Making Sure Your Sensibly Invest Your Redundancy Money

When you have been made redundant there is a chance that you will get a lump sum of money. If you have been with the company a long time, this could be a significant amount and they may hand over your pension fund and share options as well. It can be fun to do some spending but it is worth considering your future and the best thing to do with the money.
  • Short Term ExpensesIn the short-term, if you have no job to go to, then you may need the money to live off. If it is a big sum of money, it may be possible to save it or invest it somewhere and live off the income. This is unlikely though and so it may be wise to keep some money in an instant access account so that you can cover the cost of your bills. You may want to put some of it in a higher interest account, but until you find a new job, it could be sensible to keep that money handy. Once you have a source of income, then you may like to invest the money on a more long term basis.
  • Long Term InvestmentsIf you want to get a decent return on your money then you need to make an investment. Although these can be risky in the short term, if you keep your money in them for a long period of time, then they are more likely to give you a good return. It is wise to do a lot of research though because you will find that some investments are more risky than others. Your decision may depend on whether you prefer to take a risk and do not mind losing the money or whether you prefer something more secure with less risk.
  • PensionA pension scheme is a low risk investment for the future. If you do not have a pension or only have a small one, then it can be a worthwhile consideration. The only risk is if you die before retirement age. However, you can often organise a pension so that it gets left to your spouse should you die. This can give better return on the investment. You may not be keen on a pension fund though and there are other alternatives.
  • IsasISA’s are an attractive place to put money because they do not attract tax on their interest. This means that there is a higher gain from the money that is invested. There are different types and you can choose whether to have a safe cash ISA or a more risky stocks and shares one. They differ in risk and so you will have to decide what you risk you are prepared to take.
  • BondsBonds are longer term investments which are quite safe. You tend to be guaranteed to get your money back and you may get extra as well. Some can be tax free as well. 
Steve works for a law firm since last 5 years. He also works alongside soliciting practitioners providing solutions and redundancy pay investment tips to individuals and businesses.


  1. I have enjoyed reading your blog, and was wondering when you were going to continue?
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