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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

'Don't think of consolidation as the end of independent advice. It isn't'

'Don't think of consolidation as the end of independent advice. It isn't'

Continuity before everything else

Tom Rowe-Jones
clock 02 September 2026 • 5 min read
SENDA calls on profession to share how it supports families with disabilities

SENDA calls on profession to share how it supports families with disabilities

Part of white paper launching in November

Isabel Baxter
clock 02 September 2026 • 2 min read
Plannex memberships boosted by 'out of the blue' Reddit influx

Plannex memberships boosted by 'out of the blue' Reddit influx

Without spending a penny on the social media platform

Isabel Baxter
clock 01 September 2026 • 5 min read