances. Work can provide purpose, routine, social connection and a sense of identity.
Retirement therefore should not automatically become the default simply because one role has ended.
There may be several other possibilities.
Could this be the opportunity for a career pivot?
For mature-age workers, redundancy can become an unexpected opportunity to rethink what work looks like.
You may not want another full-time corporate role.
Perhaps the next stage could involve:
- consulting
- contract or project work
- part-time employment
- mentoring
- moving into another industry
- starting a small business
- portfolio work across several roles.
Many mature-age workers have decades of knowledge and experience that can transfer into very different environments.
The Australian Government’s Mature Age Hub specifically notes the value of the experience, skills and knowledge mature-age workers bring to the workforce.
Sometimes the challenge is simply recognising how transferable those skills are.
Is it time to retrain or update your skills?
A career pivot may require some investment.
That could mean completing a short course, updating technical qualifications, improving digital skills or undertaking more substantial retraining.
Before enrolling, think carefully about both the financial cost and expected return.
Ask yourself:
- Will the qualification materially improve my employment prospects?
- Is there genuine demand for this skill?
- Could a shorter course achieve the same result?
- Are my existing qualifications eligible for Recognition of Prior Learning?
- Are there government-supported training options available?
The Australian Government provides several avenues for mature-age workers to explore retraining and career transition.
For example, Career Transition Assistance is available to eligible people aged 45 and over and can help identify transferable skills, improve job-search capabilities and strengthen digital literacy.
Free TAFE and other subsidised training programs may also reduce the cost of retraining.
Investing in yourself can be a very good financial decision — but like any investment, it should have a clear purpose.
Think differently about the value of your experience
Mature-age workers sometimes enter the job market believing they need to compete with younger candidates.
That may be the wrong comparison.
Your value may lie precisely in what cannot easily be taught:
- judgement
- leadership
- industry knowledge
- relationships
- resilience
- communication skills
- problem-solving
- mentoring capability.
The Department of Employment and Workplace Relations describes mature-age workers as bringing a lifetime of experience, knowledge and transferable skills to employment.
The task may therefore be less about starting again and more about reframing what you already know for a different role or industry.
What should you do with the remaining redundancy payment?
If you find another role quickly, or your redundancy payout is more than you need for your immediate living costs, you may have an opportunity to strengthen your broader financial position.
Depending on your circumstances, options might include:
- reducing or clearing your mortgage
- increasing your emergency reserve
- making additional superannuation contributions, within relevant contribution rules and caps
- investing outside super for medium-term goals
- setting aside funds for retraining
- creating a financial buffer that allows you to work fewer hours.
There is no single correct answer.
The right decision depends on your age, tax position, super balance, debt, cash-flow needs and plans for retirement.
Could this become a transition into retirement?
For some people, redundancy becomes the point where full-time work ends — but retirement does not need to begin overnight.
A gradual transition might mean working three or four days a week, consulting periodically or moving into a less demanding role.
This can provide several benefits.
You may continue earning income, preserve more of your retirement savings and maintain the social and personal benefits of work while creating more time for yourself.
Depending on your age and circumstances, there may also be superannuation and transition-to-retirement strategies worth exploring with your financial adviser.
The important thing is that the decision is intentional, rather than simply a reaction to redundancy.
A New Chapter, Not Necessarily an Ending
Redundancy is rarely welcome.
But once the initial shock has passed, it can create an opportunity to reconsider what you want from both work and life.
Perhaps you want to continue building your career.
Perhaps you want to learn something new.
Perhaps you are ready to work differently.
Or perhaps the numbers show that retirement or semi-retirement is now possible.
“One of the most important things we can do at this stage is give ourselves permission to consider more than one option,” says Christine. “A redundancy doesn’t automatically mean you need another full-time job, and it doesn’t automatically mean you need to retire. It can be an opportunity to design the next stage in a way that works financially and personally.”
The Next Step
If redundancy has arrived unexpectedly, try not to make every decision at once.
Start by understanding your financial position. Then give yourself the space to think about what you want the next chapter to look like.
The Prominent Financial Services can help you work through the financial implications of redundancy, understand how different career or retirement choices may affect your future, and build a strategy that gives you greater clarity and confidence.
Sometimes one conversation can help turn an unexpected change into a much clearer set of possibilities.
We understand how there are immediate financial questions, and we’re ready to help. Reach out to our team here.
Sources
Australian Bureau of Statistics, Labour Force, Australia – July 2026.
National Seniors Australia, A workplace ‘grandma’ at 47!, August 2026.
Australian Government Department of Employment and Workplace Relations, Support for mature age workers and Career Transition Assistance.
Source article: Navigating redundancy – make it work for you.
