Financial planning after job loss: your questions answered 

Losing your job puts a lot of decisions in front of you at once: welfare payments, your pension, health insurance, bills that don’t pause just because your income has. This guide answers the questions we hear most often, in plain English, so you know what to sort first and what can wait. 

What should I do financially in the first week after losing my job? 

Start by working out exactly what you’re owed: any statutory redundancy pay, notice pay, and outstanding holiday pay. Apply for a jobseeker’s payment within six weeks of your last day. Missing that window can affect what you’re entitled to. Hold off on any big spending decisions with a lump sum until you’ve got a clear picture of your numbers. 

Am I entitled to a payment from the State, and how much will I get? 

Most likely yes, if you’ve been paying PRSI. Since March 2025, most people who lose their job get Jobseeker’s Pay-Related Benefit (JPRB) rather than the older flat-rate payment. JPRB pays a percentage of your previous earnings: 60% (up to €450 a week) for the first three months, 55% (up to €375) for months four to six, and 50% (up to €300) for months seven to nine, if you’ve five or more years of PRSI contributions. There’s a minimum payment of €125 a week. If you don’t qualify for JPRB, the older Jobseeker’s Benefit rate applies instead, up to €254 a week depending on your average earnings. 

How do I apply, and is there a deadline? 

Apply within six weeks of your last day of employment, through mywelfare.ie or your local Intreo office. JPRB isn’t means-tested, so a partner’s income doesn’t affect your rate, but you can’t do any paid work, even part-time, or self employed income while receiving it. 

How long will my redundancy payment and savings actually last? 

Add up your guaranteed lump sums (your tax-free statutory redundancy and any tax-free portion of an ex-gratia payment) along with your savings, then divide by your realistic monthly outgoings, not your old salary, your actual essential spend. That’s your genuine runway. Treat your jobseeker’s payment as an extra buffer rather than your main plan, since it tapers down and stops after six to nine months. 

Should I use my redundancy lump sum to clear debt? 

It depends on the debt. High-interest debt like credit cards or personal loans is usually worth clearing, since that interest adds pressure fast while you’re not earning. But keep a cash buffer aside first, being debt-free with nothing left in the bank isn’t actually the safer position. 

What happens to my health insurance after I lose my job? 

If your employer was paying your health insurance, that cover usually stops when your employment ends. If you take out your own policy within 13 weeks, you keep continuity of cover and avoid a Lifetime Community Rating loading; an extra charge applied to anyone aged 35 or over who has a gap in cover longer than 13 weeks. Worth sorting sooner rather than later if that applies to you. 

What happens to my pension when I leave my job? 

You generally have a few options: leave it where it is, move it into a Personal Retirement Bond, or consolidate it with pensions from previous jobs so you can see everything in one place. If your employer topped up your redundancy with an ex-gratia payment, some or all of that can sometimes be redirected into your pension instead of taken as cash, which can reduce the tax you pay on it. These decisions are hard to reverse, so it’s worth checking your options before you commit either way. 

Should I dip into my pension or investments to cover living costs? 

Generally, treat this as a last resort rather than a first move. Pension access is restricted depending on your age and scheme, and cashing in investments early can lock in losses or trigger tax you’d otherwise avoid by waiting. Work through your jobseeker’s payment, savings and redundancy lump sum first. 

What if I’m struggling to cover my mortgage or rent? 

Talk to your lender early, before you miss a payment, not after. Under the Central Bank’s Code of Conduct on Mortgage Arrears, lenders are required to work with you on options like a temporary reduced payment or an interest-only period. MABS, the Money Advice and Budgeting Service, offers free independent support if you’d like someone in your corner for that conversation. 

When should I get financial advice? after redundancy? 

Ideally before you sign anything or make a decision on your ex-gratia payment, your pension, or a lump sum, you can’t undo. A short conversation early on is often the difference between a plan that holds up for the next twelve months and one that unravels by month four. 

Want to talk it through? 

If you’d like a second opinion on your options before you decide anything, we’re happy to have a chat. No pressure, no jargon, just a straight answer on what makes sense for you. 

Book a free chat with the askpaul team 

Disclaimer 

This article does not constitute tax or legal advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional, independent, and advice. This blog is for general information purposes and is not an invitation to deal or address your specific requirements. Any expressions of opinions are subject to change without notice. The information disclosed should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information of the various source material, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. A pension is a long-term investment not normally accessible until age 50. The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.